Forty Eight Review ~ deblockdasdesign

Forty Eight Review

Fortis is an utilities-regulated electric business based in Canada. Fortis stocks (FTS.TO) are listed on the TO and all prices are listed in Canadian Dollars. Its last market close was C$57.87 – an increase of 0.68% over the previous week. Fortis employs 9,000 staff and has a trailing 12-month revenue of around C$9.2 billion.

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Is it a good time to buy Fortis stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

How has Coronavirus impacted Fortis's stock price?

Since the stock market crash in March caused by coronavirus, Fortis's stock price has had significant negative movement.

Its last market close was C$56.31, which is 3.66% down on its pre-crash value of C$58.45 and 35.62% up on the lowest point reached during the March crash when the stocks fell as low as C$41.52.

If you had bought C$1,000 worth of Fortis stocks at the start of February 2020, those stocks would have been worth C$726.68 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth C$969.66.

Fortis stock price (TO: FTS)

Use our graph to track the performance of FTS stocks over time.

Fortis shares at a glance

Key figures

Information last updated 2021-11-28.

Latest market close	C$56.31
52-week range	C$47.65 - C$58.38
50-day moving average	C$56.14
200-day moving average	C$55.42
Wall St. target price	C$58.90
PE ratio	21.2743
Dividend yield	C$2.02 (3.6%)
Earnings per share (TTM)	C$2.63

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Note: The dollar amounts in the table below are in Canadian dollars.

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Fortis price performance over time

Historical closes compared with the close of C$56.31 from 2021-12-03

1 week (2021-11-26)	0.68%
1 month (2021-11-04)	0.64%
3 months (2021-09-03)	-2.56%
6 months (2021-06-04)	1.92%

1 year (2020-12-04)	7.73%
2 years (2019-12-04)	7.22%
3 years (2018-12-04)	19.99%
5 years (2016-12-02)	40.42%

Is Fortis under- or over-valued?

Valuing Fortis stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Fortis's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Fortis's P/E ratio

Fortis's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Fortis shares trade at around 21x recent earnings.

Fortis's PEG ratio

Fortis's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.32. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Fortis's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Fortis's EBITDA

Fortis's EBITDA (earnings before interest, taxes, depreciation and amortisation) is C$4 billion.

The EBITDA is a measure of a Fortis's overall financial performance and is widely used to measure a its profitability.

Fortis financials

Revenue TTM	C$9.2 billion
Operating margin TTM	27.36%
Gross profit TTM	C$3.9 billion
Return on assets TTM	2.77%
Return on equity TTM	6.79%
Profit margin	14.1%
Book value	C$37.06
Market capitalisation	C$26.4 billion

TTM: trailing 12 months

Fortis's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Fortis.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Fortis's total ESG risk score

Total ESG risk: 30.93

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Fortis's overall score of 30.93 (as at 01/01/2019) is nothing to write home about – landing it in it in the 56th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Fortis is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Fortis's environmental score

Environmental score: 13.88/100

Fortis's environmental score of 13.88 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Fortis is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Fortis's social score

Social score: 9.05/100

Fortis's social score of 9.05 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Fortis is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Fortis's governance score

Governance score: 6/100

Fortis's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Fortis is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Fortis's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Fortis scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Fortis has, for the most part, managed to keep its nose clean.

Fortis share dividends

Dividend payout ratio: 77.36% of net profits

Recently Fortis has paid out, on average, around 77.36% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.83% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Fortis shareholders could enjoy a 3.83% return on their shares, in the form of dividend payments. In Fortis's case, that would currently equate to about C$2.02 per share.

Fortis's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Fortis's most recent dividend payout was on 1 March 2022. The latest dividend was paid out to all shareholders who bought their shares by 16 November 2021 (the "ex-dividend date").

Have Fortis's shares ever split?

Fortis's shares were split on a 4:1 basis on 12 October 2005. So if you had owned 1 share the day before before the split, the next day you'd have owned 4 shares. This wouldn't directly have changed the overall worth of your Fortis shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for Fortis shares which in turn could have impacted Fortis's share price.

Fortis share price volatility

Over the last 12 months, Fortis's shares have ranged in value from as little as C$47.6485 up to C$58.3813. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (TO average) beta is 1, while Fortis's is 0.0613. This would suggest that Fortis's shares are less volatile than average (for this exchange).

Fortis overview

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. In addition, it owns and operates the electricity distribution system that serves approximately 572,000 customers in southern and central Alberta; owns 4 hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 143 MW; and on Prince Edward Island with a generating capacity of 130 MW. Additionally, it provides integrated electric utility service to approximately 67,000 customers in Ontario; approximately 270,000 customers in Newfoundland and Labrador; approximately 31,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.