FORTIS INC (FTS) Stock Fundamental Analysis
USA - NYSE:FTS - CA3495531079 - Common Stock
50.53 USD
+0.34 (+0.68%)
50.53 USD
0 (0%)
FTS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 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. While showing a medium growth rate, FTS is valued expensive at the moment.
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.
In the past 5 years FTS always reported a positive cash flow from operatings.
1.2 Ratios
FTS's Return On Assets of 2.33% is on the low side compared to the rest of the industry. FTS is outperformed by 72.34% of its industry peers.
Looking at the Return On Equity, with a value of 7.19%, FTS is doing worse than 74.47% of the companies in the same industry.
FTS's Return On Invested Capital of 4.27% is in line compared to the rest of the industry. FTS outperforms 55.32% of its industry peers.
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 4.89%.
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 95.74% of its industry peers.
In the last couple of years the Operating Margin of FTS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 72.37%, FTS is in the better half of the industry, outperforming 72.34% 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 | 28.9% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FTS is destroying value.
The number of shares outstanding for FTS has been increased compared to 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 0.81. 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 (0.81) which is comparable to the rest of the industry.
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 of 1.33. This is comparable to the rest of the industry: FTS outperforms 55.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.78
WACC5.48%
2.3 Liquidity
A Current Ratio of 0.58 indicates that FTS may have some problems paying its short term obligations.
FTS has a Current ratio of 0.58. This is in the lower half of the industry: FTS underperforms 78.72% 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 76.60% 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.
FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
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
FTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.70% yearly.
FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
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
Based on the Price/Earnings ratio of 20.46, the valuation of FTS can be described as rather expensive.
FTS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, FTS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.48, FTS is valued on the expensive side.
FTS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FTS is more expensive than 68.09% of the companies in the same industry.
FTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.61 |
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)2.94
PEG (5Y)4.03
EPS Next 2Y4.95%
EPS Next 3Y4.98%
5. Dividend
5.1 Amount
FTS has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, FTS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, FTS pays a bit more dividend than the S&P500 average.
| 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.61%
Div Incr Years21
Div Non Decr Years21
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 2Y4.95%
EPS Next 3Y4.98%
50.53
+0.34 (+0.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change0.03%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap25.54B
Revenue(TTM)11.87B
Net Income(TTM)1.70B
Analysts64.76
Price Target51.93 (2.77%)
Short Float %1.62%
Short Ratio13.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend1.18
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)-0.54%
PT rev (3m)1.62%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 19.48 | ||
| P/S | 3 | ||
| P/FCF | N/A | ||
| P/OCF | 8.24 | ||
| P/B | 1.51 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)2.47
EY4.89%
EPS(NY)2.59
Fwd EY5.13%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)6.13
OCFY12.14%
SpS16.86
BVpS33.56
TBVpS13.5
PEG (NY)2.94
PEG (5Y)4.03
Graham Number43.19
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
WACC5.48%
ROIC/WACC0.78
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 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 20.46 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 49.62%.