# Fortis (FTS.TO)

Canonical: https://gigainvestors.com/s/FTS.TO

Analysis as of: 2026-10-16T07:34:23.705Z. Financial observations: FY1996–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 77.52 per share; close as of 2026-10-15.

Estimated value: low CAD 22.13 per share, central CAD 25.15 per share, high CAD 29.16 per share. Buy at or below the central value CAD 25.15 per share. Valuation as of 2026-10-16T07:34:23.705Z; scenarios are not confidence intervals.

Expected annual return: 5.2% at the stated quote. About 5.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.30×

- FY2018: 0.28×

- FY2019: 0.35×

- FY2020: 0.28×

- FY2021: 0.26×

- FY2022: 0.25×

- FY2023: 0.27×

- FY2024: 0.29×

- FY2025: 0.29×

- LTM to Jun 2026: 0.28×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.5%

- ROIC, second-lowest year: 6.2%

- Typical minus recent gross margin: -2.2 pp

- Typical gross margin (annual median): 43.2%

- Recent gross margin (lower of latest and 3-year median): 45.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 37.4%

- ROIC including acquisitions, ten-year median: 1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.0%

- FY2017: 6.5%

- FY2018: 7.4%

- FY2019: 8.9%

- FY2020: 6.8%

- FY2021: 6.3%

- FY2022: 6.2%

- FY2023: 6.6%

- FY2024: 6.3%

- FY2025: 6.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 2.0B

- Net income, five-year total: CAD 7.7B

- Return on incremental invested capital: 7.3%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.9 pp

- Working capital / revenue, final three-year average: 9.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.94×

- FY2022: 0.95×

- FY2023: 0.60×

- FY2024: -1.01×

- FY2025: 0.11×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.5% vs 6.4%

- Per-share earnings: 2.43 to 3.37 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: 1.6%

- Market cap gain: CAD 19B

- Cumulative retained earnings: CAD 3.5B

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: 1.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.2%

- Per-share value change: CAD 0.94

- Per-share value, starting three-year median: CAD 2.43

- Per-share value, ending three-year median: CAD 3.37

- Average buyback yield: 1.2%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 12B

- Cumulative net income, 10 years: CAD 14B

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 6.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 1.62

- FY2017: CAD 2.43

- FY2018: CAD 2.71

- FY2019: CAD 3.71

- FY2020: CAD 2.72

- FY2021: CAD 2.72

- FY2022: CAD 2.90

- FY2023: CAD 3.21

- FY2024: CAD 3.37

- FY2025: CAD 3.55

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.60×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.5%

- FY2017: -3.5%

- FY2018: -2.6%

- FY2019: -1.7%

- FY2020: -2.5%

- FY2021: -2.7%

- FY2022: -2.6%

- FY2023: -2.9%

- FY2024: -2.9%

- FY2025: -3.0%

## Holders

## Price story

Price needs cash profits to grow 15.2% a year for ten years · "Fortis beats Q4 earnings expectations on strong regulated utility growth" (finance.yahoo.com, Feb 2026) · sales +1.3%

Story as of 2026-10-16T10:00:00.407Z; price observation 2026-10-15.

Price needs cash profits to grow 15.2% a year for ten years

- 2025-08-01: Fortis Q2 Net Earnings, Revenue Rise; Annual Capital plan "On Track" ([finance.yahoo.com](https://finance.yahoo.com/news/fortis-q2-net-earnings-revenue-115348913.html))

- 2025-11-05: Fortis (TSX:FTS) Margin Gains Reinforce Steady-Growth Narrative Against Softer Canadian Market Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/fortis-tsx-fts-margin-gains-201739090.html))

- 2026-02-12: Fortis beats Q4 earnings expectations on strong regulated utility growth ([finance.yahoo.com](https://finance.yahoo.com/news/fortis-beats-q4-earnings-expectations-114252728.html))

### Sales · FY2025–2026

sales +1.3%; source https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm; observed 2026-02-12.

- FY2017: CAD 8.3B 

- FY2018: CAD 8.4B 

- FY2019: CAD 8.8B 

- FY2020: CAD 8.9B 

- FY2021: CAD 9.4B 

- FY2022: CAD 11B 

- FY2023: CAD 12B 

- FY2024: CAD 12B 

- FY2025: CAD 12B 

- FY2026: CAD 12B 

### Gross margin · FY2025

gross margin 72.3%; source https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm; observed 2026-02-12.

