FORTIS INC (FTS) Stock Fundamental Analysis
USA - NYSE:FTS - CA3495531079 - Common Stock
51.47 USD
-0.04 (-0.08%)
51.47 USD
0 (0%)
FTS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of FTS while its profitability can be described as average. FTS has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years FTS has been profitable.
Each year in the past 5 years FTS had a positive operating cash flow.
1.2 Ratios
FTS's Return On Assets of 2.27% is on the low side compared to the rest of the industry. FTS is outperformed by 80.43% of its industry peers.
FTS has a worse Return On Equity (6.97%) than 82.61% of its industry peers.
The Return On Invested Capital of FTS (4.20%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTS is in line with the industry average of 5.00%.
The 3 year average ROIC (4.10%) for FTS is below the current ROIC(4.20%), indicating increased profibility in the last year.
| 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
FTS has a Profit Margin (14.02%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FTS has declined.
Looking at the Operating Margin, with a value of 28.97%, FTS belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
FTS's Operating Margin has been stable in the last couple of years.
FTS has a better Gross Margin (72.57%) than 71.74% of its industry peers.
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
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
The number of shares outstanding for FTS has been increased compared to 5 years ago.
Compared to 1 year ago, FTS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that FTS is in the distress zone and has some risk of bankruptcy.
FTS has a Altman-Z score (0.82) which is comparable to the rest of the 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 Debt to Equity ratio (1.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.76
WACC5.5%
2.3 Liquidity
FTS has a Current 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 Current ratio value of 0.66, FTS is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
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.
The Quick ratio of FTS (0.54) is worse than 69.57% of its industry peers.
| 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 7.89% over the past year.
The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
FTS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.21%.
FTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
3.2 Future
Based on estimates for the next years, FTS will show a small growth in Earnings Per Share. The EPS will grow by 5.85% on average per year.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
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.
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
A Price/Earnings ratio of 21.09 indicates a rather expensive valuation of FTS.
Based on the Price/Earnings ratio, FTS is valued a bit more expensive than the industry average as 69.57% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.07, FTS is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.03, the valuation of FTS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FTS is valued a bit more expensive than the industry average as 73.91% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of FTS to the average of the S&P500 Index (34.08), we can say FTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 20.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued a bit more expensive than the industry average as 65.22% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.27
PEG (5Y)4.15
EPS Next 2Y4.76%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.49%.
FTS's Dividend Yield is comparable with the industry average which is at 3.77.
Compared to an average S&P500 Dividend Yield of 2.44, FTS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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 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 2Y4.76%
EPS Next 3Y5.06%
51.47
-0.04 (-0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change-0.18%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap26.02B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts64.76
Price Target51.79 (0.62%)
Short Float %2.19%
Short Ratio17.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend1.18
Dividend Growth(5Y)5.61%
DP50.83%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.27%
Min EPS beat(2)-2.85%
Max EPS beat(2)7.39%
EPS beat(4)3
Avg EPS beat(4)1.85%
Min EPS beat(4)-2.85%
Max EPS beat(4)7.39%
EPS beat(8)7
Avg EPS beat(8)2%
EPS beat(12)10
Avg EPS beat(12)2.45%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)2
Avg Revenue beat(2)2.92%
Min Revenue beat(2)1.3%
Max Revenue beat(2)4.54%
Revenue beat(4)2
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)4.54%
Revenue beat(8)2
Avg Revenue beat(8)-3.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.42%
Revenue beat(16)8
Avg Revenue beat(16)1.57%
PT rev (1m)-0.27%
PT rev (3m)-0.42%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)4.29%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 20.03 | ||
| P/S | 3.03 | ||
| P/FCF | N/A | ||
| P/OCF | 9.1 | ||
| P/B | 1.51 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.69 |
EPS(TTM)2.44
EY4.74%
EPS(NY)2.57
Fwd EY4.99%
FCF(TTM)-3.14
FCFYN/A
OCF(TTM)5.66
OCFY10.99%
SpS17
BVpS34.17
TBVpS13.85
PEG (NY)3.27
PEG (5Y)4.15
Graham Number43.31
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 | 0.82 |
F-Score4
WACC5.5%
ROIC/WACC0.76
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)7.89%
EPS 3Y8.19%
EPS 5Y5.08%
EPS Q2Q%-2.32%
EPS Next Y6.44%
EPS Next 2Y4.76%
EPS Next 3Y5.06%
EPS Next 5Y5.85%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y6.8%
Revenue growth 5Y5.55%
Sales Q2Q%8.35%
Revenue Next Year5.21%
Revenue Next 2Y4.5%
Revenue Next 3Y4.92%
Revenue Next 5Y3.76%
EBIT growth 1Y8.76%
EBIT growth 3Y10.06%
EBIT growth 5Y5.99%
EBIT Next Year71.64%
EBIT Next 3Y25.71%
EBIT Next 5Y18.17%
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 FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.
Can you provide the valuation status for FORTIS INC?
ChartMill assigns a valuation rating of 1 / 10 to FORTIS INC (FTS). This can be considered as Overvalued.
Can you provide the profitability details for FORTIS INC?
FORTIS INC (FTS) has a profitability rating of 5 / 10.
What is the valuation of FORTIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORTIS INC (FTS) is 21.09 and the Price/Book (PB) ratio is 1.51.
How sustainable is the dividend of FORTIS INC (FTS) stock?
The dividend rating of FORTIS INC (FTS) is 6 / 10 and the dividend payout ratio is 50.83%.