FORTIS INC (FTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTS - CA3495531079 - Common Stock
53.37 USD
-0.33 (-0.61%)
53.37 USD
0 (0%)
Overall FTS gets a fundamental rating of 3 out of 10. We evaluated FTS against 46 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 valued expensive and it does not seem to be growing. 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.
- FTS had positive earnings in each of the past 5 years.
- FTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FTS has a Return On Assets of 2.27%. This is in the lower half of the industry: FTS underperforms 78.26% of its industry peers.
- Looking at the Return On Equity, with a value of 6.97%, FTS is doing worse than 82.61% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.20%, FTS is in line with its industry, outperforming 52.17% 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 4.58%.
- 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
- FTS has a Profit Margin of 14.02%. This is comparable to the rest of the industry: FTS outperforms 52.17% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of FTS has remained more or less at the same level.
- FTS has a better Gross Margin (72.57%) than 69.57% 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
- FTS has more shares outstanding than it did 5 years ago.
- FTS has a worse debt/assets ratio than last year.
2.2 Solvency
- FTS has an Altman-Z score of 0.83. This is a bad value and indicates that FTS is not financially healthy and even has some risk of bankruptcy.
- FTS's Altman-Z score of 0.83 is in line compared to the rest of the industry. FTS outperforms 52.17% of its industry peers.
- 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 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.75
WACC5.61%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that FTS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.66, FTS is doing worse than 80.43% of the companies in the same industry.
- A Quick Ratio of 0.54 indicates that FTS may have some problems paying its short term obligations.
- FTS has a worse Quick ratio (0.54) than 71.74% 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 7.26% over the past year.
- FTS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
- 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)7.26%
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
- Based on estimates for the next years, FTS will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
- FTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y7.47%
EPS Next 2Y5.33%
EPS Next 3Y5.59%
EPS Next 5Y6.03%
Revenue Next Year7.37%
Revenue Next 2Y6.09%
Revenue Next 3Y7.06%
Revenue Next 5Y3.8%
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
- The Price/Earnings ratio is 21.43, which indicates a rather expensive current valuation of FTS.
- Based on the Price/Earnings ratio, FTS is valued a bit more expensive than 71.74% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FTS to the average of the S&P500 Index (28.82), we can say FTS is valued slightly cheaper.
- FTS is valuated rather expensively with a Price/Forward Earnings ratio of 20.06.
- 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 73.91% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, FTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTS indicates a slightly more expensive valuation: FTS is more expensive than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.81 |
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)4.22
EPS Next 2Y5.33%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
- FTS has a Yearly Dividend Yield of 3.55%.
- FTS's Dividend Yield is a higher than the industry average which is at 2.90.
- FTS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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
- 50.83% of the earnings are spent on dividend by FTS. 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 2Y5.33%
EPS Next 3Y5.59%
FORTIS INC / FTS FAQ
What is the fundamental rating for FTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to FTS.
What is the valuation status of FORTIS INC (FTS) stock?
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.
Can you provide the expected EPS growth for FTS stock?
The Earnings per Share (EPS) of FORTIS INC (FTS) is expected to grow by 7.47% in the next year.
Can you provide the dividend sustainability for FTS stock?
The dividend rating of FORTIS INC (FTS) is 7 / 10 and the dividend payout ratio is 50.83%.