FORTIS INC - FTSCN 4 3/4 PERP (FTS-PR-J.CA) Stock Fundamental Analysis
TSX:FTS-PR-J - Toronto Stock Exchange - CA3495537928 - Currency: CAD
FTS-PR-J gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. FTS-PR-J scores excellent on profitability, but there are concerns on its financial health. FTS-PR-J is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-J was profitable.
FTS-PR-J had a positive operating cash flow in the past year.
FTS-PR-J had positive earnings in each of the past 5 years.
In the past 5 years FTS-PR-J always reported a positive cash flow from operatings.
1.2 Ratios
FTS-PR-J has a Return On Assets of 2.19%. This is in the better half of the industry: FTS-PR-J outperforms 78.95% of its industry peers.
FTS-PR-J's Return On Equity of 6.75% is fine compared to the rest of the industry. FTS-PR-J outperforms 78.95% of its industry peers.
FTS-PR-J has a better Return On Invested Capital (4.06%) than 84.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS-PR-J 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-J's Profit Margin of 13.96% is amongst the best of the industry. FTS-PR-J outperforms 84.21% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-J has declined.
Looking at the Operating Margin, with a value of 28.61%, FTS-PR-J belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of FTS-PR-J has remained more or less at the same level.
Looking at the Gross Margin, with a value of 71.77%, FTS-PR-J belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
FTS-PR-J's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS-PR-J is destroying value.
FTS-PR-J has more shares outstanding than it did 1 year ago.
FTS-PR-J has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTS-PR-J is higher compared to a year ago.
2.2 Solvency
FTS-PR-J has an Altman-Z score of 0.48. This is a bad value and indicates that FTS-PR-J is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS-PR-J (0.48) is comparable to the rest of the industry.
FTS-PR-J has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FTS-PR-J (1.33) is better than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.88
WACC4.64%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-J may have some problems paying its short term obligations.
FTS-PR-J's Current ratio of 0.63 is on the low side compared to the rest of the industry. FTS-PR-J is outperformed by 63.16% of its industry peers.
FTS-PR-J has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, FTS-PR-J is doing worse than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.15% over the past year.
Measured over the past 5 years, FTS-PR-J shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
FTS-PR-J shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
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
Based on estimates for the next years, FTS-PR-J will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
FTS-PR-J is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.93% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 6.18 indicates a rather cheap valuation of FTS-PR-J.
Based on the Price/Earnings ratio, FTS-PR-J is valued a bit cheaper than 78.95% of the companies in the same industry.
FTS-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
Based on the Price/Forward Earnings ratio of 5.88, the valuation of FTS-PR-J can be described as very cheap.
Based on the Price/Forward Earnings ratio, FTS-PR-J is valued a bit cheaper than 73.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. FTS-PR-J is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
FTS-PR-J's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTS-PR-J is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTS-PR-J has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)1.22
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-J has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.21, FTS-PR-J is paying slightly less dividend.
FTS-PR-J's Dividend Yield is a higher than the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of FTS-PR-J has a limited annual growth rate of 5.61%.
FTS-PR-J has been paying a dividend for at least 10 years, so it has a reliable track record.
FTS-PR-J has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
FTS-PR-J pays out 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-J 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-J (4/25/2025, 7:00:00 PM)
20.26
-0.19 (-0.93%)
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 Cap10.16B
Analysts51.82
Price Target20.16 (-0.49%)
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 Years0
Div Non Decr Years10
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)-7.29%
PT rev (3m)-6.06%
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 | 6.18 | ||
| Fwd PE | 5.88 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 2.62 | ||
| P/B | 0.43 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)3.28
EY16.19%
EPS(NY)3.44
Fwd EY17%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY38.2%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.23
PEG (5Y)1.22
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 | 0.48 |
F-Score4
WACC4.64%
ROIC/WACC0.88
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%