FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD
Taking everything into account, FTS-PR-M scores 4 out of 10 in our fundamental rating. FTS-PR-M was compared to 19 industry peers in the Electric Utilities industry. FTS-PR-M has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS-PR-M is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years FTS-PR-M had a positive operating cash flow.
1.2 Ratios
FTS-PR-M has a Return On Assets of 2.19%. This is in the better half of the industry: FTS-PR-M outperforms 68.42% of its industry peers.
Looking at the Return On Equity, with a value of 6.75%, FTS-PR-M is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.06%, FTS-PR-M is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTS-PR-M 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-M's Profit Margin of 13.96% is fine compared to the rest of the industry. FTS-PR-M outperforms 73.68% of its industry peers.
In the last couple of years the Profit Margin of FTS-PR-M has declined.
FTS-PR-M's Operating Margin of 28.61% is fine compared to the rest of the industry. FTS-PR-M outperforms 78.95% of its industry peers.
FTS-PR-M's Operating Margin has been stable in the last couple of years.
FTS-PR-M has a Gross Margin of 71.77%. This is in the better half of the industry: FTS-PR-M outperforms 78.95% of its industry peers.
In the last couple of years the Gross Margin of FTS-PR-M 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-M is destroying value.
The number of shares outstanding for FTS-PR-M has been increased compared to 1 year ago.
Compared to 5 years ago, FTS-PR-M has more shares outstanding
FTS-PR-M has a worse debt/assets ratio than last year.
2.2 Solvency
FTS-PR-M has an Altman-Z score of 0.48. This is a bad value and indicates that FTS-PR-M is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS-PR-M (0.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-M has dependencies on debt financing.
FTS-PR-M has a Debt to Equity ratio of 1.33. This is in the better half of the industry: FTS-PR-M outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.87
WACC4.68%
2.3 Liquidity
A Current Ratio of 0.63 indicates that FTS-PR-M may have some problems paying its short term obligations.
With a Current ratio value of 0.63, FTS-PR-M is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that FTS-PR-M may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, FTS-PR-M is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS-PR-M shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.15%.
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.
FTS-PR-M shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
FTS-PR-M shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
FTS-PR-M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.09% yearly.
The Revenue is expected to grow by 2.93% on average over the next years.
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.
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
The Price/Earnings ratio is 6.23, which indicates a rather cheap valuation of FTS-PR-M.
Compared to the rest of the industry, the Price/Earnings ratio of FTS-PR-M indicates a somewhat cheap valuation: FTS-PR-M is cheaper than 68.42% of the companies listed in the same industry.
FTS-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.93, the valuation of FTS-PR-M can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-M indicates a somewhat cheap valuation: FTS-PR-M is cheaper than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, FTS-PR-M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.35 |
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-M has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.23
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
FTS-PR-M has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
FTS-PR-M's Dividend Yield is slightly below the industry average, which is at 4.21.
Compared to an average S&P500 Dividend Yield of 2.46, FTS-PR-M pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
50.93% of the earnings are spent on dividend by FTS-PR-M. This is a bit on the high side, but may be sustainable.
The dividend of FTS-PR-M 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-M (4/25/2025, 7:00:00 PM)
20.44
-0.21 (-1.02%)
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 Cap10.25B
Analysts51.82
Price Target20.67 (1.13%)
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 Years3
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)-5.92%
PT rev (3m)-6.16%
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 | 6.23 | ||
| Fwd PE | 5.93 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 2.64 | ||
| P/B | 0.43 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)3.28
EY16.05%
EPS(NY)3.44
Fwd EY16.85%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)7.74
OCFY37.86%
SpS22.94
BVpS47.46
TBVpS18.01
PEG (NY)1.24
PEG (5Y)1.23
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
WACC4.68%
ROIC/WACC0.87
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%