Want to see TSE:FTS full AI Analyst Report?
Top Page
Fortis
(TSX:FTS)
Select Model
Select Model
Rating:63Neutral
Price Target:
C$85.00
▲(11.59% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily constrained by cash-flow quality and funding dependence (persistently negative free cash flow) despite solid, utility-like earnings resilience. The earnings call adds support via reiterated long-term rate-base and dividend growth guidance and visible capital plan execution, while near-term technicals are soft and valuation looks somewhat full for the profile.
Positive Factors
Regulated utility business model
Fortis’s regulated transmission and distribution footprint produces predictable, cost‑of‑service revenue streams and authorized returns. That structural model supports durable cash flow generation and rate‑base recoveries, insulating core earnings from competitive commodity swings and supporting long‑term planning.
Negative Factors
Persistently negative free cash flow
Consistent negative FCF means capital spending outpaces internally generated cash, increasing reliance on external financing to fund growth and dividends. Over time this dependence heightens exposure to credit markets and can strain liquidity if funding conditions tighten or capex overruns occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility business model
Fortis’s regulated transmission and distribution footprint produces predictable, cost‑of‑service revenue streams and authorized returns. That structural model supports durable cash flow generation and rate‑base recoveries, insulating core earnings from competitive commodity swings and supporting long‑term planning.
Read all positive factors
Fortis (FTS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$38.91B
Dividend Yield3.4%
Average Volume (3M)1.59M
Price to Earnings (P/E)22.1
Beta (1Y)0.25
Revenue Growth3.84%
EPS Growth0.11%
CountryCA
Employees9,900
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.18
Shares Outstanding510,900,000
10 Day Avg. Volume1,399,267
30 Day Avg. Volume1,593,651
Financial Highlights & Ratios
PEG Ratio4.25
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$81.92Price Target Upside7.55% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)3.62
Revenue Forecast (FY)C$12.61B
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. The company generates, transmits, and distributes electricity to approximately 459,000 retail customers in southeastern Arizona,...
How the Company Makes Money
Fortis primarily makes money through regulated utility operations. Its main revenue streams come from (1) delivering electricity over transmission and distribution networks and (2) distributing natural gas through local gas networks. In regulated ...
Fortis Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive growth story: core regulated utilities are executing a large capital plan, management secured a key approval for Tilbury 1B, meaningful sustainability progress was reported, credit ratings and funding execution remain solid, and multiple large growth opportunities (transmission and data center-related generation) are in the pipeline. Offsetting items include modest near-term EPS growth, regulatory timing/lag issues, FX and disposition-related impacts, and uncertainty around the timing, approvals and funding of large above-plan projects. On balance, the positive execution, approvals and growth visibility outweigh the challenges, but investors should monitor regulatory outcomes and funding assumptions as the 5-year plan is refreshed in the fall.Positive Updates
Strong Capital Investment and On-Track 2026 Plan
Invested $2.7 billion through June and reported nearly half of the annual capital plan invested; reaffirmed expectation to invest $5.6 billion in 2026 with major projects tracking well and average annual rate base growth expected of 7% through 2030.
Negative Updates
Modest EPS Growth and Headwinds to Earnings
Q2 EPS rose only $0.02 year-over-year to $0.78 (≈+2.6%); corporate and segment results were moderated by higher finance costs, stock-based compensation at ITC, timing of operating costs, regulatory lag (rate base growth not yet reflected in customer rates), and lower wholesale margins at UNS which drove a year-to-date EPS decline of $0.03 at UNS.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Capital Investment and On-Track 2026 Plan
Invested $2.7 billion through June and reported nearly half of the annual capital plan invested; reaffirmed expectation to invest $5.6 billion in 2026 with major projects tracking well and average annual rate base growth expected of 7% through 2030.
