Fortis Inc. Common Shares (FTS)

FairStock Score: 46/100 — MIXED

Key Financials

Strengths

• Attractive 3.3% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Fortis Inc. Common Shares is a mid-cap utilities company valued at $28.7 billion. The business generates $12.2 billion in annual revenue with a 3.5% net margin. From a quality standpoint, Fortis shows distressed Altman Z-Score of 0.5 warrants caution and modest 8% ROE. On valuation, the stock is reasonably priced at 22.7x earnings, with trades above its Graham Number with a negative 10% margin. Growth dynamics show revenue growing at 4.4% and profit growth of 7.0%. The 3.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 47/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Sluggish 4% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer