FORTIS INC (FTS.CA) Stock Fundamental Analysis
Canada - TSX:FTS - CA3495531079 - Common Stock
67.38 CAD
-0.14 (-0.21%)
Overall FTS gets a fundamental rating of 4 out of 10. We evaluated FTS against 18 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 quite expensive at the moment. It does show a decent growth rate. FTS also has an excellent dividend rating.
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
The Return On Assets of FTS (2.33%) is comparable to the rest of the industry.
FTS's Return On Equity of 7.19% is in line compared to the rest of the industry. FTS outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.27%, FTS is in line with its industry, outperforming 55.56% 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 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.
FTS's Profit Margin has declined in the last couple of years.
FTS's Operating Margin of 28.90% is fine compared to the rest of the industry. FTS outperforms 61.11% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
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
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.
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
FTS has an Altman-Z score of 0.79. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
FTS has a Altman-Z score of 0.79. This is amongst the best in the industry. FTS outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that FTS has dependencies on debt financing.
FTS has a Debt to Equity ratio of 1.33. This is comparable to the rest of the industry: FTS outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.72
WACC5.92%
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.
Looking at the Current ratio, with a value of 0.58, FTS is doing worse than 88.89% of the companies in the same industry.
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.
FTS's Quick ratio of 0.47 is on the low side compared to the rest of the industry. FTS is outperformed by 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.
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 small growth in Revenue. In the last year, the Revenue has grown by 4.22%.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
The Earnings Per Share is expected to grow by 5.63% 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 3.53% yearly.
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue Next Year7.11%
Revenue Next 2Y5.79%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
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
FTS is valuated rather expensively with a Price/Earnings ratio of 19.59.
Based on the Price/Earnings ratio, FTS is valued expensively inside the industry as 88.89% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 27.41, FTS is valued a bit cheaper.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 18.58.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of FTS to the average of the S&P500 Index (22.88), we can say FTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 18.58 |
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 | 12.35 |
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)2.64
PEG (5Y)3.85
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, FTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.26, FTS pays a better dividend. On top of this FTS pays more dividend than 94.44% of the companies listed in the same industry.
FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
49.62% of the earnings are spent on dividend by FTS. 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 2Y5.14%
EPS Next 3Y5.24%
TSX:FTS (9/18/2025, 7:00:00 PM)
67.38
-0.14 (-0.21%)
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 Cap33.94B
Analysts64.76
Price Target72.18 (7.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)1.83%
PT rev (3m)2.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.3%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 18.58 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 7.86 | ||
| P/B | 1.44 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)3.44
EY5.11%
EPS(NY)3.63
Fwd EY5.38%
FCF(TTM)-3.5
FCFYN/A
OCF(TTM)8.57
OCFY12.72%
SpS23.57
BVpS46.91
TBVpS18.87
PEG (NY)2.64
PEG (5Y)3.85
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%
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 | 1.33 | ||
| 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 | 0.79 |
F-Score5
WACC5.92%
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)8.86%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%13.43%
EPS Next Y7.43%
EPS Next 2Y5.14%
EPS Next 3Y5.24%
EPS Next 5Y5.63%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%5.43%
Revenue Next Year7.11%
Revenue Next 2Y5.79%
Revenue Next 3Y9.98%
Revenue Next 5Y3.53%
EBIT growth 1Y6.75%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year73.58%
EBIT Next 3Y25.68%
EBIT Next 5Y17.7%
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%