Fortis Inc. (FTS.TO) stock analysis

In our weekly check, Fortis Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Fortis Inc.

Fortis Inc. is an Utilities company (Regulated Electric) based in Canada, listed on TSX as FTS.TO.

What our checks show for FTS.TO

Red flags

• Net debt is 6x a year of EBITDA (debt/equity 1.44). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 13.9 points, to 28.2%: costs are rising faster than prices.
• Free cash flow is negative (-15.3% of revenue): the business spends more cash than it brings in.
• Return on capital (ROCE) is only 4.9%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 0.7 points from today's 14.7%.
• Revenue grew only 3.7% a year over the last 3 years.
• Recovering from its deepest fall took about 1.8 years.

Strengths

• The net margin rose by 1 points over 5 years, to 14.7%.
• Operating cash flow is 2.36x net profit: the profit arrives as real cash.
• A large company: market value $29.61 billion.
• The price moves calmly: 14.2% annual volatility.
• Beta 0.41: the stock usually moves less than the market.

Next earnings report: 2026-11-03

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Questions

What grade does Fortis Inc. (FTS.TO) have?

In our weekly check, Fortis Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of FTS.TO stock?

This week's biggest flags for Fortis Inc.: High debt, Gross margin falling, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does Fortis Inc. do?

Fortis Inc. is an Utilities company (Regulated Electric) based in Canada, listed on TSX as FTS.TO.

When does Fortis Inc. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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