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. 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
In the past year FTS was profitable.
FTS had a positive operating cash flow in the past year.
Each year in the past 5 years FTS has been profitable.
FTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTS has a Return On Assets (2.19%) which is in line with its industry peers.
The Return On Equity of FTS (6.75%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.06%, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTS is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROIC | 4.06% |
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
With a Profit Margin value of 13.96%, FTS perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Profit Margin of FTS has declined.
FTS's Operating Margin of 28.61% is fine compared to the rest of the industry. FTS outperforms 63.16% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 71.77%, FTS is doing good in 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 | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 0.74, we must say that FTS is in the distress zone and has some risk of bankruptcy.
FTS's Altman-Z score of 0.74 is amongst the best of the industry. FTS outperforms 89.47% 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.
The Debt to Equity ratio of FTS (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.71
WACC5.76%
2.3 Liquidity
FTS has a Current Ratio of 0.63. 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 0.63. This is amonst the worse of the industry: FTS underperforms 89.47% of its industry peers.
A Quick Ratio of 0.52 indicates that FTS may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, FTS is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.37%.
The Earnings Per Share has been growing slightly by 5.13% on average over the past years.
The Revenue has decreased by -0.08% 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)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
3.2 Future
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.36% yearly.
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
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
A Price/Earnings ratio of 19.51 indicates a rather expensive valuation of FTS.
Compared to the rest of the industry, the Price/Earnings ratio of FTS indicates a rather expensive valuation: FTS more expensive than 84.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. FTS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.66, the valuation of FTS can be described as rather expensive.
89.47% 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 22.10. FTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
FTS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. FTS is more expensive than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.53 |
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)4.19
PEG (5Y)3.81
EPS Next 2Y4.57%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.45, FTS has a dividend in line with its industry peers.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
TSX:FTS (3/7/2025, 7:00:00 PM)
64.2
+1.7 (+2.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap32.06B
Analysts51.43
Price Target65.15 (1.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.93%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.35%
Min EPS beat(2)2.18%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)2.38%
Min EPS beat(4)1.71%
Max EPS beat(4)3.11%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)9
Avg EPS beat(12)1.75%
EPS beat(16)10
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-10.22%
Max Revenue beat(2)-5.78%
Revenue beat(4)0
Avg Revenue beat(4)-6.49%
Min Revenue beat(4)-10.22%
Max Revenue beat(4)-2.48%
Revenue beat(8)1
Avg Revenue beat(8)-4.18%
Revenue beat(12)5
Avg Revenue beat(12)0.82%
Revenue beat(16)9
Avg Revenue beat(16)1.67%
PT rev (1m)3.68%
PT rev (3m)3.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.43%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 18.66 | ||
| P/S | 2.79 | ||
| P/FCF | N/A | ||
| P/OCF | 8.26 | ||
| P/B | 1.35 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)3.29
EY5.12%
EPS(NY)3.44
Fwd EY5.36%
FCF(TTM)-2.68
FCFYN/A
OCF(TTM)7.77
OCFY12.11%
SpS23.05
BVpS47.68
TBVpS18.1
PEG (NY)4.19
PEG (5Y)3.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.75% | ||
| ROCE | 4.88% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.08% | ||
| ROICexgc | 5.22% | ||
| OM | 28.61% | ||
| PM (TTM) | 13.96% | ||
| GM | 71.77% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 270.78% | ||
| Cap/Sales | 45.34% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 74.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.74 |
F-Score4
WACC5.76%
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)6.37%
EPS 3Y8.27%
EPS 5Y5.13%
EPS Q2Q%16.23%
EPS Next Y4.66%
EPS Next 2Y4.57%
EPS Next 3Y5.08%
EPS Next 5Y4.8%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%3.63%
Revenue Next Year8.89%
Revenue Next 2Y6.34%
Revenue Next 3Y5.52%
Revenue Next 5Y2.36%
EBIT growth 1Y6.74%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.53%
EBIT Next 3Y25.25%
EBIT Next 5Y16.49%
FCF growth 1Y-114.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.51%
OCF growth 3Y10.12%
OCF growth 5Y7.71%