FORTIS INC (FTS) Stock Fundamental Analysis
USA - NYSE:FTS - CA3495531079 - Common Stock
52.27 USD
-0.06 (-0.11%)
52.27 USD
0 (0%)
Taking everything into account, FTS scores 3 out of 10 in our fundamental rating. FTS was compared to 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. 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.
FTS had a positive operating cash flow in the past year.
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
FTS has a worse Return On Assets (2.27%) than 80.85% of its industry peers.
With a Return On Equity value of 6.97%, FTS is not doing good in the industry: 80.85% of the companies in the same industry are doing better.
FTS's Return On Invested Capital of 4.20% is in line compared to the rest of the industry. FTS outperforms 51.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTS is in line with the industry average of 5.02%.
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
With a Profit Margin value of 14.02%, FTS perfoms like the industry average, outperforming 53.19% of the companies in the same industry.
FTS's Profit Margin has declined in the last couple of years.
FTS has a Operating Margin of 28.97%. This is amongst the best in the industry. FTS outperforms 95.74% of its industry peers.
FTS's Operating Margin has been stable in the last couple of years.
FTS's Gross Margin of 72.57% is fine compared to the rest of the industry. FTS outperforms 72.34% 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.
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
Compared to 1 year ago, FTS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that FTS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, FTS is in line with its industry, outperforming 44.68% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that FTS has dependencies on debt financing.
FTS has a Debt to Equity ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.76
WACC5.52%
2.3 Liquidity
A Current Ratio of 0.66 indicates that FTS may have some problems paying its short term obligations.
The Current ratio of FTS (0.66) is worse than 78.72% of its industry peers.
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.
With a Quick ratio value of 0.54, FTS is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
| 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.
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 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
The Earnings Per Share is expected to grow by 5.85% on average over the next years.
Based on estimates for the next years, FTS will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
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
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
A Price/Earnings ratio of 21.42 indicates a rather expensive valuation of FTS.
FTS's Price/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.
Compared to an average S&P500 Price/Earnings ratio of 25.89, FTS is valued at the same level.
The Price/Forward Earnings ratio is 20.34, which indicates a rather expensive current valuation of FTS.
FTS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FTS is more expensive than 74.47% of the companies in the same industry.
FTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTS is valued a bit more expensive than the industry average as 61.70% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.79 |
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)3.33
PEG (5Y)4.22
EPS Next 2Y4.76%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, FTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.22, FTS pays a bit more dividend than its industry peers.
FTS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 2Y4.76%
EPS Next 3Y5.06%
52.27
-0.06 (-0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change-0.01%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap26.42B
Revenue(TTM)12.04B
Net Income(TTM)1.69B
Analysts64.76
Price Target51.79 (-0.92%)
Short Float %1.62%
Short Ratio13.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)0.35%
PT rev (3m)0.2%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 20.34 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 9.24 | ||
| P/B | 1.53 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 12.79 |
EPS(TTM)2.44
EY4.67%
EPS(NY)2.57
Fwd EY4.92%
FCF(TTM)-3.15
FCFYN/A
OCF(TTM)5.66
OCFY10.83%
SpS17.01
BVpS34.19
TBVpS13.85
PEG (NY)3.33
PEG (5Y)4.22
Graham Number43.32
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 | 0.83 |
F-Score4
WACC5.52%
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 21.42 and the Price/Book (PB) ratio is 1.53.
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%.