FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTS - CA3495531079 - Common Stock
71.36 CAD
+0.05 (+0.07%)
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 16 industry peers in the Electric Utilities industry. While FTS is still in line with the averages on profitability rating, there are concerns on its financial health. FTS is valied quite expensively at the moment, while it does show a decent growth rate. Finally FTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FTS had positive earnings in the past year.
In the past year FTS had a positive cash flow from operations.
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 93.75% of the companies in the same industry.
FTS's Return On Equity of 6.97% is on the low side compared to the rest of the industry. FTS is outperformed by 93.75% of its industry peers.
With a Return On Invested Capital value of 4.20%, FTS perfoms like the industry average, outperforming 56.25% 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 4.02%.
The last Return On Invested Capital (4.20%) for FTS is above the 3 year average (4.10%), which is a sign of increasing profitability.
| 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
The Profit Margin of FTS (14.02%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FTS has declined.
With a decent Operating Margin value of 28.97%, FTS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
FTS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 72.57%, FTS is in the better half of the industry, outperforming 62.50% 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 | 28.97% | ||
| 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
FTS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FTS has more shares outstanding than it did 1 year ago.
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.
Looking at the Altman-Z score, with a value of 0.81, FTS belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
FTS has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
FTS has a better Debt to Equity ratio (1.35) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.72
WACC5.82%
2.3 Liquidity
A Current Ratio of 0.66 indicates that FTS may have some problems paying its short term obligations.
FTS's Current ratio of 0.66 is on the low side compared to the rest of the industry. FTS is outperformed by 87.50% 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.
With a Quick ratio value of 0.54, FTS is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.26% 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.
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 6.39% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
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 accelerating.
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
With a Price/Earnings ratio of 20.99, FTS is valued on the expensive side.
87.50% of the companies in the same industry are cheaper than FTS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, FTS is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.62 indicates a rather expensive valuation of FTS.
Based on the Price/Forward Earnings ratio, FTS is valued more expensive than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, FTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued expensively inside the industry as 87.50% of the companies are valued cheaper.
| 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.
PEG (NY)2.87
PEG (5Y)4.13
EPS Next 2Y5.32%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 5.75%, which is a nice return.
Compared to an average industry Dividend Yield of 5.32, FTS pays a better dividend. On top of this FTS pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, FTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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
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 2Y5.32%
EPS Next 3Y5.62%
TSX:FTS (12/31/2025, 7:00:00 PM)
71.36
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners56.48%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap36.07B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts65.71
Price Target75.66 (6.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend1.65
Dividend Growth(5Y)5.61%
DP50.83%
Div Incr Years25
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-5.22%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-5.22%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)1.7%
EPS beat(12)10
Avg EPS beat(12)2.25%
EPS beat(16)11
Avg EPS beat(16)0.79%
Revenue beat(2)2
Avg Revenue beat(2)1.8%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-3.45%
Revenue beat(12)4
Avg Revenue beat(12)-0.61%
Revenue beat(16)8
Avg Revenue beat(16)1.43%
PT rev (1m)0.97%
PT rev (3m)4.82%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.62 | ||
| P/S | 3 | ||
| P/FCF | N/A | ||
| P/OCF | 9 | ||
| P/B | 1.49 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)3.4
EY4.76%
EPS(NY)3.64
Fwd EY5.1%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)7.93
OCFY11.11%
SpS23.82
BVpS47.88
TBVpS19.4
PEG (NY)2.87
PEG (5Y)4.13
Graham Number60.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 6.97% | ||
| ROCE | 5.06% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 5.33% | ||
| OM | 28.97% | ||
| PM (TTM) | 14.02% | ||
| GM | 72.57% | ||
| 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.92 | ||
| Cap/Depr | 304.79% | ||
| Cap/Sales | 51.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.81 |
F-Score4
WACC5.82%
ROIC/WACC0.72
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)7.26%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-4.71%
EPS Next Y7.31%
EPS Next 2Y5.32%
EPS Next 3Y5.62%
EPS Next 5Y6.39%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.98%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year74.46%
EBIT Next 3Y26%
EBIT Next 5Y18.99%
FCF growth 1Y-510.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.21%
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.
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 7.31% in the next year.
Can you provide the dividend sustainability for FTS stock?
The dividend rating of FORTIS INC (FTS.CA) is 8 / 10 and the dividend payout ratio is 50.83%.