Executive Summary
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
Snowflake Analysis
Established dividend payer with proven track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.7%
FTS
5.3%
CA Electric Utilities
2.7%
CA Market
1 Year Return
3.8%
FTS
3.3%
CA Electric Utilities
-11.5%
CA Market
Return vs Industry: FTS exceeded the Canadian Electric Utilities industry which returned 2% over the past year.
Return vs Market: FTS exceeded the Canadian Market which returned -11% over the past year.
Shareholder returns
| FTS | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 5.3% | 2.7% |
| 30 Day | -1.7% | 2.3% | 1.6% |
| 90 Day | -2.4% | -5.6% | -8.4% |
| 1 Year | 7.1%3.8% | 6.6%3.3% | -8.5%-11.5% |
| 3 Year | 31.0%17.7% | 21.8%10.0% | -0.5%-9.8% |
| 5 Year | 75.3%46.0% | 68.0%40.7% | 14.6%-2.4% |
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
5 days ago | Simply Wall St
Independent Corporate Director Margarita Dilley Just Bought A Handful Of Shares In Fortis Inc. (TSE:FTS)1 week ago | Simply Wall St
Could Fortis Inc. (TSE:FTS) Have The Makings Of Another Dividend Aristocrat?3 weeks ago | Simply Wall St
Earnings Miss: Fortis Inc. Missed EPS By 6.1% And Analysts Are Revising Their ForecastsValuation
Is Fortis undervalued compared to its fair value and its price relative to the market?
14.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FTS (CA$53.01) is trading above our estimate of fair value (CA$42.99)
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 (14.3x) compared to the Electric Utilities industry average (19x).
PE vs Market: FTS is poor value based on its PE Ratio (14.3x) compared to the Canadian market (12.7x).
Price to Earnings Growth Ratio
PEG Ratio: FTS is poor value based on its PEG Ratio (3.9x)
Price to Book Ratio
PB vs Industry: FTS is good value based on its PB Ratio (1.4x) compared to the XN Electric Utilities industry average (1.9x).
Next Steps
Future Growth
How is Fortis forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
3.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTS's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).
Earnings vs Market: FTS's earnings (3.7% per year) are forecast to grow slower than the Canadian market (22.2% per year).
High Growth Earnings: FTS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTS's revenue (4.2% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: FTS's revenue (4.2% 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 (7.3%).
Next Steps
Past Performance
How has Fortis performed over the past 5 years?
24.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTS has a large one-off gain of CA$588.0M impacting its March 31 2020 financial results.
Growing Profit Margin: FTS's current net profit margins (19%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: FTS's earnings have grown significantly by 24.2% per year over the past 5 years.
Accelerating Growth: FTS's earnings growth over the past year (51.5%) exceeds its 5-year average (24.2% per year).
Earnings vs Industry: FTS earnings growth over the past year (51.5%) exceeded the Electric Utilities industry 3.5%.
Return on Equity
High ROE: FTS's Return on Equity (8.6%) is considered low.
Next Steps
Financial Health
How is Fortis's financial position?
Financial Position Analysis
Short Term Liabilities: FTS's short term assets (CA$2.5B) do not cover its short term liabilities (CA$4.5B).
Long Term Liabilities: FTS's short term assets (CA$2.5B) do not cover its long term liabilities (CA$31.1B).
Debt to Equity History and Analysis
Debt Level: FTS's debt to equity ratio (115.4%) is considered high.
Reducing Debt: FTS's debt to equity ratio has reduced from 120.7% to 115.4% 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
Next Steps
Dividend
What is Fortis's current dividend yield, its reliability and sustainability?
3.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FTS's dividend (3.6%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).
High Dividend: FTS's dividend (3.6%) is low compared to the top 25% of dividend payers in the Canadian market (6.37%).
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 reasonably low payout ratio (49.9%), FTS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FTS's dividends in 3 years are forecast to be covered by earnings (71.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Barry Perry (54yo)
5.33yrs
Tenure
CA$9,080,480
Compensation
Mr. Barry V. Perry became a Director of ITC Holdings Corp. in October 2016. Mr. Perry serves as Chief Executive Officer of Fortis Inc. since January 2015 and serves as its President since June 30, 2014. Mr ...
