Fortis Inc. CUM RD 5Y SR G (FTRSF)

Fortis Inc. CUM RD 5Y SR G (FTRSF) Utility Operations & Dividend Profile

Fortis Inc. operates as a diversified North American utility, delivering electricity and gas to over 3.4 million customers across Canada, the United States, and the Caribbean. The company's regulated transmission and distribution assets, including ITC's extensive U.S. network, underpin its stable earnings profile within the essential utilities sector.

What Is the Investment Thesis for FTRSF?

Fortis Inc. presents a research profile characterized by its stable, regulated utility business model across North America and the Caribbean. The company's extensive portfolio of eight transmission and distribution subsidiaries, serving over 3.4 million electricity and gas customers, underpins its consistent earnings potential. A significant value driver is its regulated asset base, which typically allows for predictable returns on capital investments. The company demonstrates financial stability with a profit margin of 14.8% and a gross margin of 60.8%, alongside a notable dividend yield of 6.45%, reflecting its commitment to shareholder returns. Its low Beta of 0.43 indicates lower volatility compared to the broader market. Growth catalysts include ongoing capital investments in infrastructure modernization and expansion, particularly within its ITC electric transmission operations in the U.S., and potential for rate base growth through regulatory approvals. However, as an OTC-listed security, FTRSF carries inherent risks related to lower liquidity and potentially less stringent reporting, requiring thorough due diligence from investors.

Based on FMP financials and quantitative analysis

FTRSF Key Highlights

• Market capitalization of $8.93B, reflecting its substantial presence in the utility sector.
• A P/E ratio of 6.76, indicating its valuation relative to earnings within the industry.
• Profit margin of 14.8% and a gross margin of 60.8%, demonstrating operational efficiency.
• A robust dividend yield of 6.45%, highlighting its appeal as an income-generating utility stock.
• Low Beta of 0.43, suggesting lower price volatility compared to the broader market.

Who Are FTRSF's Competitors?

FTRSF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FTRSF's Key Strengths?

• Diversified geographic footprint across North America and the Caribbean.
• Extensive regulated asset base providing stable and predictable earnings.
• Strong operational presence with over 3.4 million customers and 9800 employees.
• High gross margin of 60.8% and profit margin of 14.8% indicating efficient operations.
• Low Beta of 0.43, suggesting relative stability in market performance.

What Are FTRSF's Weaknesses?

• Exposure to regulatory risks across multiple jurisdictions.
• Capital-intensive business requiring continuous investment in infrastructure.
• OTC listing potentially limits liquidity and broader institutional investor interest.
• Unknown disclosure status on OTC market may hinder investor confidence and transparency.

What Could Drive FTRSF Stock Higher?

• Regulatory approvals for new capital expenditure projects in its North American jurisdictions, potentially expanding its rate base.
• Continued infrastructure investments by its ITC subsidiary to modernize and expand the U.S. electric transmission network.
• Organic customer growth and increased energy demand in its diverse service territories.
• Favorable outcomes in rate case proceedings across its regulated utility operations, supporting revenue stability.

What Are the Key Risks for FTRSF?

• Financial-distress signal — its Altman Z-Score of 0.50 sits in the distress zone (elevated bankruptcy risk).
• Adverse changes in regulatory policies or unfavorable rate decisions in any of its operating regions.
• Exposure to severe weather events that could damage infrastructure and disrupt service, leading to increased repair costs.
• Fluctuations in interest rates, which could impact the cost of financing its capital-intensive projects.
• The inherent risks associated with its OTC Other listing, including lower liquidity and potential for less transparent reporting.
• Cybersecurity threats targeting its critical energy infrastructure and operational technology systems.

What Are the Growth Opportunities for FTRSF?

