FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTS - CA3495531079 - Common Stock
71.81 CAD
-0.28 (-0.39%)
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 18 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- FTS had positive earnings in the past year.
- In the past year FTS had a positive cash flow from operations.
- In the past 5 years FTS has always been profitable.
- In the past 5 years FTS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of FTS (2.27%) is worse than 94.44% of its industry peers.
- 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 (4.20%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.03%.
- The 3 year average ROIC (4.10%) for FTS is below the current ROIC(4.20%), indicating increased profibility in the last year.
| 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.
- Looking at the Operating Margin, with a value of 28.97%, FTS is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- 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.
- 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
- 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
- Based on the Altman-Z score of 0.82, we must say that FTS is in the distress zone and 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.
- The Debt to Equity ratio of FTS (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.72
WACC5.83%
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 Current ratio of 0.66. This is amonst the worse of the industry: FTS underperforms 88.89% of its industry peers.
- 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.
- The Quick ratio of FTS (0.54) is worse than 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%.
- FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
- FTS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
- Measured over the past years, FTS 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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
- FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.12, FTS is valued on the expensive side.
- Based on the Price/Earnings ratio, FTS is valued more expensive than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, FTS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.74, the valuation of FTS can be described as rather expensive.
- 88.89% of the companies in the same industry are cheaper than FTS, based on the Price/Forward Earnings ratio.
- FTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.66 |
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)2.89
PEG (5Y)4.16
EPS Next 2Y5.32%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
- FTS has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
- FTS's Dividend Yield is comparable with the industry average which is at 4.51.
- Compared to an average S&P500 Dividend Yield of 1.92, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of FTS has a limited annual growth rate of 5.61%.
- FTS has been paying a dividend for at least 10 years, so it has 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 (1/15/2026, 7:00:00 PM)
71.81
-0.28 (-0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners56.44%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap36.30B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts65.71
Price Target75.66 (5.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.83%
Div Incr Years25
Div Non Decr Years33
Ex-Date02-17 2026-02-17 (0.64)
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)4.59%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.74 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 9.06 | ||
| P/B | 1.5 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 12.66 |
EPS(TTM)3.4
EY4.73%
EPS(NY)3.64
Fwd EY5.07%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)7.93
OCFY11.04%
SpS23.82
BVpS47.88
TBVpS19.4
PEG (NY)2.89
PEG (5Y)4.16
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 | 0.82 |
F-Score4
WACC5.83%
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 5Y6.03%
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 5Y3.8%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year74.46%
EBIT Next 3Y26%
EBIT Next 5Y17.54%
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.
What is the valuation status of FORTIS INC (FTS.CA) stock?
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.
Can you provide the expected EPS growth for FTS stock?
The Earnings per Share (EPS) of FORTIS INC (FTS.CA) is expected to grow by 7.31% in the next year.
Can you provide the dividend sustainability for FTS stock?
The dividend rating of FORTIS INC (FTS.CA) is 6 / 10 and the dividend payout ratio is 50.83%.