Fortis Inc.

NYSE:FTS Stock Report

Market Cap: US$28.6b

Fortis Management

Management criteria checks 4/4

Fortis' CEO is Dave Hutchens, appointed in Jan 2021, has a tenure of 5.33 years. total yearly compensation is CA$17.30M, comprised of 10.1% salary and 89.9% bonuses, including company stock and options. directly owns 0.028% of the company’s shares, worth $7.88M. The average tenure of the management team and the board of directors is 4.8 years and 8.5 years respectively.

Key information

Dave Hutchens

Chief executive officer

CA$17.3m

Total compensation

CEO salary percentage10.10%
CEO tenure5.3yrs
CEO ownership0.03%
Management average tenure4.8yrs
Board average tenure8.5yrs

Recent management updates

Recent updates

Seeking Alpha • Jun 10

Fortis: The Buy Case For A Low-Risk Utility With Strong Earnings Visibility

Summary Fortis manages $75 billion in regulated assets and is committed to driving sustainable, steady growth through a $26 billion capital investment plan by 2029. Q1 2025 results highlight strong cash flow, robust rate base growth, and continued dividend increases, reinforcing Fortis’ low-risk, long-term appeal. The stock trades at a premium valuation, justified by its consistent performance and secure profile, making it attractive for long-term investors. While some risks exist and guru sentiment is mixed, FTS remains a solid choice for those seeking stability, steady growth, and reliable income. Read the full article on Seeking Alpha
Seeking Alpha • Dec 05

Behind The Billions: Fortis' Ambitious Vision For 2029

Summary Fortis Inc. is a major Canadian utility company expanding into clean energy with a CA$26 billion capital plan, focusing on regulated assets. Recent financials show growth in revenue and net earnings, driven by rate-based expansion and new customer rates, particularly in the U.S. Fortis has a strong dividend history with 51 consecutive years of increases and plans for 4-6% annual growth through 2029. Potential risks include regulatory challenges, execution risks of the capital plan, and sensitivity to interest rate changes, but long-term prospects remain strong. I am an investment analyst who provides insights on income and investment opportunities. Read the full article on Seeking Alpha
Seeking Alpha • Aug 22

Fortis: 'Hold' Despite The Outperformance

Summary Fortis has historically underperformed the market due to high valuation, but recent performance has been positive. The company's stability, growth, and dividend history make it an attractive investment for conservative returns. Despite positive aspects, Fortis stock is currently overvalued and not recommended for further investment at this time. Read the full article on Seeking Alpha
Seeking Alpha • Jun 06

Fortis: A Look At The Valuation On This Dividend Aristocrat

Summary Fortis has been delivering steady dividend growth for 5 decades. The stock has been on our watch list for a long time but has continuously eluded our buy points. We look at the recent results and update our thesis. Read the full article on Seeking Alpha
Seeking Alpha • Mar 27

Fortis: The Sub-Par Performance Continues Due To Valuation

Summary Fortis stock has underperformed and is unlikely to have high market-outperforming returns in the future. The company's stable operations and clear pathway for U.S. transmission upside make it an attractive investment. Fortis has a strong commitment to reducing emissions and a planned capital plan focused on smaller projects and clean energy solutions. Read the full article on Seeking Alpha
Seeking Alpha • Jan 10

Fortis: Preferred Shares Deliver Yield And Outperform Common

Summary On our last update, we gave a buy rating to the preferred shares for Fortis and stuck with a hold for the common. The company had a strong Q3 2023, beating consensus estimates with EPS of 84 cents, driven by regulatory approvals and favorable exchange rates. We examine the bull case today for both the common and the preferred shares. Read the full article on Seeking Alpha
Seeking Alpha • Nov 06

Fortis: An Update On One Of The Larger Canadian Utilities, Maintain 'Hold'

Summary Fortis is a regulated utility company with solid fundamentals and a track record of dividend increases for 50 consecutive years. FTS's valuation is currently high, trading at an 18.9x P/E ratio, which is considered expensive for a utility. Analysts have mixed opinions on the stock, with most rating it as a "hold" and only one analyst rating it as a "buy". I say this one is a "HOLD". Read the full article on Seeking Alpha
Seeking Alpha • Aug 23

Fortis: 8-9% Yielding Preferred Shares Offer A Lower Risk Prospect Vs. Common Shares

