FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
TSX:FTS-PR-K - Toronto Stock Exchange - CA3495537845 - Currency: CAD
Taking everything into account, FTS-PR-K scores 4 out of 10 in our fundamental rating. FTS-PR-K was compared to 19 industry peers in the Electric Utilities industry. While FTS-PR-K has a great profitability rating, there are quite some concerns on its financial health. FTS-PR-K is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-K was profitable.
In the past year FTS-PR-K had a positive cash flow from operations.
Each year in the past 5 years FTS-PR-K has been profitable.
FTS-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS-PR-K has a better Return On Assets (2.19%) than 78.95% of its industry peers.
FTS-PR-K has a better Return On Equity (6.75%) than 78.95% of its industry peers.
The Return On Invested Capital of FTS-PR-K (4.06%) is better than 84.21% of its industry peers.
FTS-PR-K 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
The Profit Margin of FTS-PR-K (13.96%) is better than 84.21% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-K has declined.
Looking at the Operating Margin, with a value of 28.61%, FTS-PR-K 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-K has remained more or less at the same level.
FTS-PR-K has a better Gross Margin (71.77%) than 89.47% of its industry peers.
FTS-PR-K'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS-PR-K is destroying value.
Compared to 1 year ago, FTS-PR-K has more shares outstanding
The number of shares outstanding for FTS-PR-K has been increased compared to 5 years ago.
Compared to 1 year ago, FTS-PR-K has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that FTS-PR-K is in the distress zone and has some risk of bankruptcy.
FTS-PR-K has a Altman-Z score of 0.48. This is comparable to the rest of the industry: FTS-PR-K outperforms 42.11% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-K has dependencies on debt financing.
FTS-PR-K has a Debt to Equity ratio of 1.33. This is amongst the best in the industry. FTS-PR-K outperforms 84.21% of its industry peers.
| 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-K has a Current Ratio of 0.63. This is a bad value and indicates that FTS-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.63, FTS-PR-K is doing worse than 63.16% of the companies in the same industry.
FTS-PR-K has a Quick Ratio of 0.63. This is a bad value and indicates that FTS-PR-K 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-K 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 6.37% over the past year.
Measured over the past 5 years, FTS-PR-K 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.
Measured over the past years, FTS-PR-K shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
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-K will show a small growth in Earnings Per Share. The EPS will grow by 4.80% on average per year.
Based on estimates for the next years, FTS-PR-K will show a small growth in Revenue. The Revenue will grow by 2.36% on average per year.
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
A Price/Earnings ratio of 6.39 indicates a rather cheap valuation of FTS-PR-K.
FTS-PR-K's Price/Earnings ratio is rather cheap when compared to the industry. FTS-PR-K is cheaper than 89.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTS-PR-K to the average of the S&P500 Index (29.35), we can say FTS-PR-K is valued rather cheaply.
FTS-PR-K is valuated cheaply with a Price/Forward Earnings ratio of 6.11.
FTS-PR-K's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FTS-PR-K is cheaper than 68.42% of the companies in the same industry.
FTS-PR-K's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 6.11 |
4.2 Price Multiples
FTS-PR-K's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTS-PR-K is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
FTS-PR-K'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-K may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.25
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
FTS-PR-K has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.45, FTS-PR-K is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, FTS-PR-K pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of FTS-PR-K has a limited annual growth rate of 5.61%.
FTS-PR-K has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-K has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
50.93% of the earnings are spent on dividend by FTS-PR-K. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-K is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-K (3/7/2025, 7:00:00 PM)
21.02
+0.12 (+0.57%)
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 Cap10.50B
Analysts51.43
Price Target21.54 (2.47%)
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 Years1
Div Non Decr Years4
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)2%
PT rev (3m)8.5%
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 | 6.39 | ||
| Fwd PE | 6.11 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 2.7 | ||
| P/B | 0.44 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)3.29
EY15.65%
EPS(NY)3.44
Fwd EY16.37%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY36.99%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.37
PEG (5Y)1.25
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%