Fortis

FTS

Regulated Electric · Utilities

Price

$58.78

+0.11 (+0.19%)

Market Cap

$29.93B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+12.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 471.4M (2021) → 529.1M (2025)

Fortis Inc. is a Canadian utility company that delivers electricity and natural gas to homes and businesses. It owns and operates power lines, pipelines, and distribution networks across Canada, the United States, and the Caribbean. Fortis serves roughly 3.4 million customers and is one of the largest investor-owned utilities in North America.

Fortis makes money by charging regulated rates for delivering energy through its infrastructure — rates that are set and approved by government regulators, which provides steady, predictable revenue. Because regulators limit both its prices and its profits, Fortis carries low financial risk but also limited upside. The company has raised its dividend every year for nearly five decades, which reflects the stability of its cash flows. Its main growth driver is a multi-billion dollar capital investment plan to upgrade and expand its utility networks, though rising interest rates are a key risk since Fortis carries significant debt to fund that infrastructure spending.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-1.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.3%ownership

Relatively low insider ownership

Cash Runway

~3 months

$360M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Fortis has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

68.5%

Premium pricing power — 68.5% gross margin

Operating Margin

28.1%

Excellent — 28.1% operating margin

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+4.3%

Slow sales growth (4.3% YoY)

EPS YoY

-4.5%

Earnings shrinking (-4.5% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

219%

Turns 219% of profit into real cash

FCF Margin

-18.3%

Burning cash (-18.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.44

Elevated debt (1.44)

Interest Cover

2.36x

Tight — interest eats into profit (2.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

18.5x

Fair value — P/E 18.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+4.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (18.5 → 14.2)

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Dividends

Dividend Yield

3.08%

Moderate income — 3.08% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+5.1%

Dividend growing modestly (5.1% YoY)

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