Fortis Inc. (FTS)

Fortis Inc. is a diversified utility company operating across North America and the Caribbean, providing electricity and gas services. With a focus on regulated assets and sustainable growth, Fortis delivers essential services to over 3.2 million customers.

47/100 AI Score MCap 26B Vol 2M

Company Overview

CEODavid Gerard Hutchens
Employees9800
HeadquartersSaint John's, NF, CA
IPO Year2010
SectorUtilities

Fortis Inc. (FTS) is a stable, regulated utility leader in North America and the Caribbean, offering investors a reliable dividend yield of 3.37% and a proven track record of growth through strategic acquisitions and infrastructure investments, making it a compelling long-term investment.

Investment Thesis

Fortis Inc. presents a compelling investment opportunity due to its stable, regulated business model and consistent dividend yield of 3.37%. The company's strategic focus on regulated assets across diverse geographic regions provides a predictable revenue stream and mitigates risk. With a P/E ratio of 21.02 and a healthy profit margin of 14.7%, Fortis demonstrates financial stability and efficient operations. Upcoming infrastructure investments and expansions in renewable energy capacity are expected to drive future growth. The company's low beta of 0.43 indicates lower volatility compared to the broader market, making it an attractive option for risk-averse investors seeking long-term, stable returns. Fortis's commitment to sustainable energy solutions positions it favorably in the evolving energy market, further enhancing its long-term growth potential.

Key Highlights

  • Market capitalization of $27.30 billion reflects Fortis's significant presence and stability in the utility sector.
  • Dividend yield of 3.37% provides a consistent income stream for investors, supported by the company's regulated business model.
  • Profit margin of 14.7% demonstrates efficient operations and profitability within the utility industry.
  • Low beta of 0.43 indicates lower volatility compared to the broader market, making it a stable investment option.
  • Presence in Canada, the United States, and the Caribbean diversifies revenue streams and reduces geographic risk.

Competitors

Strengths

  • Stable, regulated business model.
  • Diversified geographic presence.
  • Consistent dividend yield.
  • Extensive infrastructure network.

Weaknesses

  • Exposure to regulatory risks.
  • Dependence on infrastructure investments.
  • Vulnerability to weather-related events.
  • Limited growth potential compared to other sectors.

Catalysts

  • Ongoing: Infrastructure investments and upgrades to improve efficiency and reliability.
  • Upcoming: Potential acquisitions of other regulated utility companies.
  • Ongoing: Expansion of renewable energy portfolio to meet growing demand for clean energy.
  • Ongoing: Regulatory approvals for new projects and rate increases.

Risks

  • Potential: Changes in government regulations could impact profitability.
  • Potential: Rising interest rates could increase borrowing costs.
  • Potential: Economic downturns could reduce demand for electricity and natural gas.
  • Ongoing: Weather-related events could disrupt operations and damage infrastructure.
  • Ongoing: Delays in project approvals and construction could impact growth.

Growth Opportunities

  • Expansion of Renewable Energy Portfolio: Fortis has the opportunity to significantly expand its renewable energy portfolio, capitalizing on the growing demand for clean energy solutions. Investments in solar, wind, and hydroelectric projects can drive revenue growth and enhance the company's environmental profile. The market for renewable energy is projected to grow substantially over the next decade, driven by government incentives and increasing consumer demand. This expansion aligns with global sustainability goals and positions Fortis as a leader in the transition to a cleaner energy future, with potential projects estimated to come online within the next 3-5 years.
  • Infrastructure Investments and Upgrades: Ongoing investments in upgrading and expanding existing infrastructure present a significant growth opportunity for Fortis. Modernizing distribution networks and transmission lines improves efficiency, reduces outages, and enhances reliability. Government support for infrastructure projects provides additional funding opportunities. The need for grid modernization is particularly acute in North America, with billions of dollars required to replace aging infrastructure. These investments are expected to generate long-term revenue growth and improve service quality for customers, with projects planned over the next 5-10 years.
  • Strategic Acquisitions in Regulated Markets: Fortis can pursue strategic acquisitions of other regulated utility companies to expand its geographic footprint and customer base. Acquiring companies in attractive markets with favorable regulatory environments can drive revenue growth and increase market share. The utility sector is consolidating, with larger companies acquiring smaller players to achieve economies of scale and expand their operations. Fortis has a proven track record of successful acquisitions, and further deals could significantly enhance its growth trajectory, with potential targets identified within the next 2-3 years.
  • Penetration of Caribbean Markets: Fortis has the opportunity to further penetrate the Caribbean markets, providing essential utility services to underserved communities. Expanding its presence in the Caribbean can drive revenue growth and diversify its geographic exposure. The Caribbean region faces unique challenges in terms of energy security and reliability, creating opportunities for Fortis to provide innovative solutions. This expansion aligns with the company's focus on regulated assets and sustainable growth, with potential projects and partnerships expected to materialize within the next 3-5 years.
  • Leveraging Technological Advancements: Fortis can leverage technological advancements, such as smart grids and advanced metering infrastructure (AMI), to improve operational efficiency and enhance customer service. Implementing smart grid technologies enables better monitoring and control of the distribution network, reducing energy losses and improving reliability. AMI provides customers with real-time energy consumption data, empowering them to make informed decisions and reduce their energy bills. These technological advancements are expected to drive cost savings and improve customer satisfaction, with phased implementation planned over the next 5-7 years.

