FORTIS INC - FTSCN 4.1 PERP (FTS-PR-I.CA) Stock Fundamental Analysis
TSX:FTS-PR-I - Toronto Stock Exchange - CA3495538181 - Currency: CAD
Overall FTS-PR-I gets a fundamental rating of 5 out of 10. We evaluated FTS-PR-I against 19 industry peers in the Electric Utilities industry. FTS-PR-I scores excellent on profitability, but there are concerns on its financial health. FTS-PR-I is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FTS-PR-I had positive earnings in the past year.
FTS-PR-I had a positive operating cash flow in the past year.
FTS-PR-I had positive earnings in each of the past 5 years.
In the past 5 years FTS-PR-I always reported a positive cash flow from operatings.
1.2 Ratios
FTS-PR-I has a better Return On Assets (2.19%) than 84.21% of its industry peers.
FTS-PR-I's Return On Equity of 6.75% is amongst the best of the industry. FTS-PR-I outperforms 84.21% of its industry peers.
FTS-PR-I has a Return On Invested Capital of 4.06%. This is amongst the best in the industry. FTS-PR-I outperforms 89.47% of its industry peers.
FTS-PR-I had an Average Return On Invested Capital over the past 3 years of 4.10%. This is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
1.3 Margins
FTS-PR-I's Profit Margin of 13.96% is amongst the best of the industry. FTS-PR-I outperforms 89.47% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-I has declined.
FTS-PR-I has a better Operating Margin (28.61%) than 94.74% of its industry peers.
FTS-PR-I's Operating Margin has been stable in the last couple of years.
FTS-PR-I has a Gross Margin of 71.77%. This is amongst the best in the industry. FTS-PR-I outperforms 94.74% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-I has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
FTS-PR-I has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FTS-PR-I has more shares outstanding
Compared to 5 years ago, FTS-PR-I has more shares outstanding
FTS-PR-I has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-I has an Altman-Z score of 0.45. This is a bad value and indicates that FTS-PR-I is not financially healthy and even has some risk of bankruptcy.
FTS-PR-I has a Altman-Z score of 0.45. This is in the lower half of the industry: FTS-PR-I underperforms 78.95% of its industry peers.
FTS-PR-I has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS-PR-I's Debt to Equity ratio of 1.33 is amongst the best of the industry. FTS-PR-I outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.86
WACC4.7%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-I may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, FTS-PR-I is in line with its industry, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that FTS-PR-I may have some problems paying its short term obligations.
FTS-PR-I's Quick ratio of 0.52 is on the low side compared to the rest of the industry. FTS-PR-I is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-I shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.15%.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
Looking at the last year, FTS-PR-I shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
3.2 Future
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
Based on estimates for the next years, FTS-PR-I will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTS-PR-I is valuated cheaply with a Price/Earnings ratio of 4.80.
FTS-PR-I's Price/Earnings ratio is rather cheap when compared to the industry. FTS-PR-I is cheaper than 94.74% of the companies in the same industry.
FTS-PR-I's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.98.
FTS-PR-I is valuated cheaply with a Price/Forward Earnings ratio of 4.58.
Based on the Price/Forward Earnings ratio, FTS-PR-I is valued cheaper than 94.74% of the companies in the same industry.
FTS-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-I is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FTS-PR-I has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)0.95
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, FTS-PR-I has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.21, FTS-PR-I's dividend is way lower than its industry peers. On top of this 84.21% of the companies listed in the same industry pay a better dividend than FTS-PR-I!
Compared to an average S&P500 Dividend Yield of 2.46, FTS-PR-I pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of FTS-PR-I has a limited annual growth rate of 5.61%.
FTS-PR-I has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-I. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-I is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-I (4/28/2025, 7:00:00 PM)
15.76
-0.11 (-0.69%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap7.91B
Analysts51.82
Price Target15.77 (0.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.81%
Min EPS beat(2)1.1%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.11%
Min EPS beat(4)1.1%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.73%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)10
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-8.61%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.8%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.33%
Revenue beat(12)5
Avg Revenue beat(12)0.72%
Revenue beat(16)9
Avg Revenue beat(16)1.6%
PT rev (1m)-7.93%
PT rev (3m)-8.92%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.64%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.58 | ||
| P/S | 0.69 | ||
| P/FCF | N/A | ||
| P/OCF | 2.04 | ||
| P/B | 0.33 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)3.28
EY20.81%
EPS(NY)3.44
Fwd EY21.86%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY49.1%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)0.96
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| FCFM | N/A |
ROA(3y)2.18%
ROA(5y)2.17%
ROE(3y)6.69%
ROE(5y)6.58%
ROIC(3y)4.1%
ROIC(5y)4.04%
ROICexc(3y)4.12%
ROICexc(5y)4.06%
ROICexgc(3y)5.36%
ROICexgc(5y)5.34%
ROCE(3y)4.93%
ROCE(5y)4.87%
ROICexcg growth 3Y0.42%
ROICexcg growth 5Y-1.68%
ROICexc growth 3Y1.61%
ROICexc growth 5Y-0.39%
OM growth 3Y3.06%
OM growth 5Y0.41%
PM growth 3Y2.32%
PM growth 5Y-5.83%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.45 |
F-Score4
WACC4.7%
ROIC/WACC0.86
Cap/Depr(3y)245.88%
Cap/Depr(5y)249.09%
Cap/Sales(3y)38.85%
Cap/Sales(5y)39.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.15%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%15.28%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.09%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%2.22%
Revenue Next Year4.93%
Revenue Next 2Y4.5%
Revenue Next 3Y3.94%
Revenue Next 5Y2.93%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.93%
EBIT Next 3Y25.61%
EBIT Next 5Y16.63%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%