• **Infrastructure Modernization and Expansion**: Fortis's subsidiary ITC operates over 16,000 miles of high-voltage transmission lines across seven U.S. states. Ongoing investment in upgrading and expanding this critical infrastructure represents a significant growth driver. Modernization efforts, including smart grid technologies and grid hardening against extreme weather, are essential for reliability and efficiency. These capital expenditures, often approved by regulators, contribute to an expanding rate base, allowing Fortis to earn regulated returns. This continuous investment ensures the long-term viability and capacity of its transmission network, supporting growing electricity demand and integration of new generation sources.
• **Renewable Energy Integration**: As a diversified utility, Fortis is positioned to benefit from the global transition to renewable energy. Integrating more renewable generation sources, such as solar and wind, into its transmission and distribution networks requires significant infrastructure upgrades and smart grid solutions. While Fortis has smaller stakes in generation, its core T&D business is crucial for connecting and delivering this clean energy. Investments in grid infrastructure to support intermittent renewables can lead to new regulated asset growth and enhance the company's environmental profile, aligning with broader market trends and regulatory mandates.
• **Customer Base and Demand Growth**: Serving over 3.4 million electricity and gas customers across diverse geographies in Canada, the U.S., and the Caribbean, Fortis benefits from organic population and economic growth in its service territories. As these regions expand, so does the demand for essential utility services. This natural increase in customer connections and energy consumption translates into higher revenue potential. Strategic investments in extending service lines and enhancing capacity to meet this growing demand contribute directly to the company's regulated asset base and long-term earnings stability.
• **Regulatory Asset Base (RAB) Growth**: The regulated utility business model allows companies like Fortis to earn a return on their invested capital, known as the regulatory asset base. By making prudent capital investments in infrastructure, such as transmission lines, distribution networks, and system upgrades, Fortis can expand its RAB. Regulatory bodies typically approve these investments, allowing the company to recover costs and earn a specified rate of return through customer rates. This mechanism provides a clear pathway for consistent, predictable earnings growth, incentivizing continuous improvement and expansion of essential utility services.
• **Operational Efficiency and Technology Adoption**: Continuous improvement in operational efficiency through technology adoption presents a growth opportunity. Implementing advanced analytics, automation, and predictive maintenance across its transmission and distribution networks can reduce operational costs, minimize outages, and improve service reliability. These efficiencies can lead to higher profit margins (currently 14.8%) and better utilization of existing assets. Furthermore, investments in digital infrastructure can enhance customer experience and streamline regulatory compliance, contributing to overall business strength and potentially supporting future rate case approvals.

What Opportunities Does FTRSF Have?

• Continued investment in grid modernization and smart grid technologies.
• Expansion of renewable energy integration into existing networks.
• Organic growth in customer base within existing service territories.
• Potential for rate base growth through approved capital expenditures.
• Efficiency improvements through technology adoption and operational optimization.

What Threats Does FTRSF Face?

• Adverse changes in regulatory policies or rate case outcomes.
• Severe weather events impacting infrastructure and service reliability.
• Rising interest rates increasing the cost of capital for infrastructure projects.
• Cybersecurity threats to critical utility infrastructure.
• Increased competition or alternative energy solutions in its markets.

What Are FTRSF's Competitive Advantages?

• Extensive regulated asset base, including transmission lines and distribution networks, which are difficult to replicate.
• Geographic diversification across Canada, the U.S., and the Caribbean, reducing exposure to single-market risks.
• High barriers to entry in the utility sector due to significant capital requirements and regulatory hurdles.
• Essential service provider status, ensuring consistent demand for electricity and gas.
• Long-standing operational history and established customer relationships.

What Does FTRSF Do?

