Fortis Stock (FTS:TSX) gets a Hold rating from analysts

by: Gillian Lawrence
Fortis stock

Fortis Stock Analysis:

 Analysts rate Fortis stock with a consensus Hold rating and a 12-month average target price of $57.25 per share.
 
According to Fortis stock projections, the average 12-month target price is CAD 57.25. Based on 12 analysts’ projections for Fortis.
 
The average analyst rating for Fortis is Hold. Fortis stock analysis by Stock Target Advisor is Neutral. Based on 6 positive and 7 negative indications.
 
The stock price of Fortis was CAD 52.87 at the most recent closing. Fortis share price changed by +0.53% over the previous week, +5.17% over the previous month, and -5.82% over the previous year.
 

About Fortis (FTS:CA:TSX)

 
Fortis provides gas and electricity services in the USA, Canada and the Caribbean. It has a combined capacity of 3,485 megawatts (MW), including 53 MW of solar capacity and 252 MW of wind capacity. It generates, transmits, and distributes energy. Fortis provides for:
  • 438,000 retail customers in Southeast Arizona
  • 100,000 retail customers in Arizona’s Mohave and Santa Cruz counties.
 Apart from this, Fortis provides wholesale energy in the Western United States.
 
Fortis distributes natural gas to over 1,065,000 users in British Columbia, Canada. They are residential, industrial and commercial users.
 
Owns 65 MW of combined gas-fired and hydroelectric-producing capacity.

Electricity Distribution

It also owns and manages the electricity distribution network.
 
Provides service to about 577,000 customers in central and southern Alberta.

Power Distribution

 
Owns four hydroelectric generating facilities with a combined capacity of 225 MW,
 
Offers management, operation, and maintenance services to five hydroelectric generating facilities.
 
With installed producing capacities of 143 MW in Newfoundland and Labrador’s island region.
 
130 MW in Prince Edward Island, the company distributes power.
 
Additionally, it serves about 68,000 customers in Ontario,
 
272,000 consumers in Newfoundland and Labrador,
 
32,000 customers on Grand Cayman in the Cayman Islands,
 
16,000 customers on a few Turks and Caicos islands.

Other Services

 
The company also owns long-term contractual generation assets in Belize. Including the Aitken Creek natural gas storage facility.
 
3 hydroelectric-producing facilities with a combined capacity of 51 MW.
 
It owns and manages about 50,500 km of natural gas pipelines as well as about 90,200 km of distribution lines.
 
With its corporate headquarters in St. John’s, Canada, Fortis got established in 1885.
 

Fundamental Stock Analysis:

Positive Fundamentals:

High market capitalization. This organization is among the top quartile and is one of the biggest in its industry. These businesses are more reliable.
 
Superior returns on riskFortis stock has outperformed its sector rivals on a risk-adjusted basis. This is over the course of at least a 12-month holding period.
 
Priced below what the book would bear.  On a price-to-book value metric, the stock is trading at a low price compared to its peers and is in the top quartile. It can be low-priced. Be sure there isn’t a specific explanation by looking at its financial performance.
 
A healthy cash flow.  The last four quarters saw positive total cash flow for the organization.
 
A favourable free cash flow.  The last four quarters saw the company generate positive total free cash flow.
 
Cheap based on free cash flow.  On a price-to-free cash flow ratio, the stock is trading at a low price compared to its peers and is in the top quartile. It might be low-priced. Be sure there isn’t a specific explanation by looking at its financial performance.
 

Negative Fundamentals:

Expensive in relation to earnings.  The stock is trading above the sector median and at a premium to its peers based on price to earnings.
 
Low equity return. The company has produced a lower-than-average return on equity. This is during the past four quarters.
 
Inadequate capitalization. The company produced a lower median return on invested capital. This is during the past four quarters.
 
Poor asset return.  The management of the company produced a lower median return on assets. This was during the past four quarters.
 
Leveraged.  Debt to an equity basis, the company is in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow.
 
Priced based on free cash flow.  On a price-to-free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
 
Low growth in earningsIn comparison, this stock’s five-year median earnings growth was lower than average.
 

Fortis Fundamental Analysis

The fundamental analysis for Fortis stock is graded at a  score of 4.6 out of 10. Where the stock is Neutral (not bearish or bullish).
Disclaimer

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