FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTS-PR-M - CA3495537688
24.86 CAD
+0.09 (+0.36%)
We assign a fundamental rating of 4 out of 10 to FTS-PR-M. FTS-PR-M was compared to 18 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 has a valuation in line with the averages, 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.
- FTS-PR-M had positive earnings in each of the past 5 years.
- In the past 5 years FTS-PR-M always reported a positive cash flow from operatings.
1.2 Ratios
- FTS-PR-M has a Return On Assets of 2.27%. This is amonst the worse of the industry: FTS-PR-M underperforms 83.33% of its industry peers.
- FTS-PR-M has a Return On Equity of 6.97%. This is amonst the worse of the industry: FTS-PR-M underperforms 83.33% of its industry peers.
- FTS-PR-M has a better Return On Invested Capital (4.20%) than 66.67% 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 4.03%.
- The last Return On Invested Capital (4.20%) for FTS-PR-M is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROIC | 4.2% |
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 has a better Profit Margin (14.02%) than 61.11% of its industry peers.
- FTS-PR-M's Profit Margin has declined in the last couple of years.
- FTS-PR-M has a Operating Margin of 28.97%. This is in the better half of the industry: FTS-PR-M outperforms 72.22% of its industry peers.
- In the last couple of years the Operating Margin of FTS-PR-M has remained more or less at the same level.
- With a decent Gross Margin value of 72.57%, FTS-PR-M is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- 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 | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% |
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.
- Compared to 5 years ago, FTS-PR-M has more shares outstanding
- The debt/assets ratio for FTS-PR-M is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.53, we must say that FTS-PR-M is in the distress zone and has some risk of bankruptcy.
- FTS-PR-M has a better Altman-Z score (0.53) than 72.22% of its industry peers.
- FTS-PR-M has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 1.35, FTS-PR-M is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.53 |
ROIC/WACC0.87
WACC4.83%
2.3 Liquidity
- FTS-PR-M has a Current Ratio of 0.66. 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.
- FTS-PR-M has a Current ratio of 0.66. This is in the lower half of the industry: FTS-PR-M underperforms 77.78% of its industry peers.
- A Quick Ratio of 0.54 indicates that FTS-PR-M may have some problems paying its short term obligations.
- FTS-PR-M has a Quick ratio of 0.54. This is in the lower half of the industry: FTS-PR-M underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
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 7.26%.
- Measured over the past 5 years, FTS-PR-M shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
- FTS-PR-M shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
- 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)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
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 6.03% yearly.
- The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y7.47%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
EPS Next 5Y6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.8%
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
- The Price/Earnings ratio is 7.31, which indicates a rather cheap valuation of FTS-PR-M.
- FTS-PR-M's Price/Earnings ratio is a bit more expensive when compared to the industry. FTS-PR-M is more expensive than 66.67% of the companies in the same industry.
- FTS-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 6.83 indicates a rather cheap valuation of FTS-PR-M.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS-PR-M is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of FTS-PR-M to the average of the S&P500 Index (25.98), we can say FTS-PR-M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTS-PR-M is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
- FTS-PR-M'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-M may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.44
EPS Next 2Y5.33%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.55%, FTS-PR-M has a reasonable but not impressive dividend return.
- FTS-PR-M's Dividend Yield is slightly below the industry average, which is at 3.93.
- Compared to an average S&P500 Dividend Yield of 1.81, FTS-PR-M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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
- 50.83% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.83%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
FORTIS INC - FTSCN 5.493 PERP / FTS-PR-M.CA FAQ
Can you provide the ChartMill fundamental rating for FORTIS INC - FTSCN 5.493 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to FTS-PR-M.CA.
What is the valuation status of FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for FORTIS INC - FTSCN 5.493 PERP?
FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) has a profitability rating of 6 / 10.
What is the valuation of FORTIS INC - FTSCN 5.493 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) is 7.31 and the Price/Book (PB) ratio is 0.52.
What is the earnings growth outlook for FORTIS INC - FTSCN 5.493 PERP?
The Earnings per Share (EPS) of FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) is expected to grow by 7.47% in the next year.