FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTS - CA3495531079 - Common Stock
70.64 CAD
-0.3 (-0.42%)
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 16 industry peers in the Electric Utilities industry. FTS has a medium profitability rating, but doesn't score so well on its financial health evaluation. FTS is quite expensive at the moment. It does show a decent growth rate. FTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FTS had positive earnings in the past year.
FTS had a positive operating cash flow in the past year.
In the past 5 years FTS has always been profitable.
FTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS's Return On Assets of 2.27% is on the low side compared to the rest of the industry. FTS is outperformed by 94.44% of its industry peers.
FTS has a Return On Equity of 6.97%. This is amonst the worse of the industry: FTS underperforms 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.20%, FTS is in line with its industry, outperforming 55.56% of the companies in the same industry.
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 has a Profit Margin (14.02%) which is comparable to the rest of the industry.
FTS's Profit Margin has declined in the last couple of years.
FTS has a Operating Margin of 28.97%. This is in the better half of the industry: FTS outperforms 61.11% of its industry peers.
In the last couple of years the Operating Margin of FTS has remained more or less at the same level.
With a decent Gross Margin value of 72.57%, FTS is doing good in the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Gross Margin of FTS 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 is destroying value.
Compared to 1 year ago, FTS has more shares outstanding
Compared to 5 years ago, FTS has more shares outstanding
Compared to 1 year ago, FTS has a worse debt to assets ratio.
2.2 Solvency
FTS has an Altman-Z score of 0.81. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.81, FTS belongs to the top 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 | 0.81 |
ROIC/WACC0.72
WACC5.81%
2.3 Liquidity
FTS has a Current 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 Current ratio (0.66) than 88.89% of its industry peers.
A Quick Ratio of 0.54 indicates that FTS may have some problems paying its short term obligations.
FTS has a Quick ratio of 0.54. This is amonst the worse of the industry: FTS underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
FTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
The Revenue has been growing slightly by 5.21% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.39% on average over the next years.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
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 accelerating.
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 20.78.
FTS's Price/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 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.42 indicates a rather expensive valuation of FTS.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.46. FTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
88.89% of the companies in the same industry are cheaper than FTS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.84
PEG (5Y)4.09
EPS Next 2Y5.32%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 5.75%, which is a nice return.
FTS's Dividend Yield is rather good when compared to the industry average which is at 5.32. FTS pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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
FTS pays out 50.83% of its income as dividend. 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 2Y5.32%
EPS Next 3Y5.62%
TSX:FTS (12/24/2025, 7:00:00 PM)
70.64
-0.3 (-0.42%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.48%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap35.70B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts65.71
Price Target75.66 (7.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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)1.08%
Min EPS beat(2)-5.22%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-5.22%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)1.7%
EPS beat(12)10
Avg EPS beat(12)2.25%
EPS beat(16)11
Avg EPS beat(16)0.79%
Revenue beat(2)2
Avg Revenue beat(2)1.8%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-3.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.61%
Revenue beat(16)8
Avg Revenue beat(16)1.43%
PT rev (1m)0.97%
PT rev (3m)4.82%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 19.42 | ||
| P/S | 2.97 | ||
| P/FCF | N/A | ||
| P/OCF | 8.91 | ||
| P/B | 1.48 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)3.4
EY4.81%
EPS(NY)3.64
Fwd EY5.15%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)7.93
OCFY11.22%
SpS23.82
BVpS47.88
TBVpS19.4
PEG (NY)2.84
PEG (5Y)4.09
Graham Number60.52
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 | 0.81 |
F-Score4
WACC5.81%
ROIC/WACC0.72
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)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year74.46%
EBIT Next 3Y26%
EBIT Next 5Y18.99%
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 20.78 and the Price/Book (PB) ratio is 1.48.
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%.