Summary Fortis delivered strong Q2/23 results, with adjusted earnings per share slightly above consensus and a 14% increase year to date. The company has big capital expenditure plans for the next five years, supported by investment grade ratings and predictable cash flow. We examine the valuation and make a case for the preferred shares over the common. Read the full article on Seeking Alpha
Seeking Alpha • Jun 06

Fortis: A Stable High-Yielding Utility That Is Too Expensive

Summary Fortis Inc. is one of the few utilities that has operations in multiple countries, but it still has many of the characteristics that investors appreciate in these companies. The company has remarkably stable cash flows regardless of economic conditions along with growth over time. The company is positioned to continue growing for the near future, and investors can expect an 8% to 10% average total return over the next five years. The company is very well financed relative to its peers and its 3.91% yield appears sustainable. Fortis looks a bit expensive relative to its peers, but that could improve in the near future. Read the full article on Seeking Alpha
Seeking Alpha • Feb 09

Fortis Q4 Earnings Preview

Fortis (NYSE:FTS) is scheduled to announce Q4 earnings results on Friday, February 10th, before market open. The consensus EPS Estimate is $0.53 (-15.9% Y/Y) and the consensus Revenue Estimate is $1.94B Over the last 2 years, FTS has beaten EPS estimates 100% of the time and has beaten revenue estimates 38% of the time. Over the last 3 months, EPS estimates have seen 6 upward revisions and 4 downward. Revenue estimates have seen 1 upward revisions and 2 downward
Seeking Alpha • Jan 17

Fortis: A Dividend King In The Making

Summary 49 years of consecutive dividend increases are rare and Fortis has accomplished just that. The diversified utility has a lot to boast about including great execution and an A-rating from S&P. What it cannot boast about today, though, is the valuation. All values are in CAD unless noted otherwise. 49 years, that's how many consecutive dividend increases Fortis Inc. (FTS) (FTS:CA) has had. November 2022 Presentation This includes a few years when this dividend aristocrat operated under the name, Newfoundland Light & Power Co. Limited. Headquartered in Canada, Fortis is a regulated electric and gas utility company with customers across North America and the Caribbean. As at October 31, 2022, the company's footprint looked like this. November 2022 Presentation Over 60% of its assets are located in the US, and expectedly the foreign operations also contribute more than 50% of its revenue. November 2022 Presentation Overall, most of its assets pertain to energy transmission and distribution. Fortis operates via independent utility businesses covering its various operational locations, with each business unit operating as a substantially autonomous entity. Emera Incorporated (EMA:CA) (EMRAF) is another Canadian utility we recently covered and found too rich for our value conscious taste. Our current protagonist has gone toe to toe with Emera in terms of total returns over the last decade. Data by YCharts This despite offering a comparatively lower dividend yield. Besides the expensive valuation, we did not like the high payout ratio and high debt load in Emera's case. Let us explore Fortis and see where it stands vis a vis its compatriot in our books. Q3-2022 Fortis delivered a solid third quarter for 2022 with adjusted earnings per share of 71 cents coming above estimates. The bulk of the beat came from the US side of operations and the weak Canadian dollar certainly helped. For the year, the company should earn about $2.75 a share and this should create a 6% growth rate, year over year. Company's Outlook Fortis rolled forward its 5-year outlook as 2022 was dropped off and 2027 was entered into the equation. Spending plans are about 11.5% higher for this period than the previous one. November 2022 Presentation The bulk of this is regulated utility growth with Forex boosting total amounts by $0.5 billion. Cleaner energy will make up about 25% of total spend. November 2022 Presentation Fortis sees this supportive of an annual base rate growth of 6.2% per annum over the next 5 years. November 2022 Presentation The same growth should allow a solid growth mantle for the dividend. November 2022 Presentation With a 4% current yield and at least 4% growth for the near future, the company looks like a delight to income investors who want predictable results. But does the entire case make sense? Valuation And Risks Fortis trades at 20.3X 2022 earnings per share. That number is hardly cheap in the best of times, let alone one where rates are rising rapidly. But in Fortis' defense, the company has historically traded on the expensive side and the market has been happy to extend it the credit for solid execution. Data by YCharts Most of the time when valuations reset, the pressure comes from either company faltering in some way, or via a recession. On the first front, Fortis has a solid plan to not issue any dilutive equity over the next 5 years. Equity issuance will be limited to the DRIP plan.
Seeking Alpha • Nov 08

Fortis Warrants A Valuation Update After A 14% Drop - Close To A 'Buy'

