Fortis (TSE:FTS)
NYSE:FTS
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Fortis
(NYSE:FTS)
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Rating:65Neutral
Price Target:
C$82.00
▲(5.22% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by stable profitability and a positive, guidance-backed growth and dividend outlook from the latest earnings call, tempered by persistent negative free cash flow and elevated leverage that increase funding/rate sensitivity. Technical indicators are mildly soft, while valuation and yield are supportive but not deeply discounted.
Positive Factors
Regulated utility business model
A regulated-rate business provides durable, predictable cash flows and allowed returns tied to invested utility plant. This model supports multiyear earnings visibility, incentivizes capital investment that grows rate base, and limits cyclical volatility versus merchant energy businesses.
Negative Factors
Elevated financial leverage
Leverage around 1.4–1.5x constrains financial flexibility and increases sensitivity to higher interest rates or weaker market access. For a capital-intensive utility, elevated debt amplifies refinancing risk, raises funding costs over time, and can pressure allowed returns or credit metrics if adverse events occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility business model
A regulated-rate business provides durable, predictable cash flows and allowed returns tied to invested utility plant. This model supports multiyear earnings visibility, incentivizes capital investment that grows rate base, and limits cyclical volatility versus merchant energy businesses.
Read all positive factors
Fortis (FTS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$39.26B
Dividend Yield3.5%
Average Volume (3M)1.68M
Price to Earnings (P/E)21.5
Beta (1Y)0.23
Revenue Growth4.14%
EPS Growth2.58%
CountryCA
Employees9,800
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.16
Shares Outstanding507,400,000
10 Day Avg. Volume1,660,589
30 Day Avg. Volume1,682,450
Financial Highlights & Ratios
PEG Ratio4.04
Price to Book (P/B)1.51
Price to Sales (P/S)2.95
P/FCF Ratio-16.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$79.73Price Target Upside2.32% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)3.61
Revenue Forecast (FY)C$13.15B
Fortis Business Overview & Revenue Model
Company Description
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 438,000 retail customers in southeastern Arizona; and 100,...
How the Company Makes Money
Fortis primarily makes money by earning regulated returns on the utility infrastructure it owns and operates. Most revenue is generated by charging customers (and, in some cases, other market participants) regulated rates for electricity delivery ...
Fortis Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong positives: substantial capital investment ($5.6B in 2025), a $28.8B five-year capital plan with expected 7% average annual rate base growth, EPS and TSR improvement (adjusted EPS +$0.25; 1-year TSR ~24%), continued dividend growth (4% increase; 52-year streak), solid liquidity and stable S&P ratings. Challenges highlighted include disposition-related EPS losses ($0.13/share), regulatory lag (notably ~USD 700M of UNS rate base), higher finance and compensation costs, and ongoing regulatory uncertainties in Arizona and project timing/approvals (e.g., Tilbury environmental reviews). Overall, the positives — clear growth plan, strong capital deployment, improving credit outlook and shareholder returns — outweigh the moderating headwinds and uncertainties.Positive Updates
Large Capital Investment in 2025
Utilities invested $5.6 billion in capital in 2025 to strengthen systems, enhance resilience and support long-term customer needs.
Negative Updates
Asset Disposition Losses Impacting EPS
Reported EPS for 2025 was impacted by losses related to dispositions in Turks and Caicos and Belize totaling $0.13 per share (roughly half of which relate to income taxes), moderating reported results.
Read all updates
Q4-2025 Updates
Positive
Negative
Large Capital Investment in 2025
Utilities invested $5.6 billion in capital in 2025 to strengthen systems, enhance resilience and support long-term customer needs.
