Executive Summary
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and fair value.
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
-0.04%
FTS
-0.03%
CA Electric Utilities
-0.2%
CA Market
1 Year Return
-10.4%
FTS
-7.3%
CA Electric Utilities
1.5%
CA Market
Return vs Industry: FTS underperformed the Canadian Electric Utilities industry which returned -7.3% over the past year.
Return vs Market: FTS underperformed the Canadian Market which returned 1.5% over the past year.
Shareholder returns
| FTS | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.04% | -0.03% | -0.2% |
| 30 Day | -0.7% | 3.4% | 2.7% |
| 90 Day | -4.5% | -0.3% | 12.5% |
| 1 Year | -7.5%-10.4% | -4.2%-7.3% | 5.2%1.5% |
| 3 Year | 33.3%19.6% | 26.4%15.4% | 13.5%2.7% |
| 5 Year | 53.6%28.0% | 44.0%23.0% | 60.0%35.5% |
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
Could The Fortis Inc. (TSE:FTS) Ownership Structure Tell Us Something Useful?3 weeks ago | Simply Wall St
Are Investors Undervaluing Fortis Inc. (TSE:FTS) By 35%?1 month ago | Simply Wall St
Read This Before Buying Fortis Inc. (TSE:FTS) For Its DividendValuation
Is Fortis undervalued compared to its fair value and its price relative to the market?
34.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTS (CA$52.11) is trading below our estimate of fair value (CA$79.98)
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 (19.6x) compared to the XN Electric Utilities industry average (19.5x).
PE vs Market: FTS is poor value based on its PE Ratio (19.6x) compared to the Canadian market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: FTS is poor value based on its PEG Ratio (2.7x)
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 (1.7x).
Next Steps
Future Growth
How is Fortis forecast to perform in the next 1 to 3 years based on estimates from 12 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 (26.2% per year).
High Growth Earnings: FTS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTS's revenue (4% per year) is forecast to grow slower than the Canadian market (8% per year).
High Growth Revenue: FTS's revenue (4% 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%).
Next Steps
Past Performance
How has Fortis performed over the past 5 years?
19.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTS has high quality earnings.
Growing Profit Margin: FTS's current net profit margins (13.7%) are lower than last year (18.1%).
Past Earnings Growth Analysis
Earnings Trend: FTS's earnings have grown by 19.5% 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 (-22.1%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.3%).
Return on Equity
High ROE: FTS's Return on Equity (6.8%) 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$2.8B) do not cover its short term liabilities (CA$3.8B).
Long Term Liabilities: FTS's short term assets (CA$2.8B) do not cover its long term liabilities (CA$31.9B).
Debt to Equity History and Analysis
Debt Level: FTS's debt to equity ratio (119.6%) is considered high.
Reducing Debt: FTS's debt to equity ratio has increased from 116.6% to 119.6% over the past 5 years.
Debt Coverage: FTS's debt is not well covered by operating cash flow (10.6%).
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?
3.88%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: FTS's dividend (3.88%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: FTS's dividend (3.88%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).
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 (71.8%), 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 (74% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Dave Hutchens (53 yo)
no data
Tenure
CA$5,447,476
Compensation
Mr. David Gerard Hutchens, also known as Dave, serves as President, Chief Executive officer and Director at Fortis Inc. since January 1, 2021. He had been Chief Operating Officer of Fortis Inc. since Janua...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD4.28M) is below average for companies of similar size in the Canadian market ($USD6.59M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | CA$5.45m | 0.014% CA$ 3.3m | |
| Executive VP & CFO | 2.58yrs | CA$3.05m | 0.0090% CA$ 2.2m | |
| Executive VP of Business Development & CTO | 1.67yrs | CA$3.94m | 0.010% CA$ 2.5m | |
| Executive VP of Sustainability & Chief Human Resource Officer | 5.42yrs | CA$2.73m | 0.024% CA$ 5.7m | |
| Chief Information Officer & VP | no data | no data | 0.00021% CA$ 51.1k | |
| Vice President of Investor Relations | 3.25yrs | no data | 0.00093% CA$ 226.2k | |
| Executive VP | 2.83yrs | no data | 0.0027% CA$ 651.9k | |
| Vice President of Communications & Corporate Affairs | 2.67yrs | no data | 0.00035% CA$ 85.1k | |
| VP & Corporate General Counsel | no data | no data | 0.0011% CA$ 260.3k | |
| Executive Vice President of Eastern Canadian & Caribbean Operations | 3.58yrs | no data | 0.0075% CA$ 1.8m | |
| Executive Vice President of Western Utility Operations | no data | no data | no data | |
| CEO & President of Fortis Turks & Caicos | no data | no data | no data |
2.8yrs
Average Tenure
58yo
Average Age
Experienced Management: FTS's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | CA$5.45m | 0.014% CA$ 3.3m | |
| CEO, President | no data | no data | no data | |
| Independent Corporate Director | 5.67yrs | CA$295.20k | 0.00043% CA$ 104.6k | |
| Independent Corporate Director | 2.67yrs | CA$279.07k | 0.00047% CA$ 114.3k | |
| Independent Corporate Director | 2.67yrs | CA$276.16k | no data | |
| Independent Corporate Director | 4.67yrs | CA$261.22k | 0.0021% CA$ 520.5k | |
| Independent Corporate Director | 5.67yrs | CA$260.89k | 0.00051% CA$ 124.0k | |
| Independent Chairman of the Board | 4.33yrs | CA$465.32k | 0.0021% CA$ 520.5k | |
| Independent Corporate Director | 6.67yrs | CA$360.34k | 0.0011% CA$ 257.8k | |
| Independent Corporate Director | 4.67yrs | CA$403.72k | 0.00043% CA$ 104.6k | |
| Independent Corporate Director | 3.67yrs | CA$283.29k | 0.0011% CA$ 274.9k |
4.7yrs
Average Tenure
62yo
Average Age
Experienced Board: FTS's board of directors are considered experienced (4.7 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 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$24.323b
- Shares outstanding: 466.77m
- 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 | USD | 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 c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 00:13 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| 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.