Summary In this article, I'm going to be providing a fresh look at Fortis, following an underperforming 14% drop in the company since my last article. Fortis is by no means a "small risky player" - it's one of the largest utilities in all of Canada, albeit one that trades at a typical huge premium. Since my last article, the company has dropped enough to where bullishness might be warranted under certain circumstances. Let's take a look. Dear readers/Followers, Looking at Fortis (FTS) becomes a play on overvaluation - at least it has been for the past few months or so. This is a very qualitative company, but one with issues in so far as the asked price for the respective cash flows go. I wouldn't "BUY" the company at the prices we've seen previously, but I might be interested as we drop down more and more. My previous PT for the company going by my last article was $48/share. Let's see if this latest update warrants any change or shift. Updating on Fortis Fortis needs no further introduction on my part. It's an absolutely solid near-dividend king with 49 consecutive years of dividend increases, boasting a $31B mid-year rate base and having delivered 20+ years of superior growth returns. In this, the company does not materially differ from many solid utilities, perhaps except for the fact that, unlike many European peers, it doesn't share the same exposure to the current macro. This is of course a positive. The second positive that needs to be mentioned is how absolutely, ridiculously stable this company actually is. It's stable enough that analysts, for the past 10 years, have never missed forecast by more than 3-5% in either direction, making it flawless with a 10% margin of error here. However, this sort of quality tends to come at a price - and that's also why we have such a usual premium for the business. With 10 solid regulated businesses under its wing and 3.4M combined customers, at a 99% regulated ratio with a $26B market cap, this business is as solid as it gets. It won't make you rich - at least not in the short term. But at the right price, it can definitely make you "safe". Recent results and trends put this into focus. The company's focus is razor-sharp upon things like cost control, and keeping this below rates of inflation, as well as keeping the company's grid reliability at top metrics. The company has consequently outperformed here. FTS IR (FTS IR) And, of course, as any conservative utility should, it shines over the long term. The 10-year average CAGR is around 11.3%, compared to 8.8% from the S&P and around 100 bps less from the closest peers. The company never lags peers, but only lags the market in the short, 3-year term. The other current company focus is net-zero - and Fortis has set a target of 2050, with a 2032 complete independence from coal - and this is with the updated geopolitical backdrop. Fortis IR (Fortis IR) Aside from ESG and cost control, the company's plan focuses on a low-risk rate base growth with 6.2% CAGR until 2027 fiscal. This 5-year plan will cost the company around $22.3B worth of CapEx and is around $2B increase from the previous plan, which went to 2026E. This equates to an annual capital spending of around $4.4B, of which 83% is smaller projects. In accordance with the company's capitalization and debt, this is highly executable. The plan focuses, above all, on three of the company's largest utilities. Fortis IR (Fortis IR) In terms of funding, the company won't need to tap equity at all to fund its plan - instead managing to fund it to 57% from operational cash flow, 33% from net debt, and a 10% DRIP financing. IG-rating will be maintained during the expansion as well. In short, the plan is about connecting more renewables, building more renewable, sourcing alternatives to reduce Co2, replacing legacy assets, harden and preparing the grid for electrification. The company forecasts that all of these strategies and approaches will enable Fortis to grow the annual dividend by 4-6% going forward until 2027, turning the company into a dividend king and beyond. As always when looking at regulated players, the regulators and relevant regulations/base rates should be looked at and understood. I believe it to be a fair assessment overall that based on the current socioeconomic environment and flows, companies have a much harder time getting their demands heeded by regulators. We saw it for Pinnacle West Capital (PNW), and we've seen it in Europe as well. Fortis is seeing some of these flows as well. Regulators are denying capital structure complaints, and eliminating certain adders, and I believe it should be understood that increases going forward may be less than stakeholders and investors hope for and expect. Regulators need to