- FY2016: 38.0% 

- FY2017: 44.1% 

- FY2018: 43.0% 

- FY2019: 43.4% 

- FY2020: 44.1% 

- FY2021: 42.1% 

- FY2022: 39.9% 

- FY2023: 42.2% 

- FY2024: 45.4% 

- FY2025: 72.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are CAD 12.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm (filed 2026-02-12); FY2025: revenue 12170000000; grossProfit 8799000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FTS.TO: Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. The company generates, transmits, and distributes electricity to approximately 459,000 retail customers in southeastern Arizona, including the greater Tucson metropolitan area; and 107,000 retail customers in southeastern Arizona with an aggregate capacity of 3, 443 megawatts (MW). It also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 43 MW; and distributes natural gas to approximately 1,105,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 615,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 70,000 customers in Ontario; approximately 280,000 customers in Newfoundland; approximately 35,000 customers on Grand Cayman, Cayman Islands; and approximately 92,000 customers on Maritime Electric. It also owns and operates approximately 91,100 circuit Kilometers (km) of distribution lines; and approximately 51,700 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.

### Why customers stay

Margins ranged from 42.2% to 72.3% during 2023–25; it earns 6.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 42.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 45.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 72.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.04972869247342656],[2017,0.0652540198042296],[2018,0.07365467646736731],[2019,0.08946718631765728],[2020,0.06822480972676093],[2021,0.06339866149030046],[2022,0.06153213953542461],[2023,0.06579000552404306],[2024,0.0626571197734281],[2025,0.06380949450590573]]; median 0.06453175715506766. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 7.3% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 1845000000; upkeep 1179000000; owner earnings 1028000000. Growth capex / owner earnings = 1.7947470817120623.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 1457574529.9011211; upkeep 2262425470.098879; owner earnings 706974529.9011211. Growth capex / owner earnings = 2.061707272686302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 1881000000; upkeep 1505000000; owner earnings 1221000000. Growth capex / owner earnings = 1.5405405405405406.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 2197000000; upkeep 1668000000; owner earnings 1320000000. Growth capex / owner earnings = 1.6643939393939393.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 1845118096.0885406; upkeep 2323881903.9114594; owner earnings 946518096.0885406. Growth capex / owner earnings = 1.9493743476362886.

- Source: https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm (filed 2026-02-12); FY2025: growth capex 2653855041.0318737; upkeep 3580144958.9681263; owner earnings 197455041.0318737. Growth capex / owner earnings = 13.440300268674738.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Incremental return on capital 0.07309206792857416, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,388000000],[2017,484000000],[2018,525000000],[2019,561000000],[2020,851000000],[2021,671000000],[2022,737000000],[2023,768000000],[2024,818000000],[2025,873000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FTS.TO SharesStats.PercentInsiders = 0.202 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.2% yearly over ten years; actual decline was 17.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.20754241894520475. Price 77.52; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.7893277893277895 → FY2025 0.38977556849989825. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 44.15 per share

