Fortis Inc
TSX:FTS

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Fortis Inc
TSX:FTS
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Price: 63.22 CAD 1.02% Market Closed
Market Cap: 31.4B CAD
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Intrinsic Value

The intrinsic value of one FTS stock under the Base Case scenario is 86.01 CAD. Compared to the current market price of 63.22 CAD, Fortis Inc is Undervalued by 26%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

FTS Intrinsic Value
86.01 CAD
Undervaluation 26%
Intrinsic Value
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Base Case
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Fortis Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Fortis Inc., a North American leader in the utility sector, has firmly established itself as a reliable investment choice for those seeking stability and growth in their portfolios. Founded in 1885, the company operates in the electric and gas distribution industries, catering to nearly 3 million customers across Canada, the United States, and the Caribbean. With a diverse array of regulated assets, Fortis has built a reputation for strong operational performance and consistent dividend growth. Its commitment to sustainable energy initiatives and infrastructure investments aligns with shifting market trends, positioning the company to benefit from the global transition towards cleaner energy...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Fortis Inc

Current Assets 4.2B
Cash & Short-Term Investments 896m
Receivables 1.7B
Other Current Assets 1.6B
Non-Current Assets 65.4B
PP&E 46.3B
Intangibles 14B
Other Non-Current Assets 5.1B
Current Liabilities 5.7B
Accounts Payable 3.1B
Short-Term Debt 97m
Other Current Liabilities 2.5B
Non-Current Liabilities 41.4B
Long-Term Debt 30.1B
Other Non-Current Liabilities 11.4B
Efficiency

Earnings Waterfall
Fortis Inc

Revenue
11.4B CAD
Cost of Revenue
-3.4B CAD
Gross Profit
8.1B CAD
Operating Expenses
-4.9B CAD
Operating Income
3.2B CAD
Other Expenses
-1.6B CAD
Net Income
1.6B CAD

Free Cash Flow Analysis
Fortis Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Fortis delivered strong Q3 results with adjusted EPS of $0.85, up $0.01 year-over-year. Significant growth drivers included new customer rates in Arizona and ongoing investments, leading to $3.6 billion allocated through September 2024, with a projected total of $5.2 billion for the year. The company announced a 4% increase in its fourth-quarter dividend, extending its annual dividend growth guidance of 4% to 6% through 2029. Fortis highlighted a new five-year capital plan of $26 billion, supporting an average rate base growth of 6.5%. This aligns with their commitment to enhancing infrastructure while ensuring affordability for customers.

What is Earnings Call?
Fundamental Scores

FTS Profitability Score
Profitability Due Diligence

Fortis Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Operating Income
Positive 3-Years Revenue Growth
Positive Net Income
50/100
Profitability
Score

Fortis Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

FTS Solvency Score
Solvency Due Diligence

Fortis Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Average D/E
Short-Term Solvency
Positive Net Debt
35/100
Solvency
Score

Fortis Inc's solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

FTS Price Targets Summary
Fortis Inc

Wall Street analysts forecast FTS stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for FTS is 62.64 CAD with a low forecast of 54.85 CAD and a high forecast of 68.25 CAD.

Lowest
Price Target
54.85 CAD
13% Downside
Average
Price Target
62.64 CAD
1% Downside
Highest
Price Target
68.25 CAD
8% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
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Safe
0
25
50
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100
Shareholder Yield

Current shareholder yield for FTS is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Profile

Fortis Inc Logo
Fortis Inc

Country

Canada

Industry

Utilities

Market Cap

31.4B CAD

Dividend Yield

5.62%

Description

Fortis, Inc. is a holding company, which engages in energy generation and distribution. The company is headquartered in St. Johns, Newfoundland And Labrador and currently employs 9,095 full-time employees. The firm's regulated utility businesses includes ITC Investment Holdings Inc., ITC Holdings Corp. and the electric transmission operations of its regulated operating subsidiaries, which include International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC and ITC Great Plains, LLC; UNS Energy Corporation, which primarily includes Tucson Electric Power Company (TEP), UNS Electric, Inc. and UNS Gas, Inc.; CH Energy Group, Inc, which primarily includes Central Hudson Gas and Electric Corporation; FortisBC Energy Inc.; FortisAlberta Inc. and FortisBC Inc. The firm's Non-regulated energy infrastructure consists of Aitken Creek Gas Storage ULC (Aitken Creek) a natural gas storage facility in British Columbia, and Belize Electric Company Limited (BECOL) a three hydroelectric generation facilities with a combined capacity of 51 Megawatts in Belize.

Contact

NEWFOUNDLAND AND LABRADOR
ST. JOHNS
Fortis Place, Suite 1100, 5 Springdale Street, PO Box 8837
+17097372800.0
www.fortisinc.com

IPO

1980-03-17

Employees

9 095

Officers

President, CEO & Director
Mr. David Gerard Hutchens
Executive VP & CFO
Ms. Jocelyn H. Perry
Executive Vice President of Operations & Innovation
Mr. Gary J. Smith
Executive VP of Sustainability & Chief Legal Officer
Mr. James R. Reid
Senior Vice President of Capital Markets & Business Development
Mr. Stuart R. Lochray
Vice President of Innovation & Technology
Mr. Kevin D. Woodbury
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Chief Information Officer & VP
Ms. Keri L. Glitch
Vice President of Investor Relations
Ms. Stephanie A. Amaimo
Vice President of Communications and Government Relations
Ms. Karen M. McCarthy BPR, M.Ed
Vice President of People & Culture
Ms. Tanya Nicole Finlay
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See Also

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What is the Intrinsic Value of one FTS stock?

The intrinsic value of one FTS stock under the Base Case scenario is 86.01 CAD.

Is FTS stock undervalued or overvalued?

Compared to the current market price of 63.22 CAD, Fortis Inc is Undervalued by 26%.

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