FORTIS INC (FTS) Stock Fundamental Analysis
USA - NYSE:FTS - CA3495531079 - Common Stock
49.04 USD
+0.06 (+0.12%)
49.0573 USD
+0.02 (+0.04%)
Taking everything into account, FTS scores 3 out of 10 in our fundamental rating. FTS was compared to 48 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. FTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FTS was profitable.
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
The Return On Assets of FTS (2.33%) is worse than 72.92% of its industry peers.
Looking at the Return On Equity, with a value of 7.19%, FTS is doing worse than 79.17% of the companies in the same industry.
FTS has a Return On Invested Capital (4.27%) which is comparable to the rest of the industry.
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 5.43%.
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.
FTS's Operating Margin of 28.90% is amongst the best of the industry. FTS outperforms 91.67% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
The Gross Margin of FTS (72.37%) is better than 72.92% of its industry peers.
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.
FTS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FTS has been increased compared to 5 years ago.
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 (0.79) which is in line with its industry peers.
FTS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FTS has a Debt to Equity ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.77
WACC5.56%
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 has a Current ratio of 0.58. This is in the lower half of the industry: FTS underperforms 79.17% 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.
FTS's Quick ratio of 0.47 is on the low side compared to the rest of the industry. FTS is outperformed by 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
FTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
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 4.22% in the past year.
The Revenue has been growing slightly by 5.55% on average over the past years.
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
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 19.62, FTS is valued on the expensive side.
Based on the Price/Earnings ratio, FTS is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.20. FTS is valued slightly cheaper when compared to this.
FTS is valuated rather expensively with a Price/Forward Earnings ratio of 18.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTS indicates a slightly more expensive valuation: FTS is more expensive than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. FTS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.36 |
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)2.64
PEG (5Y)3.86
EPS Next 2Y5.14%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, FTS pays a bit more dividend than its industry peers.
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 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 Years21
Div Non Decr Years21
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 2Y5.14%
EPS Next 3Y5.24%
49.04
+0.06 (+0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.26%
Inst Owner Change-0.39%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap24.70B
Analysts64.76
Price Target52.22 (6.48%)
Short Float %1.61%
Short Ratio14.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.19
Dividend Growth(5Y)5.61%
DP49.62%
Div Incr Years21
Div Non Decr Years21
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)0.4%
PT rev (3m)1.99%
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 | 19.62 | ||
| Fwd PE | 18.6 | ||
| P/S | 2.86 | ||
| P/FCF | N/A | ||
| P/OCF | 7.87 | ||
| P/B | 1.44 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)2.5
EY5.1%
EPS(NY)2.64
Fwd EY5.38%
FCF(TTM)-2.54
FCFYN/A
OCF(TTM)6.23
OCFY12.71%
SpS17.14
BVpS34.11
TBVpS13.72
PEG (NY)2.64
PEG (5Y)3.86
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
WACC5.56%
ROIC/WACC0.77
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%