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FTS

FortisTSX:FTS Stock Report

Market Cap

CA$26.6b

7D

-2.2%

1Y

3.6%

Updated

27 Sep, 2021

Data

Company Financials +
FTS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health0/6
Dividends5/6

FTS Overview

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

Fortis Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fortis
Historical stock prices
Current Share PriceCA$56.45
52 Week HighCA$48.97
52 Week LowCA$59.25
Beta0.062
1 Month Change-2.17%
3 Month Change2.17%
1 Year Change3.56%
3 Year Change35.24%
5 Year Change35.93%
Change since IPO914.83%

Recent News & Updates

Aug 15
The Returns At Fortis (TSE:FTS) Aren't Growing

The Returns At Fortis (TSE:FTS) Aren't Growing

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Aug 02
Is Fortis (TSE:FTS) A Risky Investment?

Is Fortis (TSE:FTS) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Jul 05
Calculating The Fair Value Of Fortis Inc. (TSE:FTS)

Calculating The Fair Value Of Fortis Inc. (TSE:FTS)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fortis Inc. ( TSE:FTS...

Shareholder Returns

FTSCA Electric UtilitiesCA Market
7D-2.2%-2.1%1.8%
1Y3.6%11.2%29.7%

Return vs Industry: FTS underperformed the Canadian Electric Utilities industry which returned 11.2% over the past year.

Return vs Market: FTS underperformed the Canadian Market which returned 29.7% over the past year.

Price Volatility

Is FTS's price volatile compared to industry and market?
FTS volatility
FTS Beta0.062
Industry Beta0.43
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
18859,000Dave Hutchenshttps://www.fortisinc.com

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 customers in southeastern Arizona; and 98,000 retail customers in Arizona’s Mohave and Santa Cruz counties with an aggregate capacity of 3,233 megawatts (MW), including 59 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,048,000 residential, commercial, and industrial customers in British Columbia, Canada.

Fortis Fundamentals Summary

How do Fortis's earnings and revenue compare to its market cap?
FTS fundamental statistics
Market CapCA$26.60b
Earnings (TTM)CA$1.23b
Revenue (TTM)CA$9.14b

21.6x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTS income statement (TTM)
RevenueCA$9.14b
Cost of RevenueCA$5.21b
Gross ProfitCA$3.92b
ExpensesCA$2.69b
EarningsCA$1.23b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)2.61
Gross Margin42.94%
Net Profit Margin13.47%
Debt/Equity Ratio121.5%

How did FTS perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTS (CA$56.45) is trading below our estimate of fair value (CA$115.02)

Significantly Below Fair Value: FTS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FTS is poor value based on its PE Ratio (21.6x) compared to the North American Electric Utilities industry average (21.2x).

PE vs Market: FTS is poor value based on its PE Ratio (21.6x) compared to the Canadian market (12.6x).


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 14 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTS's forecast earnings growth (7.3% per year) is above the savings rate (1.5%).

Earnings vs Market: FTS's earnings (7.3% per year) are forecast to grow slower than the Canadian market (12% per year).

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

Revenue vs Market: FTS's revenue (2.7% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: FTS's revenue (2.7% 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 (8%).


Past Performance

How has Fortis performed over the past 5 years?

15.6%

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 (13.7%).


Past Earnings Growth Analysis

Earnings Trend: FTS's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: FTS's earnings growth over the past year (1.7%) is below its 5-year average (15.6% per year).

Earnings vs Industry: FTS earnings growth over the past year (1.7%) exceeded the Electric Utilities industry 1.2%.


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$3.0B) do not cover its short term liabilities (CA$3.5B).

Long Term Liabilities: FTS's short term assets (CA$3.0B) do not cover its long term liabilities (CA$31.9B).


Debt to Equity History and Analysis

Debt Level: FTS's debt to equity ratio (121.5%) is considered high.

Reducing Debt: FTS's debt to equity ratio has increased from 114.8% to 121.5% over the past 5 years.

Debt Coverage: FTS's debt is not well covered by operating cash flow (11.5%).

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?

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FTS's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: FTS's dividend (3.58%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


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: At its current payout ratio (75.6%), FTS's 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 (74.6% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Dave Hutchens (54 yo)

0.67

Tenure

CA$6,549,751

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD5.18M) is about average for companies of similar size in the Canadian market ($USD5.89M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FTS's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: FTS's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$26.602b
  • Shares outstanding: 471.26m
  • Website: https://www.fortisinc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:59
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.