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
| FTS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 1.4% | 0.9% |
| 30 Day | 5.3% | 5.9% | 3.0% |
| 90 Day | 7.1% | 2.7% | 7.5% |
| 1 Year | 2.7%-1.1% | 10.6%6.9% | 43.9%39.2% |
| 3 Year | 45.9%30.5% | 30.9%19.7% | 32.5%19.8% |
| 5 Year | 65.5%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
1 week ago | Simply Wall St
A Look At The Fair Value Of Fortis Inc. (TSE:FTS)2 weeks ago | Simply Wall St
Investors In Fortis Inc. (TSE:FTS) Should Consider This, First1 month ago | Simply Wall St
Did You Participate In Any Of Fortis' (TSE:FTS) Respectable 50% Return?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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 22:11 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.