Read all positive updates
Company Guidance
Fortis reiterated growth and shareholder return guidance anchored by a $28.8 billion, five‑year capital plan (only 21% major projects) expected to raise rate base by $16 billion and deliver average annual rate‑base growth of 7%, supporting dividend growth guidance of 4%–6% annually through 2030; 2025 highlights included $5.6 billion of utility capital investment, reported EPS of $3.40 (+$0.16 y/y) and adjusted EPS of $3.53 (+$0.25 y/y) (Q4 reported EPS $0.83, +$0.04; Q4 adjusted +$0.07), a 4% increase in dividends paid (52nd consecutive year), an adjusted dividend payout ratio of ~70%, 1‑year total shareholder return of ~24% and 20‑year average annual TSR of ~10%, liquidity with $2.7 billion of long‑term debt issued in 2025 and nearly $4.0 billion available on credit facilities (unused $500 million ATM), S&P ratings A‑/BBB+ (stable), and noted upside/area specifics including ITC Tranche 2.1 estimated at USD 3.3–3.8 billion (mostly post‑2030), potential Arizona generation of USD 1.5–2.0 billion through 2030, and up to $300 million of incremental Tilbury LNG capital.Fortis Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.21B | 12.17B | 11.51B | 11.52B | 11.04B | 9.45B |
| Gross Profit | 3.98B | 8.80B | 5.22B | 4.86B | 4.41B | 3.97B |
| EBITDA | 5.87B | 5.89B | 5.29B | 4.92B | 4.50B | 4.02B |
| Net Income | 1.80B | 1.80B | 1.68B | 1.57B | 1.39B | 1.29B |
Balance Sheet | ||||||
| Total Assets | 76.71B | 74.83B | 75.06B | 67.41B | 65.87B | 59.01B |
| Cash, Cash Equivalents and Short-Term Investments | 359.00M | 367.00M | 220.00M | 625.00M | 209.00M | 131.00M |
| Total Debt | 35.41B | 34.67B | 33.70B | 30.03B | 29.04B | 25.95B |
| Total Liabilities | 50.23B | 48.96B | 49.21B | 44.08B | 43.03B | 38.10B |
| Stockholders Equity | 24.38B | 23.81B | 23.81B | 21.50B | 21.03B | 19.29B |
Cash Flow | ||||||
| Free Cash Flow | -2.15B | -2.17B | -1.34B | -624.00M | -791.00M | -479.00M |
| Operating Cash Flow | 3.95B | 4.06B | 3.88B | 3.54B | 3.07B | 2.91B |
| Investing Cash Flow | -5.30B | -5.36B | -5.39B | -3.74B | -4.06B | -3.49B |
| Financing Cash Flow | 1.22B | 1.46B | 1.06B | 613.00M | 1.03B | 451.00M |
Fortis Technical Analysis
Negative
77.93
Price Trends
76.95
Negative
75.65
Positive
72.32
Positive
Market Momentum
0.19
Negative
44.89
Neutral
57.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTS, the sentiment is Negative. The current price of 77.93 is above the 20-day moving average (MA) of 76.94, above the 50-day MA of 76.95, and above the 200-day MA of 72.32, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FTS.
Fortis Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | C$39.26B | 21.51 | 7.51% | 3.50% | 4.14% | 2.58% | |
64 Neutral | C$13.76B | 126.16 | 1.59% | 4.33% | -1.26% | -92.43% | |
64 Neutral | C$34.81B | 24.79 | 10.87% | 2.43% | 6.36% | 12.30% | |
59 Neutral | C$6.94B | 48.40 | 3.39% | 3.62% | 2.57% | -63.07% | |
56 Neutral | C$22.03B | 20.44 | 7.90% | 4.33% | 16.86% | 11.69% | |
53 Neutral | C$6.30B | 26.88 | 3.63% | 4.32% | 1.84% | ― |
* Utilities Sector Average
TSE:FTS
Fortis
76.26
11.47
17.70%
TSE:ACO.X
ATCO Ltd Cl I NV
68.02
18.31
36.84%
TSE:CU
Canadian Utilities A
49.60
12.85
34.95%
TSE:H
Hydro One
56.70
7.45
15.12%
TSE:AQN
Algonquin Power & Utilities
8.16
0.97
13.48%
TSE:EMA
Emera
72.10
11.84
19.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.