FORTIS INC - FTSCN 5.469 PERP (FTS-PR-K.CA) Stock Fundamental Analysis
Canada - TSX:FTS-PR-K - CA3495537845
22.85 CAD
+0.05 (+0.22%)
FTS-PR-K gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. FTS-PR-K scores excellent on profitability, but there are concerns on its financial health. FTS-PR-K has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FTS-PR-K had positive earnings in the past year.
FTS-PR-K had a positive operating cash flow in the past year.
FTS-PR-K had positive earnings in each of the past 5 years.
FTS-PR-K had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.33%, FTS-PR-K is doing good in the industry, outperforming 72.22% of the companies in the same industry.
FTS-PR-K's Return On Equity of 7.19% is fine compared to the rest of the industry. FTS-PR-K outperforms 72.22% of its industry peers.
FTS-PR-K's Return On Invested Capital of 4.27% is fine compared to the rest of the industry. FTS-PR-K outperforms 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-K is in line with the industry average of 4.02%.
The last Return On Invested Capital (4.27%) for FTS-PR-K is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROIC | 4.27% |
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
With a decent Profit Margin value of 14.31%, FTS-PR-K is doing good in the industry, outperforming 72.22% of the companies in the same industry.
FTS-PR-K's Profit Margin has declined in the last couple of years.
FTS-PR-K's Operating Margin of 28.90% is amongst the best of the industry. FTS-PR-K outperforms 83.33% of its industry peers.
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 (72.37%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-K has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% |
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-K has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS-PR-K has more shares outstanding than it did 1 year ago.
FTS-PR-K has more shares outstanding than it did 5 years ago.
FTS-PR-K has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that FTS-PR-K is in the distress zone and has some risk of bankruptcy.
FTS-PR-K's Altman-Z score of 0.51 is fine compared to the rest of the industry. FTS-PR-K outperforms 61.11% of its industry peers.
FTS-PR-K has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.33, FTS-PR-K is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.89
WACC4.81%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS-PR-K may have some problems paying its short term obligations.
FTS-PR-K has a worse Current ratio (0.58) than 66.67% of its industry peers.
FTS-PR-K has a Quick Ratio of 0.58. 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.
FTS-PR-K has a Quick ratio of 0.47. This is in the lower half of the industry: FTS-PR-K underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.86% 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 5.08% on average per year.
FTS-PR-K shows a small growth in Revenue. In the last year, the Revenue has grown by 4.22%.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
3.2 Future
FTS-PR-K is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.63% yearly.
FTS-PR-K is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue Next Year7.11%
Revenue Next 2Y5.79%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
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
With a Price/Earnings ratio of 6.64, the valuation of FTS-PR-K can be described as very cheap.
Based on the Price/Earnings ratio, FTS-PR-K is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
FTS-PR-K's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 6.30, the valuation of FTS-PR-K can be described as very cheap.
Based on the Price/Forward Earnings ratio, FTS-PR-K is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
FTS-PR-K's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
FTS-PR-K's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
FTS-PR-K's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FTS-PR-K may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)1.31
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, FTS-PR-K has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.26, FTS-PR-K pays a bit more dividend than its industry peers.
FTS-PR-K's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of FTS-PR-K has a limited annual growth rate of 5.61%.
FTS-PR-K has been paying a dividend for at least 10 years, so it has 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
49.62% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP49.62%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
TSX:FTS-PR-K (9/12/2025, 7:00:00 PM)
22.85
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.51B
Analysts64.76
Price Target24.18 (5.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.78%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)3.2%
Min EPS beat(4)1.1%
Max EPS beat(4)7.39%
EPS beat(8)8
Avg EPS beat(8)2.61%
EPS beat(12)11
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)1.01%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.3%
Revenue beat(4)1
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-4.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)0.87%
PT rev (3m)6.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 2.67 | ||
| P/B | 0.49 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)3.44
EY15.05%
EPS(NY)3.63
Fwd EY15.87%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY37.51%
SpS23.57
BVpS46.91
TBVpS18.87
PEG (NY)0.89
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROCE | 5.15% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.28% | ||
| ROICexgc | 5.43% | ||
| OM | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% | ||
| 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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 302.94% | ||
| Cap/Sales | 51.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.51 |
F-Score5
WACC4.81%
ROIC/WACC0.89
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)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year7.11%
Revenue Next 2Y5.79%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.7%
FCF growth 1Y-175.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.44%
OCF growth 3Y10.12%
OCF growth 5Y7.71%