FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
72.44 CAD
-0.24 (-0.33%)
We assign a fundamental rating of 3 out of 10 to FTS. FTS was compared to 18 industry peers in the Electric Utilities industry. While FTS is still in line with the averages on profitability rating, there are concerns on its financial health. FTS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
In the past year FTS had a positive cash flow from operations.
Each year in the past 5 years FTS has been profitable.
In the past 5 years FTS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.27%, FTS is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
With a Return On Equity value of 6.97%, FTS is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
FTS has a Return On Invested Capital of 4.20%. This is comparable to the rest of the industry: FTS outperforms 55.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.02%.
The last Return On Invested Capital (4.20%) for FTS 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's Profit Margin of 14.02% is in line compared to the rest of the industry. FTS outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of FTS has declined.
With a decent Operating Margin value of 28.97%, FTS is doing good in the industry, outperforming 61.11% of the companies in the same industry.
FTS's Operating Margin has been stable in the last couple of years.
FTS has a better Gross Margin (72.57%) than 61.11% of its industry peers.
FTS's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS is destroying value.
The number of shares outstanding for FTS has been increased compared to 1 year ago.
FTS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTS is higher compared to a year ago.
2.2 Solvency
FTS has an Altman-Z score of 0.82. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.82, FTS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that FTS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.35, FTS is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.71
WACC5.87%
2.3 Liquidity
A Current Ratio of 0.66 indicates that FTS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, FTS is doing worse than 88.89% of the companies in the same industry.
FTS has a Quick Ratio of 0.66. This is a bad value and indicates that FTS is not financially healthy enough and could expect problems in meeting its short term obligations.
FTS has a worse Quick ratio (0.54) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.89% over the past year.
FTS 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 5.21% in the past year.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
3.2 Future
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.85% yearly.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
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
FTS is valuated rather expensively with a Price/Earnings ratio of 21.18.
Based on the Price/Earnings ratio, FTS is valued more expensive than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (25.47), we can say FTS is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.12, FTS is valued on the expensive side.
FTS's Price/Forward Earnings ratio is rather expensive when compared to the industry. FTS is more expensive than 88.89% of the companies in the same industry.
FTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS indicates a rather expensive valuation: FTS more expensive than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FTS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.29
PEG (5Y)4.17
EPS Next 2Y4.76%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, FTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.42, FTS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FTS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of FTS has a limited annual growth rate of 5.61%.
FTS has paid a dividend for at least 10 years, which is a reliable track record.
FTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years25
Div Non Decr Years33
5.3 Sustainability
50.83% of the earnings are spent on dividend by FTS. This is a bit on the high side, but may be sustainable.
The dividend of FTS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP50.83%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
TSX:FTS (11/19/2025, 7:00:00 PM)
72.44
-0.24 (-0.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap36.61B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts64.76
Price Target72.64 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.83%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.27%
Min EPS beat(2)-2.85%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)1.85%
Min EPS beat(4)-2.85%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)2%
EPS beat(12)10
Avg EPS beat(12)2.45%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)2
Avg Revenue beat(2)2.92%
Min Revenue beat(2)1.3%
Max Revenue beat(2)4.54%
Revenue beat(4)2
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)4.54%
Revenue beat(8)2
Avg Revenue beat(8)-3.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.42%
Revenue beat(16)8
Avg Revenue beat(16)1.57%
PT rev (1m)0.41%
PT rev (3m)2.47%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)4.29%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 20.12 | ||
| P/S | 3.04 | ||
| P/FCF | N/A | ||
| P/OCF | 9.14 | ||
| P/B | 1.51 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)3.42
EY4.72%
EPS(NY)3.6
Fwd EY4.97%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)7.93
OCFY10.94%
SpS23.82
BVpS47.88
TBVpS19.4
PEG (NY)3.29
PEG (5Y)4.17
Graham Number60.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROCE | 5.06% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 5.33% | ||
| OM | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% | ||
| 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%
ROICexgc growth 3Y0.42%
ROICexgc 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 | 1.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 304.79% | ||
| Cap/Sales | 51.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.82 |
F-Score4
WACC5.87%
ROIC/WACC0.71
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)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18.17%
FCF growth 1Y-510.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.21%
OCF growth 3Y10.12%
OCF growth 5Y7.71%
FORTIS INC / FTS.CA FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.CA.
Can you provide the valuation status for FORTIS INC?
ChartMill assigns a valuation rating of 1 / 10 to FORTIS INC (FTS.CA). This can be considered as Overvalued.
Can you provide the profitability details for FORTIS INC?
FORTIS INC (FTS.CA) has a profitability rating of 5 / 10.
What is the valuation of FORTIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIS INC (FTS.CA) is 21.18 and the Price/Book (PB) ratio is 1.51.
How sustainable is the dividend of FORTIS INC (FTS.CA) stock?
The dividend rating of FORTIS INC (FTS.CA) is 6 / 10 and the dividend payout ratio is 50.83%.