CEO Compensation Analysis
Compensation vs Market: Barry's total compensation ($USD6.58M) is about average for companies of similar size in the Canadian market ($USD6.80M).
Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.33yrs | CA$9.08m | 0.069% CA$17.1m | |
| Executive VP & CFO | 1.92yrs | CA$1.94m | 0.0089% CA$2.2m | |
| Chief Operating Officer | 0.33yr | CA$6.74m | 0.011% CA$2.7m | |
| Executive VP of Business Development & CTO | 1yr | CA$3.28m | 0.010% CA$2.6m | |
| Executive VP of Sustainability & Chief Human Resource Officer | 4.75yrs | CA$2.37m | no data | |
| Chief Information Officer & VP | no data | no data | 0.00022% CA$54.5k | |
| Vice President of Investor Relations | 2.58yrs | no data | 0.00092% CA$227.9k | |
| Executive VP | 2.17yrs | no data | 0.0026% CA$651.5k | |
| Vice President of Communications & Corporate Affairs | 2yrs | no data | 0.00034% CA$84.2k | |
| VP & Corporate General Counsel | no data | no data | 0.0010% CA$260.1k |
2.1yrs
Average Tenure
55.5yo
Average Age
Experienced Management: FTS's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.33yrs | CA$9.08m | 0.069% CA$17.1m | |
| CEO, President | no data | no data | no data | |
| Independent Corporate Director | 5yrs | CA$263.60k | 0.00043% CA$106.5k | |
| Independent Corporate Director | 2yrs | CA$148.62k | no data | |
| Independent Corporate Director | 4yrs | CA$243.59k | 0.0022% CA$532.6k | |
| Independent Corporate Director | 5yrs | CA$240.01k | 0.00051% CA$126.3k | |
| Independent Chairman of the Board | 3.67yrs | CA$452.10k | 0.0022% CA$532.6k | |
| Independent Corporate Director | 6yrs | CA$341.47k | 0.0011% CA$265.0k | |
| Independent Corporate Director | 4yrs | CA$369.22k | 0.00043% CA$106.5k | |
| Independent Corporate Director | 3yrs | CA$253.63k | 0.0011% CA$279.9k |
4.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: FTS's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FTS insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.
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$24.770b
- Shares outstanding: 464.30m
- Website: https://www.fortisinc.com
Number of Employees
Location
- Fortis Inc.
- Fortis Place
- Suite 1100
- St. John's
- Newfoundland and Labrador
- A1B 3T2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FTS | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1987 |
| 12F | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1987 |
| FTS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1987 |
| FTS.PRF | TSX (The Toronto Stock Exchange) | 1ST PFD SER F | CA | CAD | Sep 2006 | |
| FORF.F | OTCPK (Pink Sheets LLC) | 1ST PFD SER F | US | CAD | Sep 2006 | |
| FTS.PRH | TSX (The Toronto Stock Exchange) | PREF SHS SER H | CA | CAD | Jan 2010 | |
| FTS.PRJ | TSX (The Toronto Stock Exchange) | 1ST PF SHS S J | CA | CAD | Nov 2012 | |
| FTS.PRM | TSX (The Toronto Stock Exchange) | 1ST PREF SER M | CA | CAD | Sep 2014 | |
| FTS.PRI | TSX (The Toronto Stock Exchange) | PREF SHS SER I | CA | CAD | Jun 2015 |
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 429,000 retail customers in southeastern Arizona; and 97,000 retail customers in Arizona’s Mohave and Santa Cruz counties with an aggregate capacity of 3,143 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 1,041,000 residential, commercial and industrial and transportation customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 568,000 customers in southern and central Alberta; owns 4 hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 143 MW; and on Prince Edward Island with a generating capacity of 140 MW. Additionally, it provides integrated electric utility service to approximately 66,000 customers in Ontario; approximately 269,000 customers in Newfoundland and Labrador; approximately 31,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos. The company also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 91,000 circuit Kilometers (km) of distribution lines; and approximately 49,500 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 02:23 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.