FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD
Overall FTS-PR-M gets a fundamental rating of 4 out of 10. We evaluated FTS-PR-M against 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS-PR-M while its profitability can be described as average. FTS-PR-M is valued correctly, but it does not seem to be growing. FTS-PR-M also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FTS-PR-M was profitable.
In the past year FTS-PR-M had a positive cash flow from operations.
In the past 5 years FTS-PR-M has always been profitable.
FTS-PR-M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.20%, FTS-PR-M is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
FTS-PR-M has a worse Return On Equity (6.82%) than 84.21% of its industry peers.
FTS-PR-M has a better Return On Invested Capital (4.04%) than 68.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTS-PR-M is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROIC | 4.04% |
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-M's Profit Margin of 14.03% is fine compared to the rest of the industry. FTS-PR-M outperforms 68.42% of its industry peers.
FTS-PR-M's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.73%, FTS-PR-M is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-M's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 72.03%, FTS-PR-M is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-M's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% |
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-M is destroying value.
FTS-PR-M has more shares outstanding than it did 1 year ago.
FTS-PR-M has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTS-PR-M has a worse debt to assets ratio.
2.2 Solvency
FTS-PR-M has an Altman-Z score of 0.51. This is a bad value and indicates that FTS-PR-M is not financially healthy and even has some risk of bankruptcy.
FTS-PR-M has a Altman-Z score of 0.51. This is comparable to the rest of the industry: FTS-PR-M outperforms 52.63% of its industry peers.
FTS-PR-M has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FTS-PR-M (1.37) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.51 |
ROIC/WACC0.86
WACC4.73%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS-PR-M may have some problems paying its short term obligations.
The Current ratio of FTS-PR-M (0.76) is better than 68.42% of its industry peers.
FTS-PR-M has a Quick Ratio of 0.76. This is a bad value and indicates that FTS-PR-M is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, FTS-PR-M is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.72% over the past year.
FTS-PR-M shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
The Revenue has been growing slightly by 3.64% in the past year.
Measured over the past years, FTS-PR-M shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
FTS-PR-M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
Based on estimates for the next years, FTS-PR-M will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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.
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 6.99, the valuation of FTS-PR-M can be described as very cheap.
FTS-PR-M's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. FTS-PR-M is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.54, the valuation of FTS-PR-M can be described as very cheap.
FTS-PR-M's Price/Forward Earnings is on the same level as the industry average.
FTS-PR-M's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FTS-PR-M may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)1.38
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.14%, FTS-PR-M is a good candidate for dividend investing.
FTS-PR-M's Dividend Yield is rather good when compared to the industry average which is at 6.57. FTS-PR-M pays more dividend than 89.47% of the companies in the same industry.
FTS-PR-M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
5.2 History
The dividend of FTS-PR-M has a limited annual growth rate of 5.61%.
FTS-PR-M has paid a dividend for at least 10 years, which is a reliable track record.
FTS-PR-M has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
50.67% of the earnings are spent on dividend by FTS-PR-M. This is a bit on the high side, but may be sustainable.
FTS-PR-M's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS-PR-M (7/14/2025, 7:00:00 PM)
23.43
+0.08 (+0.34%)
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 Cap11.80B
Analysts54.17
Price Target24.14 (3.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.44%
Min EPS beat(2)1.1%
Max EPS beat(2)1.78%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)1.1%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)1.87%
EPS beat(16)10
Avg EPS beat(16)0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)4
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)4.96%
PT rev (3m)10.05%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 6.54 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | 2.73 | ||
| P/B | 0.49 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)3.35
EY14.3%
EPS(NY)3.58
Fwd EY15.28%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.59
OCFY36.67%
SpS23.29
BVpS47.92
TBVpS18.54
PEG (NY)1.4
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROCE | 4.86% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 5.19% | ||
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% | ||
| 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 | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 285.98% | ||
| Cap/Sales | 48.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.51 |
F-Score5
WACC4.73%
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)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.93%
FCF growth 1Y-81.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.24%
OCF growth 3Y10.12%
OCF growth 5Y7.71%