FORTIS INC (FTS.CA) Stock Fundamental Analysis
TSX:FTS - Toronto Stock Exchange - CA3495531079 - Common Stock - Currency: CAD
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS while its profitability can be described as average. FTS is valued expensive and it does not seem to be growing. 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.
Each year in the past 5 years FTS had a positive operating cash flow.
1.2 Ratios
FTS has a Return On Assets (2.20%) which is in line with its industry peers.
FTS has a Return On Equity of 6.82%. This is amonst the worse of the industry: FTS underperforms 94.74% of its industry peers.
FTS has a Return On Invested Capital (4.04%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 3.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROIC | 4.04% |
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 (14.03%) which is in line with its industry peers.
FTS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.73%, FTS is doing good in the industry, outperforming 63.16% 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.
Looking at the Gross Margin, with a value of 72.03%, FTS is in the better half of the industry, outperforming 63.16% 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 | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% |
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
FTS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FTS has been increased compared to 1 year ago.
The number of shares outstanding for FTS has been increased compared to 5 years ago.
FTS has a worse debt/assets ratio than last year.
2.2 Solvency
FTS has an Altman-Z score of 0.76. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FTS (0.76) is better than 84.21% of its industry peers.
FTS has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
FTS has a Debt to Equity ratio of 1.37. This is comparable to the rest of the industry: FTS outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.71
WACC5.73%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FTS may have some problems paying its short term obligations.
FTS has a Current ratio (0.76) which is in line with its industry peers.
A Quick Ratio of 0.63 indicates that FTS may have some problems paying its short term obligations.
FTS's Quick ratio of 0.63 is in line compared to the rest of the industry. FTS outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
FTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
Measured over the past 5 years, FTS shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
Looking at the last year, FTS shows a small growth in Revenue. The Revenue has grown by 3.64% in the last year.
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)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
3.2 Future
The Earnings Per Share is expected to grow by 5.31% on average over the next years.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
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
FTS is valuated rather expensively with a Price/Earnings ratio of 19.29.
FTS's Price/Earnings ratio is rather expensive when compared to the industry. FTS is more expensive than 89.47% 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 27.30.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 18.05.
84.21% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued expensively inside the industry as 89.47% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.36 |
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)3.85
PEG (5Y)3.8
EPS Next 2Y4.48%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.04%, FTS is a good candidate for dividend investing.
FTS's Dividend Yield is rather good when compared to the industry average which is at 6.59. FTS pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.61%
Div Incr Years25
Div Non Decr Years33
5.3 Sustainability
50.67% of the earnings are spent on dividend by FTS. This is a bit on the high side, but may be sustainable.
FTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.67%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
TSX:FTS (7/11/2025, 7:00:00 PM)
64.61
+0.18 (+0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap32.41B
Analysts54.17
Price Target70.38 (8.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.67%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.44%
Min EPS beat(2)1.1%
Max EPS beat(2)1.78%
EPS beat(4)4
Avg EPS beat(4)1.78%
Min EPS beat(4)1.1%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)1.67%
EPS beat(12)10
Avg EPS beat(12)1.87%
EPS beat(16)10
Avg EPS beat(16)0.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-5.1%
Revenue beat(12)4
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)3.7%
PT rev (3m)5.95%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.29 | ||
| Fwd PE | 18.05 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 7.49 | ||
| P/B | 1.34 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)3.35
EY5.18%
EPS(NY)3.58
Fwd EY5.54%
FCF(TTM)-2.63
FCFYN/A
OCF(TTM)8.63
OCFY13.35%
SpS23.38
BVpS48.11
TBVpS18.62
PEG (NY)3.85
PEG (5Y)3.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 6.82% | ||
| ROCE | 4.86% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 5.19% | ||
| OM | 28.73% | ||
| PM (TTM) | 14.03% | ||
| GM | 72.03% | ||
| 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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 285.98% | ||
| Cap/Sales | 48.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.76 |
F-Score5
WACC5.73%
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)7.72%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%7.53%
EPS Next Y5.01%
EPS Next 2Y4.48%
EPS Next 3Y4.84%
EPS Next 5Y5.31%
Revenue 1Y (TTM)3.64%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%7.06%
Revenue Next Year5.39%
Revenue Next 2Y4.82%
Revenue Next 3Y4.06%
Revenue Next 5Y3.02%
EBIT growth 1Y7.64%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y16.93%
FCF growth 1Y-81.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.24%
OCF growth 3Y10.12%
OCF growth 5Y7.71%