| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 0/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | CA$56.45 |
| 52 Week High | CA$48.97 |
| 52 Week Low | CA$59.25 |
| Beta | 0.062 |
| 1 Month Change | -2.17% |
| 3 Month Change | 2.17% |
| 1 Year Change | 3.56% |
| 3 Year Change | 35.24% |
| 5 Year Change | 35.93% |
| Change since IPO | 914.83% |
Recent News & Updates
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...
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...
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
| FTS | CA Electric Utilities | CA Market | |
|---|---|---|---|
| 7D | -2.2% | -2.1% | 1.8% |
| 1Y | 3.6% | 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
| FTS volatility | |
|---|---|
| FTS Beta | 0.062 |
| Industry Beta | 0.43 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1885 | 9,000 | Dave Hutchens | https://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
| FTS fundamental statistics | |
|---|---|
| Market Cap | CA$26.60b |
| Earnings (TTM) | CA$1.23b |
| Revenue (TTM) | CA$9.14b |
21.6x
P/E Ratio2.9x
P/S RatioIs FTS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FTS income statement (TTM) | |
|---|---|
| Revenue | CA$9.14b |
| Cost of Revenue | CA$5.21b |
| Gross Profit | CA$3.92b |
| Expenses | CA$2.69b |
| Earnings | CA$1.23b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 29, 2021
| Earnings per share (EPS) | 2.61 |
| Gross Margin | 42.94% |
| Net Profit Margin | 13.47% |
| Debt/Equity Ratio | 121.5% |
How did FTS perform over the long term?
See historical performance and comparisonDividends
3.6%
Current Dividend Yield76%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 22:59 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| 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.