- 2016-11: CAD 40.04 per share

- 2016-12: CAD 41.46 per share

- 2017-01: CAD 41.84 per share

- 2017-02: CAD 42.13 per share

- 2017-03: CAD 44.07 per share

- 2017-04: CAD 44.42 per share

- 2017-05: CAD 44.47 per share

- 2017-06: CAD 45.58 per share

- 2017-07: CAD 45.46 per share

- 2017-08: CAD 45.69 per share

- 2017-09: CAD 44.78 per share

- 2017-10: CAD 47.51 per share

- 2017-11: CAD 47.50 per share

- 2017-12: CAD 46.11 per share

- 2018-01: CAD 43.46 per share

- 2018-02: CAD 41.93 per share

- 2018-03: CAD 43.49 per share

- 2018-04: CAD 43.10 per share

- 2018-05: CAD 41.43 per share

- 2018-06: CAD 42.02 per share

- 2018-07: CAD 42.77 per share

- 2018-08: CAD 42.72 per share

- 2018-09: CAD 41.88 per share

- 2018-10: CAD 43.50 per share

- 2018-11: CAD 46.15 per share

- 2018-12: CAD 45.51 per share

- 2019-01: CAD 46.86 per share

- 2019-02: CAD 47.45 per share

- 2019-03: CAD 49.39 per share

- 2019-04: CAD 49.52 per share

- 2019-05: CAD 51.05 per share

- 2019-06: CAD 51.71 per share

- 2019-07: CAD 52.02 per share

- 2019-08: CAD 54.97 per share

- 2019-09: CAD 56.01 per share

- 2019-10: CAD 54.72 per share

- 2019-11: CAD 52.04 per share

- 2019-12: CAD 53.88 per share

- 2020-01: CAD 57.72 per share

- 2020-02: CAD 54.32 per share

- 2020-03: CAD 54.27 per share

- 2020-04: CAD 53.94 per share

- 2020-05: CAD 53.01 per share

- 2020-06: CAD 51.63 per share

- 2020-07: CAD 54.55 per share

- 2020-08: CAD 52.17 per share

- 2020-09: CAD 54.44 per share

- 2020-10: CAD 52.63 per share

- 2020-11: CAD 52.29 per share

- 2020-12: CAD 52.00 per share

- 2021-01: CAD 51.72 per share

- 2021-02: CAD 49.00 per share

- 2021-03: CAD 54.53 per share

- 2021-04: CAD 54.83 per share

- 2021-05: CAD 54.82 per share

- 2021-06: CAD 54.87 per share

- 2021-07: CAD 56.58 per share

- 2021-08: CAD 57.80 per share

- 2021-09: CAD 56.19 per share

- 2021-10: CAD 55.09 per share

- 2021-11: CAD 55.26 per share

- 2021-12: CAD 61.03 per share

- 2022-01: CAD 60.38 per share

- 2022-02: CAD 58.08 per share

- 2022-03: CAD 61.83 per share

- 2022-04: CAD 62.51 per share

- 2022-05: CAD 63.79 per share

- 2022-06: CAD 60.85 per share

- 2022-07: CAD 60.49 per share

- 2022-08: CAD 57.94 per share

- 2022-09: CAD 52.48 per share

- 2022-10: CAD 53.15 per share

- 2022-11: CAD 54.14 per share

- 2022-12: CAD 54.18 per share

- 2023-01: CAD 54.67 per share

- 2023-02: CAD 54.00 per share

- 2023-03: CAD 57.45 per share

- 2023-04: CAD 59.49 per share

- 2023-05: CAD 57.10 per share

- 2023-06: CAD 57.09 per share

- 2023-07: CAD 56.21 per share

- 2023-08: CAD 52.99 per share

- 2023-09: CAD 51.59 per share

- 2023-10: CAD 55.06 per share

- 2023-11: CAD 54.36 per share

- 2023-12: CAD 54.51 per share

- 2024-01: CAD 53.94 per share

- 2024-02: CAD 52.33 per share

- 2024-03: CAD 53.52 per share

- 2024-04: CAD 54.06 per share

- 2024-05: CAD 54.51 per share

- 2024-06: CAD 53.17 per share

- 2024-07: CAD 57.72 per share

- 2024-08: CAD 59.30 per share

- 2024-09: CAD 61.45 per share

- 2024-10: CAD 60.23 per share

- 2024-11: CAD 62.59 per share

- 2024-12: CAD 59.73 per share

- 2025-01: CAD 61.90 per share

- 2025-02: CAD 63.44 per share

- 2025-03: CAD 65.55 per share

- 2025-04: CAD 68.27 per share

- 2025-05: CAD 67.05 per share

- 2025-06: CAD 65.02 per share

- 2025-07: CAD 67.80 per share

- 2025-08: CAD 68.35 per share

- 2025-09: CAD 70.59 per share

- 2025-10: CAD 70.50 per share

- 2025-11: CAD 73.26 per share

- 2025-12: CAD 71.36 per share

- 2026-01: CAD 72.60 per share

- 2026-02: CAD 78.47 per share

- 2026-03: CAD 77.61 per share

- 2026-04: CAD 77.68 per share

- 2026-05: CAD 76.26 per share

- 2026-06: CAD 81.25 per share

- 2026-07: CAD 79.80 per share

- 2026-08: CAD 76.59 per share

- 2026-09: CAD 75.17 per share

- 2026-10: CAD 76.77 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 14.31 per share, central CAD 17.65 per share, high CAD 20.54 per share

- FY2017: low CAD 23.02 per share, central CAD 27.25 per share, high CAD 31.65 per share

- FY2018: low CAD 15.34 per share, central CAD 17.41 per share, high CAD 20.15 per share

- FY2019: low CAD 17.05 per share, central CAD 19.34 per share, high CAD 22.40 per share

- FY2021: low CAD 17.66 per share, central CAD 20.35 per share, high CAD 23.65 per share

- FY2022: low CAD 21.22 per share, central CAD 25.43 per share, high CAD 29.61 per share

- FY2023: low CAD 22.19 per share, central CAD 25.43 per share, high CAD 29.43 per share

- FY2024: low CAD 21.58 per share, central CAD 25.59 per share, high CAD 29.79 per share

- FY2025: low CAD 21.82 per share, central CAD 24.80 per share, high CAD 28.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:10.872Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1666175/000166617526000013/fts-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.