FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
72.64 CAD
+0.63 (+0.87%)
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 is valued expensive and it does not seem to be growing.
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.
FTS had positive earnings in each of the past 5 years.
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 2.33%, FTS is in line with its industry, outperforming 50.00% of the companies in the same industry.
FTS has a Return On Equity (7.19%) which is comparable to the rest of the industry.
FTS's Return On Invested Capital of 4.27% is in line compared to the rest of the industry. FTS outperforms 55.56% of its industry peers.
FTS had an Average Return On Invested Capital over the past 3 years of 4.10%. This is in line with the industry average of 4.02%.
The last Return On Invested Capital (4.27%) for FTS is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROIC | 4.27% |
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
The Profit Margin of FTS (14.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FTS has declined.
The Operating Margin of FTS (28.90%) is better than 61.11% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 72.37%, FTS is in the better half of 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 | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% |
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.
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.
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.
The Altman-Z score of FTS (0.82) is better than 88.89% of its industry peers.
FTS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.33, FTS perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.73
WACC5.87%
2.3 Liquidity
FTS has a Current Ratio of 0.58. 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's Current ratio of 0.58 is on the low side compared to the rest of the industry. FTS is outperformed by 88.89% of its industry peers.
A Quick Ratio of 0.47 indicates that FTS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, FTS is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.89% over the past year.
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.
FTS shows a decrease in Revenue. In the last year, the revenue decreased by -0.08%.
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)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
3.2 Future
Based on estimates for the next years, FTS will show a small growth in Earnings Per Share. The EPS will grow by 5.85% on average per year.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
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.
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 21.24, FTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FTS indicates a rather expensive valuation: FTS more expensive than 88.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (26.34), we can say FTS is valued inline with the index average.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 20.18.
Based on the Price/Forward Earnings ratio, FTS is valued more expensive than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, FTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
FTS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. FTS is more expensive than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FTS may justify a higher PE ratio.
PEG (NY)3.3
PEG (5Y)4.18
EPS Next 2Y4.76%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.55%.
Compared to an average industry Dividend Yield of 3.97, FTS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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
FTS pays out 49.62% 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.
DP49.62%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
TSX:FTS (11/11/2025, 7:00:00 PM)
72.64
+0.63 (+0.87%)
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 Cap36.72B
Revenue(TTM)11.51B
Net Income(TTM)1.70B
Analysts64.76
Price Target72.64 (0%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.78%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)3.2%
Min EPS beat(4)1.1%
Max EPS beat(4)7.39%
EPS beat(8)8
Avg EPS beat(8)2.61%
EPS beat(12)11
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)1.01%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.3%
Revenue beat(4)1
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-4.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)0.41%
PT rev (3m)3.64%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 20.18 | ||
| P/S | 3.09 | ||
| P/FCF | N/A | ||
| P/OCF | 8.5 | ||
| P/B | 1.55 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)3.42
EY4.71%
EPS(NY)3.6
Fwd EY4.96%
FCF(TTM)-3.49
FCFYN/A
OCF(TTM)8.54
OCFY11.76%
SpS23.49
BVpS46.74
TBVpS18.81
PEG (NY)3.3
PEG (5Y)4.18
Graham Number59.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.19% | ||
| ROCE | 5.15% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.28% | ||
| ROICexgc | 5.43% | ||
| OM | 28.9% | ||
| PM (TTM) | 14.31% | ||
| GM | 72.37% | ||
| 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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.78 | ||
| Cap/Depr | 302.94% | ||
| Cap/Sales | 51.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 0.82 |
F-Score5
WACC5.87%
ROIC/WACC0.73
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)-0.08%
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 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18.17%
FCF growth 1Y-175.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.44%
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 6 / 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 21.24 and the Price/Book (PB) ratio is 1.55.
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 49.62%.