Fortis Inc.
Fortis Inc. Fundamental Analysis
Fortis Inc. (FTS) shows weak financial fundamentals with a PE ratio of 23.17, profit margin of 14.78%, and ROE of 7.51%. The company generates $11.6B in annual revenue with weak year-over-year growth of -0.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FTS's fundamental strength across five key dimensions:
Efficiency Score
WeakFTS struggles to generate sufficient returns from assets.
Valuation Score
ModerateFTS shows balanced valuation metrics.
Growth Score
WeakFTS faces weak or negative growth trends.
Financial Health Score
WeakFTS carries high financial risk with limited liquidity.
Profitability Score
WeakFTS struggles to sustain strong margins.
Key Financial Metrics
Is FTS Expensive or Cheap?
P/E Ratio
FTS trades at 23.17 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FTS's PEG of 17.76 indicates potential overvaluation.
Price to Book
The market values Fortis Inc. at 1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.91 times EBITDA. This is generally considered low.
How Well Does FTS Make Money?
Net Profit Margin
For every $100 in sales, Fortis Inc. keeps $14.78 as profit after all expenses.
Operating Margin
Core operations generate 28.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.51 in profit for every $100 of shareholder equity.
ROA
Fortis Inc. generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fortis Inc. generates strong operating cash flow of $3.86B, reflecting robust business health.
Free Cash Flow
Fortis Inc. generates weak or negative free cash flow of $-2.07B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.07 in free cash annually.
FCF Yield
FTS converts -5.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FTS Stacks Against Its Sector Peers
| Metric | FTS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.17 | 19.20 | Worse (Expensive) |
| ROE | 7.51% | 1033.00% | Weak |
| Net Margin | 14.78% | 9191.00% | Weak |
| Debt/Equity | 1.45 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.51 | 1.68 | Weak Liquidity |
| ROA | 2.40% | -237.00% (disorted) | Weak |
FTS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fortis Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.62%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-13.91%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
28.64%
Industry Style: Defensive, Dividend, Income
High Growth