protect their customers from "too high" increases, and the easiest way for them to do so is to pressure companies to give up portions of their margins - at least some of them. However, this does not make Fortis a bad or uninteresting investment in the least - it does mean though that we may want to expect slightly less from the company going forward than we've traditionally expected. This is also part of the reason why the company is trading southward, rather than north. With hundreds of billions slated for investment in energy and climate, Fortis may be one of the primary beneficiaries of the climate portion of the inflation reduction act - or at least a company that will certainly enjoy advantages from it. News in the earnings calls, including the most recent ones, centered mostly on the lake Erie cancellation - which makes sense. I believe, however, that the company's choice here was very prudent. The expected RoR and the current circumstances were no longer in line with expectations - and Fortis showed the quality that a company in their situation needs to show when the math no longer "works out". All in all, Fortis remains safe. Fortis remains sound. Fortis remains profitable - but we do need to consider the valuation. Fortis Valuation Fortis remains at a massive premium compared to where other companies trade. While the picture is that the company has dropped in the last few months, the fact is that on a broader picture, the valuation isn't as enticing as we might be looking for after all. FTS Valuation (F.A.S.T graphs) Despite dropping 10%+ or so since my last piece, the company still cannot in good conscience be said to be "cheap". Current trends see FTS trading close to 19.3x P/E, and this is still a bit much for a utility, no matter how good the company is. However, at the same time, it would be completely wrong for me to ignore Fortis at a valuation that's essentially the low point we've seen since COVID-19. Yes, the business was cheaper in 2017-2018, but there were reasons for this. And like it or not, the premium is actually fairly well established at this point. Fortis is a 4.3%-yielding utility with superb A-quality in a market where utilities don't seldom yield twice as much, but at a somewhat different risk "cost" or risk/reward-relationship If you want to "BUY" Fortis here, you need to accept the company's 19-20x P/E premium, despite the company only growing around mid-single digits over the coming few years. If you're willing to set a 5-6% growing company at a 19-20x P/E premium, then your RoR could be close to 10.5% annually, or 24% until 2024E. Fortis Upside (F.A.S.T graphs) Is it bad? No. Is it great? No, not really. Is it market-beating? Yes, potentially. So while not the best opportunity to "park" cash, I believe Fortis at this price is starting to look as an opportunity that could generate alpha at a substantial amount of relative safety. Consider for a moment what has happened with many of the Russian/Ukraine-impacted utilities, and you can see how some of these businesses can really "shake", but as you can see from the history, that does not mean it has always-low volatility. While any time this company was bought at 21-22X P/E or above during the last 20 years, your long-term returns over time would have been less than 5-6% including dividends - the fact remains that once you start buying at below 20x P/E, historical records change to show potential RoR of closer to 8-9%, or even double digits depending on where you look at. Specifically, I revised my previous target for Fortis, by accepting a higher-end P/E multiple of around 19x. If you bought the company at 15-19X P/E, that minimum RoR goes up to between 7.5-15% annually, including dividends. So I'm willing now to extend my "BUY" range up to 19x P/E for the company, which is closer to the company's 5-year average here. So a 19.3x P/E? That's hovering very close to what I would consider acceptable here. You only need to adjust forecasts slightly, or have the company beat estimates a little to make that 19.3x into a 19x. What I mean is that it's within the margin of error, and that Fortis can indeed be bought here - if you're willing to accept only a bare-one 10% or high 9% conservative annual RoR. S&P Global analysts still have a hard time accepting my stance of "overvaluation" for Fortis. While the average is finally down below $60/share, 17 analysts give the company an average of $55.5 per share, which is still more than I would be willing to accept, considering Fortis around 5% undervalued here. Despite that though, out of 17 analysts, only 2 consider the company a "BUY", revealing how unconvinced some of these analysts are by their own targets and the current market.
Seeking Alpha • Oct 27

