FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:FTS • CA3495531079
72.33 CAD
+0.01 (+0.01%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 3 out of 10 to FTS. FTS was compared to 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.
- FTS had a positive operating cash flow in the past year.
- In the past 5 years FTS has always been profitable.
- Each year in the past 5 years FTS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.27%, FTS is doing worse than 94.44% of the companies in the same industry.
- 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's Return On Invested Capital of 4.20% is in line compared to the rest of the industry. FTS outperforms 55.56% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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 of 14.02%. This is comparable 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.
- FTS has a better Operating Margin (28.97%) than 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.
- FTS's Gross Margin of 72.57% is fine compared to the rest of the industry. FTS outperforms 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS is destroying value.
- FTS has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FTS has more shares outstanding
- The debt/assets ratio for FTS is higher compared to a year ago.
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.
- FTS's Altman-Z score of 0.82 is amongst the best of the industry. FTS outperforms 88.89% of its industry peers.
- FTS has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- FTS's Debt to Equity ratio of 1.35 is in line compared to the rest of the industry. FTS outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.71
WACC5.95%
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.
- 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.
- Looking at the Quick ratio, with a value of 0.54, FTS is doing worse than 88.89% of the companies in the same industry.
| 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.
- 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)7.26%
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.
- Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
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
- 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
- Based on the Price/Earnings ratio of 21.27, the valuation of FTS can be described as rather expensive.
- 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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- With a Price/Forward Earnings ratio of 19.88, FTS is valued on the expensive side.
- 88.89% of the companies in the same industry are cheaper than FTS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. FTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 19.88 |
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 | 12.7 |
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)2.85
PEG (5Y)4.19
EPS Next 2Y5.33%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
- FTS has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.93, FTS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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.
- FTS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP50.83%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
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 7.47% 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%.