Read all positive updates
Company Guidance
Fortis reiterated a disciplined growth and funding outlook: it remains on pace to invest about $5.6 billion in 2026 (≈$2.7 billion invested through June, nearly half the annual plan), expects average annual rate base growth of ~7% through 2030, and maintains 4%–6% annual dividend growth guidance through 2030 (52 consecutive years of increases). Key project metrics include Tilbury 1B (provincial Order in Council enabling roughly $2.0 billion of regulated rate base with ~$350 million currently in the 5‑year plan; potential construction mid‑2027 and in service as early as 2031), ITC’s MISO Tranche 2.1 awarded spend of USD 3.3B–3.8B beyond 2030, and potential TEP generation investment of USD 1.5B–2.0B for incremental data‑center phases; the June Roadrunner Reserve battery (200 MW / 800 MWh) can serve ~42,000 homes for 4 hours. Fortis noted customer rate benefits (Tilbury 1A marine LNG ~1.5% rate benefit since 2024; Eagle Mountain pipeline expected ~1.5% when in service), H1 issuance of $2.1 billion long‑term debt, planned funding from cash from operations/utility debt/DRIP, confirmed issuer unsecured ratings (S&P A‑ / BBB+ unsecured; Fitch BBB+), and that a refreshed 5‑year capital plan will be released with Q3 results (TEP rate case decision expected by mid‑November with implementation in December); Q2 EPS was $0.78 and YTD EPS $1.76.Fortis Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
39
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.33B | 12.17B | 11.51B | 11.52B | 11.04B | 9.45B |
| Gross Profit | 3.48B | 8.80B | 5.22B | 4.86B | 4.41B | 3.97B |
| EBITDA | 6.02B | 5.89B | 5.29B | 4.92B | 4.50B | 4.02B |
| Net Income | 1.81B | 1.80B | 1.68B | 1.57B | 1.39B | 1.29B |
Balance Sheet | ||||||
| Total Assets | 78.76B | 74.83B | 75.06B | 67.41B | 65.87B | 59.01B |
| Cash, Cash Equivalents and Short-Term Investments | 384.00M | 367.00M | 220.00M | 625.00M | 209.00M | 131.00M |
| Total Debt | 36.33B | 34.67B | 33.70B | 30.03B | 29.04B | 25.95B |
| Total Liabilities | 51.30B | 48.96B | 49.21B | 44.08B | 43.03B | 38.10B |
| Stockholders Equity | 25.30B | 23.81B | 23.81B | 21.50B | 21.03B | 19.29B |
Cash Flow | ||||||
| Free Cash Flow | -1.88B | -2.17B | -1.34B | -624.00M | -791.00M | -479.00M |
| Operating Cash Flow | 4.28B | 4.06B | 3.88B | 3.54B | 3.07B | 2.91B |
| Investing Cash Flow | -5.13B | -5.36B | -5.39B | -3.74B | -4.06B | -3.49B |
| Financing Cash Flow | 1.00B | 1.46B | 1.06B | 613.00M | 1.03B | 451.00M |
Fortis Technical Analysis
Negative
76.17
Price Trends
78.81
Negative
77.94
Negative
75.52
Negative
Market Momentum
-0.72
Negative
35.38
Neutral
35.58
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 76.17 is below the 20-day moving average (MA) of 76.72, below the 50-day MA of 78.81, and above the 200-day MA of 75.52, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 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% | |
64 Neutral | C$31.64B | 21.91 | 11.08% | 2.65% | 8.63% | 12.60% | |
63 Neutral | C$38.91B | 22.11 | 7.43% | 3.40% | 3.84% | 0.11% | |
62 Neutral | C$7.44B | 44.66 | 3.90% | 2.85% | 4.81% | -58.62% | |
59 Neutral | C$14.00B | 315.38 | 1.88% | 3.66% | 1.16% | -89.49% | |
56 Neutral | C$21.39B | 21.60 | 7.51% | 4.28% | 10.83% | 7.87% | |
49 Neutral | C$5.96B | 29.82 | 3.20% | 4.77% | 5.62% | ― |
* Utilities Sector Average
TSE:FTS
Fortis
75.39
9.57
14.53%
TSE:ACO.X
ATCO Ltd Cl I NV
72.35
25.21
53.47%
TSE:CU
Canadian Utilities A
50.46
13.92
38.11%
TSE:H
Hydro One
51.70
3.89
8.13%
TSE:AQN
Algonquin Power & Utilities
7.51
0.12
1.68%
TSE:EMA
Emera
68.48
6.72
10.88%
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.