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Market Cap

CA$25.7b

Last Updated

2021/04/10 22:11 UTC

Data Sources

Company Financials +

Executive Summary

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. More Details


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Fortis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FTS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FTS's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

FTS

1.4%

CA Electric Utilities

0.9%

CA Market


1 Year Return

-1.1%

FTS

6.9%

CA Electric Utilities

39.2%

CA Market

Return vs Industry: FTS underperformed the Canadian Electric Utilities industry which returned 6.9% over the past year.

Return vs Market: FTS underperformed the Canadian Market which returned 39.2% over the past year.


Shareholder returns

FTSIndustryMarket
7 Day0.6%1.4%0.9%
30 Day5.3%5.9%3.0%
90 Day7.1%2.7%7.5%
1 Year2.7%-1.1%10.6%6.9%43.9%39.2%
3 Year45.9%30.5%30.9%19.7%32.5%19.8%
5 Year65.5%37.5%37.4%17.6%59.3%35.1%

Long-Term Price Volatility Vs. Market

How volatile is Fortis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fortis undervalued compared to its fair value and its price relative to the market?

21.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FTS (CA$54.92) is trading above our estimate of fair value (CA$52.57)

Significantly Below Fair Value: FTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FTS is good value based on its PE Ratio (21.1x) compared to the XN Electric Utilities industry average (21.3x).

PE vs Market: FTS is poor value based on its PE Ratio (21.1x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: FTS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: FTS is good value based on its PB Ratio (1.5x) compared to the XN Electric Utilities industry average (1.9x).


Future Growth

How is Fortis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTS's forecast earnings growth (7.1% per year) is above the savings rate (1.5%).

Earnings vs Market: FTS's earnings (7.1% per year) are forecast to grow slower than the Canadian market (21.7% per year).

High Growth Earnings: FTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: FTS's revenue (3.8% per year) is forecast to grow slower than the Canadian market (7.2% per year).

High Growth Revenue: FTS's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FTS's Return on Equity is forecast to be low in 3 years time (7.8%).


Past Performance

How has Fortis performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTS has high quality earnings.

Growing Profit Margin: FTS's current net profit margins (13.5%) are lower than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: FTS's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: FTS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FTS had negative earnings growth (-26.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (-2.1%).


Return on Equity

High ROE: FTS's Return on Equity (6.8%) is considered low.


Financial Health

How is Fortis's financial position?


Financial Position Analysis

Short Term Liabilities: FTS's short term assets (CA$2.6B) do not cover its short term liabilities (CA$4.1B).

Long Term Liabilities: FTS's short term assets (CA$2.6B) do not cover its long term liabilities (CA$31.0B).


Debt to Equity History and Analysis

Debt Level: FTS's debt to equity ratio (120.8%) is considered high.

Reducing Debt: FTS's debt to equity ratio has increased from 113.3% to 120.8% over the past 5 years.

Debt Coverage: FTS's debt is not well covered by operating cash flow (11%).

Interest Coverage: FTS's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Fortis's current dividend yield, its reliability and sustainability?

3.69%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 11 2021Ex Dividend DateMay 14 2021Dividend Pay DateJun 01 202118 days from Ex DividendBuy in the next 33 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: FTS's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Canadian market (1.47%).

High Dividend: FTS's dividend (3.68%) is low compared to the top 25% of dividend payers in the Canadian market (4.73%).


Stability and Growth of Payments

Stable Dividend: FTS's dividends per share have been stable in the past 10 years.

Growing Dividend: FTS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.5%), FTS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FTS's dividends in 3 years are forecast to be covered by earnings (73.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Dave Hutchens (53 yo)

0.25

Tenure

CA$5,447,476

Compensation

Mr. David Gerard Hutchens, also known as Dave, serves as President, Chief Executive officer and Director at Fortis Inc. since January 1, 2021. He had been Chief Operating Officer of Fortis Inc. since Janua...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.33M) is below average for companies of similar size in the Canadian market ($USD7.19M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FTS's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: FTS's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FTS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fortis Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortis Inc.
  • Ticker: FTS
  • Exchange: TSX
  • Founded: 1885
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CA$25.696b
  • Shares outstanding: 469.00m
  • Website: https://www.fortisinc.com

Number of Employees


Location

  • Fortis Inc.
  • Fortis Place
  • Suite 1100
  • St. John's
  • Newfoundland and Labrador
  • A1E 0E4
  • Canada

Listings


Biography

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 433,000 retail c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 22:11
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.