FORTIS INC - FTSCN 5.493 PERP (FTS-PR-M.CA) Stock Fundamental Analysis
TSX:FTS-PR-M - Toronto Stock Exchange - CA3495537688 - Currency: CAD
FTS-PR-M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FTS-PR-M had positive earnings in the past year.
FTS-PR-M had a positive operating cash flow in the past year.
Each year in the past 5 years FTS-PR-M has been profitable.
In the past 5 years FTS-PR-M always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.19%, FTS-PR-M is doing good in the industry, outperforming 68.42% of the companies in the same industry.
The Return On Equity of FTS-PR-M (6.75%) is better than 68.42% of its industry peers.
FTS-PR-M has a better Return On Invested Capital (4.06%) than 73.68% of its industry peers.
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
With a decent Profit Margin value of 13.96%, FTS-PR-M is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FTS-PR-M's Profit Margin has declined in the last couple of years.
FTS-PR-M has a Operating Margin of 28.61%. 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 Operating Margin of FTS-PR-M has remained more or less at the same level.
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.
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.
The debt/assets ratio for FTS-PR-M is higher compared to a year ago.
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.
FTS-PR-M has a Altman-Z score of 0.48. This is comparable to the rest of the industry: FTS-PR-M outperforms 52.63% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS-PR-M has dependencies on debt financing.
The Debt to Equity ratio of FTS-PR-M (1.33) is better than 73.68% 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
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.
FTS-PR-M has a Quick Ratio of 0.63. 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.
The Quick ratio of FTS-PR-M (0.52) is worse than 78.95% of its industry peers.
| 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 6.37%.
The Earnings Per Share has been growing slightly by 5.13% on average over the past years.
Looking at the last year, FTS-PR-M shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
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)6.37%
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
FTS-PR-M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
FTS-PR-M is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.36% yearly.
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 6.49 indicates a rather cheap valuation of FTS-PR-M.
Based on the Price/Earnings ratio, FTS-PR-M is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
FTS-PR-M is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of FTS-PR-M.
The rest of the industry has a similar Price/Forward Earnings ratio as FTS-PR-M.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FTS-PR-M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 6.21 |
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 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.43 |
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)1.39
PEG (5Y)1.27
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, FTS-PR-M has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.45, FTS-PR-M is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, FTS-PR-M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of FTS-PR-M has a limited annual growth rate of 5.61%.
FTS-PR-M has been paying a dividend for at least 10 years, so it has 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.
FTS-PR-M's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS-PR-M (3/7/2025, 7:00:00 PM)
21.35
+0.1 (+0.47%)
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 Cap10.66B
Analysts51.43
Price Target21.98 (2.95%)
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 Years0
Div Non Decr Years3
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)1.24%
PT rev (3m)5.49%
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 | 6.49 | ||
| Fwd PE | 6.21 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 2.75 | ||
| P/B | 0.45 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)3.29
EY15.41%
EPS(NY)3.44
Fwd EY16.11%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY36.42%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)1.39
PEG (5Y)1.27
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%