Fortis Inc. is a prominent North American diversified utility company, established with a foundational commitment to delivering essential electricity and gas services. The company has evolved significantly to become a major operator of utility transmission and distribution assets across Canada, the United States, and select Caribbean nations. Fortis directly serves a substantial customer base exceeding 3.4 million electricity and gas customers, underscoring its critical role in the energy infrastructure of these regions. Its operational footprint is characterized by ownership and management of eight distinct utility transmission and distribution subsidiaries, strategically positioned to ensure reliable service delivery. A cornerstone of Fortis's U.S. operations is its subsidiary, ITC, which specializes in electric transmission. ITC manages an extensive network of over 16,000 miles of high-voltage transmission lines, spanning seven U.S. states. This robust transmission infrastructure is vital for the efficient movement of electricity across regional grids, supporting both urban and rural communities. Beyond its core transmission and distribution activities, Fortis also holds smaller, yet strategic, stakes in electricity generation facilities, contributing to a diversified energy portfolio. Furthermore, its involvement in several Caribbean utilities extends its geographic reach and diversifies its regulatory exposure. The company's business model is largely centered on regulated assets, which typically provide stable and predictable revenue streams, a characteristic often sought by institutional investors. This regulated framework, combined with its broad geographic and operational diversification, positions Fortis as a key player in the North American utility landscape, focused on long-term infrastructure development and reliable energy delivery.

What Products and Services Does FTRSF Offer?

• Own and operate eight utility transmission and distribution subsidiaries.
• Deliver electricity and gas to over 3.4 million customers.
• Operate in Canada, the United States, and several Caribbean utilities.
• Manage over 16,000 miles of high-voltage electric transmission lines through subsidiary ITC in seven U.S. states.
• Hold smaller stakes in electricity generation facilities.
• Focus on regulated utility operations for stable earnings.

How Does FTRSF Make Money?

• Generate revenue from regulated rates charged for electricity and gas transmission and distribution services.
• Earn a regulated return on capital investments in infrastructure (rate base).
• Benefit from long-term contracts and franchises for utility operations.
• Diversify revenue streams across multiple geographic regions and regulatory environments.

What Industry Does FTRSF Operate In?

Fortis Inc. operates within the highly regulated utilities sector, specifically in electric transmission and distribution. This industry is characterized by stable demand for essential services, significant capital expenditures for infrastructure maintenance and expansion, and a regulatory framework that often provides predictable returns on investment. Market trends include increasing demand for grid modernization, integration of renewable energy sources, and enhanced grid resilience against climate events. Fortis's position as a major owner and operator of transmission and distribution assets in North America, particularly through its ITC subsidiary, places it as a critical infrastructure provider. The competitive landscape involves other large, regulated utilities, but Fortis differentiates itself through its diversified geographic footprint across Canada, the U.S., and the Caribbean, and its focus on both electricity and gas delivery.

Who Are FTRSF's Key Customers?

• Residential electricity and gas consumers.
• Commercial businesses requiring electricity and gas services.
• Industrial clients with significant energy demands.
• Communities and municipalities within its service territories.

FY2026 estForward Outlook

Wall Street analysts project Fortis Inc. CUM RD 5Y SR G revenue of about $13.10B for fiscal 2026, with EPS near $3.61. The estimate reflects 7 contributing analysts.

FTRSF Valuation & Market Position

With a $8.93B market cap, Fortis Inc. CUM RD 5Y SR G sits in the mid-cap segment of the market. Relative to its peer group, FTRSF's quantitative score of 56/100 is roughly in line with the peer average of 58/100.

ROE 8%Key Financial Metrics

Return on equity for Fortis Inc. CUM RD 5Y SR G stands at 7.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.3%, showing how much profit it generates from its asset base. FTRSF trades at a trailing price-to-earnings ratio of 6.82, below the Utilities sector average of ~28x. Its free cash flow yield is -18.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.49 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 14.7%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

Fortis Inc. CUM RD 5Y SR G's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.50 places it in the distress zone, a signal of elevated financial risk.

Company Profile

Fortis Inc. CUM RD 5Y SR G operates in the Regulated Electric industry within the Utilities sector. The company is led by CEO David Gerard Hutchens. FTRSF has traded publicly since 2019.

FTRSF Financials

FTRSF Latest News

FTRSF Analyst Consensus

FTRSF MoonshotScore

Fortis Inc. CUM RD 5Y SR G Utilities Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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