Fortis Inc. Common Shares (FTS)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Fortis as a regulated utility with a defensive profile: FairStock shows beta 0.41 and dividend yield 3.42%, and the company serves electric and gas customers across Canada, the U.S., and the Caribbean. In fiscal Q2 2026, filed figures show revenue of $2.9B, net income of $417.0M, and a 14.23% margin. That is a real, profitable business, but quality is only middling. FairStock calculations from the provided data show ROE of 7.47%, ROCE of 2.96%, and a Piotroski F-score of 6/9. The balance sheet is levered: debt-to-equity 1.32 and an Altman Z-score of 0.46. More troubling, trailing free cash flow is -$2.1B and the FCF yield is -7.2%, so capital spending is outrunning cash generation. At the 2026-10-26 close of $57.53, valuation looks full: FairStock P/E 23.67, P/B 1.74, PEG 7.41, and EV/EBITDA 10.86. The Graham Number is $52.03, leaving the price about 11.38% above that conservative anchor. Growth appears modest from the latest quarter and broader data. A regulated service territory can be a narrow moat, but Fortis does not show the returns or cash generation I want at this price. It looks like a stable low-beta income utility, not a bargain; FairStock score 45/100 fits that picture.

In plain English: Fortis is a regulated electric and gas utility serving customers in Canada, the United States, and the Caribbean. In the latest reported quarter (fiscal Q2 2026), it earned $417.0 million on $2.9 billion of revenue, so the business is profitable and stable, but returns are modest, debt is high, and cash spending is running ahead of cash coming in. At $57.53, the shares look full versus earnings and net assets, with little cushion for error.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer