FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
70 CAD
-0.65 (-0.92%)
We assign a fundamental rating of 3 out of 10 to FTS. FTS was compared to 18 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS while its profitability can be described as average. While showing a medium growth rate, FTS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
FTS had a positive operating cash flow in the past year.
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
FTS has a Return On Assets (2.33%) which is in line with its industry peers.
FTS has a Return On Equity (7.19%) which is in line with its industry peers.
FTS has a Return On Invested Capital of 4.27%. This is comparable to the rest of the industry: FTS outperforms 55.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 4.02%.
The 3 year average ROIC (4.10%) for FTS is below the current ROIC(4.27%), indicating increased profibility in the last year.
| 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
FTS's Profit Margin of 14.31% is in line compared 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's Operating Margin of 28.90% is fine compared to the rest of the industry. FTS outperforms 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.
With a decent Gross Margin value of 72.37%, 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 | 28.9% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTS is destroying value.
Compared to 1 year ago, FTS has more shares outstanding
FTS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FTS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that FTS is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.81, FTS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 | 0.81 |
ROIC/WACC0.73
WACC5.83%
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.
The Current ratio of FTS (0.58) is worse than 88.89% of its industry peers.
FTS has a Quick 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.
The Quick ratio of FTS (0.47) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.86% over the past year.
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 4.22%.
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)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
3.2 Future
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.70% yearly.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
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.
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 20.35 indicates a rather expensive valuation of FTS.
Based on the Price/Earnings ratio, FTS is valued more expensive than 88.89% of the companies in the same industry.
FTS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.38, FTS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, FTS is valued more expensive than 88.89% of the companies in the same industry.
FTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS indicates a rather expensive valuation: FTS more expensive than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.62 |
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.
The decent profitability rating of FTS may justify a higher PE ratio.
PEG (NY)2.92
PEG (5Y)4
EPS Next 2Y4.95%
EPS Next 3Y4.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.40%, FTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.86, FTS has a dividend in line with its industry peers.
FTS's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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.
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.
DP49.62%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
TSX:FTS (10/29/2025, 7:00:00 PM)
70
-0.65 (-0.92%)
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 Cap35.38B
Revenue(TTM)11.87B
Net Income(TTM)1.70B
Analysts64.76
Price Target72.34 (3.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)0.22%
PT rev (3m)3.21%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 19.38 | ||
| P/S | 2.98 | ||
| P/FCF | N/A | ||
| P/OCF | 8.2 | ||
| P/B | 1.5 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)3.44
EY4.91%
EPS(NY)3.61
Fwd EY5.16%
FCF(TTM)-3.49
FCFYN/A
OCF(TTM)8.54
OCFY12.2%
SpS23.49
BVpS46.74
TBVpS18.81
PEG (NY)2.92
PEG (5Y)4
Graham Number60.15
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 | 0.81 |
F-Score5
WACC5.83%
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)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
EPS Next Y6.96%
EPS Next 2Y4.95%
EPS Next 3Y4.98%
EPS Next 5Y5.7%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year4.8%
Revenue Next 2Y4.44%
Revenue Next 3Y4.85%
Revenue Next 5Y3.62%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18%
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 20.35 and the Price/Book (PB) ratio is 1.5.
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%.