Fortis Q3 2022 Earnings Preview

Fortis (NYSE:FTS) is scheduled to announce Q3 earnings results on Friday, October 28th, before market open. The consensus EPS Estimate is $0.50 (-21.9% Y/Y) and the consensus Revenue Estimate is $1.76B. Over the last 2 years, FTS has beaten EPS estimates 100% of the time and has beaten revenue estimates 38% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 9 downward. Revenue estimates have seen 0 upward revisions and 1 downward.
Seeking Alpha • Sep 28

Fortis raises dividend 5.6% to CAD 0.565/share

Fortis (NYSE:FTS) declares CAD 0.565/share quarterly dividend, 5.6% increase from prior dividend of CAD 0.535. Forward yield 4.14% Payable Dec. 1; for shareholders of record Nov. 17; ex-div Nov. 16. See FTS Dividend Scorecard, Yield Chart, & Dividend Growth.

CEO Compensation Analysis

How has Dave Hutchens's remuneration changed compared to Fortis's earnings?
DateTotal CompensationSalaryCompany Earnings
Mar 31 2026n/an/a

CA$2b

Dec 31 2025CA$17mCA$2m

CA$2b

Sep 30 2025n/an/a

CA$2b

Jun 30 2025n/an/a

CA$2b

Mar 31 2025n/an/a

CA$2b

Dec 31 2024CA$16mCA$2m

CA$2b

Sep 30 2024n/an/a

CA$2b

Jun 30 2024n/an/a

CA$2b

Mar 31 2024n/an/a

CA$2b

Dec 31 2023CA$14mCA$2m

CA$2b

Sep 30 2023n/an/a

CA$1b

Jun 30 2023n/an/a

CA$1b

Mar 31 2023n/an/a

CA$1b

Dec 31 2022CA$12mCA$2m

CA$1b

Sep 30 2022n/an/a

CA$1b

Jun 30 2022n/an/a

CA$1b

Mar 31 2022n/an/a

CA$1b

Dec 31 2021CA$9mCA$1m

CA$1b

Sep 30 2021n/an/a

CA$1b

Jun 30 2021n/an/a

CA$1b

Mar 31 2021n/an/a

CA$1b

Dec 31 2020CA$7mCA$1m

CA$1b

Sep 30 2020n/an/a

CA$1b

Jun 30 2020n/an/a

CA$1b

Mar 31 2020n/an/a

CA$2b

Dec 31 2019CA$5mCA$1m

CA$2b

Compensation vs Market: Dave's total compensation ($USD12.67M) is about average for companies of similar size in the US market ($USD14.67M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.

CEO

Dave Hutchens (58 yo)

5.3yrs
Tenure
CA$17,303,041
Compensation

Mr. David Gerard Hutchens, also known as Dave, was Director of FortisBC Inc. from January 2015 to 2025. He serves as President, Chief Executive Officer and Director at Fortis Inc. since January 1, 2021. Mr...

Leadership Team

NamePositionTenureCompensationOwnership
David Hutchens
President5.3yrsCA$17.30m0.028%
$ 7.9m
Jocelyn Perry
Executive VP & CFO7.9yrsCA$4.03m0.012%
$ 3.4m
Gary Smith
Executive Vice President of Operations & Technology4.3yrsCA$3.57m0.0091%
$ 2.6m
James Reid
Executive VP of Sustainability & Chief Legal Officer8.2yrsCA$3.50m0.0076%
$ 2.2m
Stuart Lochray
Executive Vice President of Strategy & Business Development1.3yrsCA$2.71m0.0043%
$ 1.2m
Keri Glitch
Chief Information Officer & VP2.1yrsno data0.000090%
$ 25.7k
Stephanie Amaimo
Vice President of Investor Relations8.6yrsno data0.0023%
$ 651.4k
Karen McCarthy
Vice President of Communications and Government Relations8yrsno data0.00076%
$ 217.1k
Tanya Finlay
Vice President of People & Culture2.8yrsno data0.0016%
$ 445.7k
Regan O'Dea
VP & General Counselno datano data0.0030%
$ 857.1k
Stephanie Raymond
President & CEO of Central Hudsonno datano datano data
J. F. Hew
President and Chief Executive Officer Caribbean Utilities Company1.3yrsno datano data
4.8yrs
Average Tenure
56yo
Average Age

Experienced Management: FTS's management team is considered experienced (4.8 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
David Hutchens
President5.3yrsCA$17.30m0.028%
$ 7.9m
Maura Clark
Independent Director11yrsCA$451.00k0.00039%
$ 111.4k
Julie Dobson
Independent Director8yrsCA$443.55k0.0011%
$ 328.6k
Jo Zurel
Independent Chair10yrsCA$569.22k0.0020%
$ 560.0k
Donald Marchand
Independent Director3yrsCA$327.68k0.00098%
$ 280.0k
Pierre Blouin
Independent Director11yrsCA$379.62k0.00083%
$ 237.1k
Tracey Ball
Independent Director12yrsCA$514.91k0.0014%
$ 394.3k
Margarita Dilley
Independent Director10yrsCA$614.69k0.00089%
$ 254.3k
Lawrence Borgard
Independent Director9yrsCA$420.38k0.0022%
$ 631.4k
Gianna Manes
Independent Director5yrsCA$440.71kno data
Gregory Knight
Independent Director1.3yrsCA$363.44kno data
Lisa Durocher
Independent Director5yrsCA$352.28k0.000060%
$ 17.1k
8.5yrs
Average Tenure
62.5yo
Average Age

Experienced Board: FTS's board of directors are considered experienced (8.5 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/07 02:05
End of Day Share Price 2026/05/07 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Fortis Inc. is covered by 23 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshit GuptaAccountability Research Corporation
Daniel FordBarclays
Ross FowlerBarclays