FORTIS INC - FTSCN 4 3/4 PERP (FTS-PR-J.CA) Stock Fundamental Analysis
TSX:FTS-PR-J - Toronto Stock Exchange - CA3495537928 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to FTS-PR-J. FTS-PR-J was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-J was profitable.
In the past year FTS-PR-J had a positive cash flow from operations.
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
With a decent Return On Assets value of 2.19%, FTS-PR-J is doing good in the industry, outperforming 73.68% of the companies in the same industry.
With a decent Return On Equity value of 6.75%, FTS-PR-J is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-J has a better Return On Invested Capital (4.06%) than 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 13.96%, FTS-PR-J is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
FTS-PR-J's Profit Margin has declined in the last couple of years.
FTS-PR-J has a Operating Margin of 28.61%. This is amongst the best in the industry. FTS-PR-J outperforms 84.21% of its industry peers.
In the last couple of years the Operating Margin of FTS-PR-J has remained more or less at the same level.
FTS-PR-J has a better Gross Margin (71.77%) than 84.21% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-J 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-J is destroying value.
The number of shares outstanding for FTS-PR-J has been increased compared to 1 year ago.
Compared to 5 years ago, FTS-PR-J has more shares outstanding
FTS-PR-J has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that FTS-PR-J is in the distress zone and has some risk of bankruptcy.
FTS-PR-J has a Altman-Z score (0.48) which 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.
Looking at the Debt to Equity ratio, with a value of 1.33, FTS-PR-J is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.82
WACC4.98%
2.3 Liquidity
FTS-PR-J has a Current 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.
With a Current ratio value of 0.63, FTS-PR-J is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
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.
The Quick ratio of FTS-PR-J (0.52) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-J shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.37%.
Measured over the past 5 years, FTS-PR-J shows a small growth in Earnings Per Share. The EPS has been growing by 5.13% on average per year.
The Revenue has decreased by -0.08% in the past year.
FTS-PR-J shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
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 4.80% on average per year.
The Revenue is expected to grow by 2.36% on average over the next years.
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.44, the valuation of FTS-PR-J can be described as very cheap.
Based on the Price/Earnings ratio, FTS-PR-J is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FTS-PR-J is valued rather cheaply.
A Price/Forward Earnings ratio of 6.16 indicates a rather cheap valuation of FTS-PR-J.
Based on the Price/Forward Earnings ratio, FTS-PR-J is valued a bit cheaper than 63.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FTS-PR-J is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-J is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
FTS-PR-J's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FTS-PR-J may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)1.26
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
FTS-PR-J has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 4.45, FTS-PR-J is paying slightly less dividend.
FTS-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
50.93% of the earnings are spent on dividend by FTS-PR-J. This is a bit on the high side, but may be sustainable.
FTS-PR-J's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-J (3/7/2025, 7:00:00 PM)
21.2
-0.09 (-0.42%)
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 Cap10.59B
Analysts51.43
Price Target21.74 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)2.35%
Min EPS beat(2)2.18%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.38%
Min EPS beat(4)1.71%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)9
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-10.22%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.49%
Min Revenue beat(4)-10.22%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.18%
Revenue beat(12)5
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)1.67%
PT rev (1m)3.47%
PT rev (3m)6.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 6.16 | ||
| P/S | 0.92 | ||
| P/FCF | N/A | ||
| P/OCF | 2.73 | ||
| P/B | 0.44 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)3.29
EY15.52%
EPS(NY)3.44
Fwd EY16.23%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY36.67%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.38
PEG (5Y)1.26
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
WACC4.98%
ROIC/WACC0.82
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)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.53%
EBIT Next 3Y25.25%
EBIT Next 5Y16.49%
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%