# Fortis Inc. (FTS.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / IT Services. Price C$76.47, market value C$39.1 billion.

## Valuation
- **P/E (trailing): 22.5×** (5-yr avg 18.2×, 3-yr avg 18.0×). Fortis Inc. trades at 22.5× trailing earnings, well above its own five-year average of 18.2×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 19.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 3.99**. A PEG of 3.99 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 3.2×**. Each dollar of revenue is priced at 3.2×.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.0×**. Enterprise value is 12.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -5.0%** (5-yr avg -3.8%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 39.6%**. Fortis Inc. keeps 39.6% of revenue after the direct cost of what it sells.
- **Operating margin: 28.2%**. 28.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 14.8%**. 14.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 7.6%**. 7.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 5.0%**. Return on all capital, debt included, is 5.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.4%**. Each dollar of assets produces 2.4% of profit.

## Growth
- **Revenue growth (1 yr): 5.8%** (3-yr 3.3%/yr, 5-yr 6.4%/yr). Revenue grew 5.8% over the last year, against 6.4% a year compounded over five years.
- **EPS growth (1 yr): 4.9%** (3-yr 6.9%/yr, 5-yr 5.5%/yr). Earnings per share rose 4.9%, roughly in step with revenue.

## Financial health
- **Debt to equity: 1.46**. Debt is 1.46 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 5.6×**. It would take 5.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.3×**. Operating profit covers interest 2.3×, thin but manageable.
- **Current ratio: 0.51** (quick 0.42). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.18**. A Z-score of 1.18 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.35%** (C$2.54 per share, trailing). Fortis Inc. yields 3.35%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 49%**. 49% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 20**. 20 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 5.1%/yr** (1-yr 4.2%). The dividend has grown 5.1% a year over five years.
- **Shareholder yield: 3.2%**. Dividends plus net buybacks return 3.2% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (14 analysts). 14 analysts cover Fortis Inc.; the consensus is hold, with an average price target of C$83.04 (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 14.2%** (YTD 9.0%, 3-mo -1.7%). The shares are up 14.2% over twelve months including dividends.
- **From 52-week high: -8.7%** (13.9% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): -0.11** (volatility 14%). Beta of -0.11 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FTS.TO · Page: https://foliofundamentals.com/stocks/fts.to

Not investment advice.