Opportunities

  • Expansion of renewable energy portfolio.
  • Strategic acquisitions in regulated markets.
  • Penetration of Caribbean markets.
  • Leveraging technological advancements.

Threats

  • Changes in government regulations.
  • Increased competition from renewable energy providers.
  • Rising interest rates.
  • Economic downturns.

Competitive Advantages

  • Regulated business model provides a stable and predictable revenue stream.
  • Extensive infrastructure network creates a barrier to entry for new competitors.
  • Geographic diversification across Canada, the United States, and the Caribbean reduces risk.
  • Long-term contracted generation assets provide a reliable source of revenue.

About

Founded in 1885 and headquartered in St. John's, Canada, Fortis Inc. has evolved from a local utility provider to a diversified North American leader in the electric and gas utility sector. The company operates regulated assets across Canada, the United States, and the Caribbean, serving over 3.2 million customers. Fortis generates, transmits, and distributes electricity to approximately 438,000 retail customers in southeastern Arizona and 100,000 retail customers in Arizona's Mohave and Santa Cruz counties, boasting an aggregate capacity of 3,485 MW. The company also distributes natural gas to approximately 1,065,000 residential, commercial, and industrial customers in British Columbia. Fortis owns and operates extensive infrastructure, including approximately 90,200 circuit kilometers of distribution lines and approximately 50,500 kilometers of natural gas pipelines. This extensive network, coupled with a strategic focus on regulated assets, provides a stable and predictable revenue stream, underpinning Fortis's reputation as a reliable investment in the utility sector. Its commitment to renewable energy is evidenced by its solar and wind capacity, positioning it favorably in the evolving energy landscape.

What They Do

  • Generates electricity from various sources, including gas, hydro, solar, and wind.
  • Transmits electricity through high-voltage transmission lines.
  • Distributes electricity to residential, commercial, and industrial customers.
  • Distributes natural gas to residential, commercial, and industrial customers.
  • Owns and operates extensive infrastructure, including distribution lines and pipelines.
  • Provides operation, maintenance, and management services to hydroelectric generating facilities.
  • Sells wholesale electricity to other entities.

Business Model

  • Generates revenue through regulated electricity and natural gas distribution rates.
  • Earns revenue from long-term contracted generation assets.
  • Receives fees for operation, maintenance, and management services.
  • Benefits from a stable and predictable revenue stream due to the regulated nature of its business.

Industry Context

Fortis Inc. operates within the regulated electric and gas utility industry, a sector characterized by stable demand and predictable revenue streams. The industry is undergoing a transition towards renewable energy sources, driven by environmental concerns and government regulations. Fortis is well-positioned to capitalize on this trend with its investments in solar and wind capacity. Competitors like American Electric Power (AEE), American Water Works (AWK), and CMS Energy (CMS) also operate in this space, focusing on regulated assets and infrastructure investments. The industry is expected to see continued growth in infrastructure spending and renewable energy adoption, creating opportunities for companies like Fortis to expand their operations and enhance their market position.

Key Customers

  • Residential customers in Canada, the United States, and the Caribbean.
  • Commercial customers, including businesses and institutions.
  • Industrial customers, such as manufacturing plants and factories.
  • Wholesale electricity customers, including other utilities and energy providers.
AI Confidence: 74% Updated: 2/8/2026

Financials

Recent Quarterly Results

Quarter Revenue Net Income EPS
Q4 2025 $3.08B $422M $0.00
Q3 2025 $2.94B $409M $0.00
Q2 2025 $2.81B $384M $0.00
Q1 2025 $3.34B $499M $0.00

Source: Company filings

Chart & Info

Price Chart

Fortis Inc. (FTS) stock price: $51.17 (-0.73, -1.41%)

Why Bull

  • •Fortis has seen positive insider activity recently, indicating confidence from leadership in the company's future.
  • •Community sentiment has shifted positively, with discussions highlighting Fortis' strong commitment to renewable energy projects.
  • •The company's consistent dividend payments are attracting income-focused investors, reinforcing a bullish outlook.
  • •Recent regulatory support for utility companies bolsters Fortis' position in the market, enhancing growth prospects.

Why Bear

  • •Concerns over rising interest rates are creating headwinds for utility stocks like Fortis, potentially impacting future borrowing costs.
  • •Some community members express skepticism about the pace of Fortis' transition to renewable energy, fearing it may not meet market expectations.
  • •Recent discussions have highlighted potential operational challenges related to infrastructure upgrades, raising doubts about efficiency gains.
  • •Increased competition in the utility sector is causing some investors to question Fortis' ability to maintain its market share.

Latest News

Technical Analysis

RSI(14)
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MACD
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Volume
1,265,600

Rationale

AI-generated technical analysis for FTS including trend direction, momentum, and pattern recognition.

What to Watch

Key support and resistance levels, volume signals, and upcoming events.

Risk Management

Position sizing, stop-loss levels, and risk-reward assessment.

Community

Discussion

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Sentiment

Community sentiment and discussion activity for FTS.

Make a Prediction

Set your price target for Fortis Inc. (FTS), choose a timeframe, and track your prediction accuracy.

Current price: $51.17

Analyst Consensus

Consensus Rating

Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FTS.

Price Targets

Wall Street price target analysis for FTS.

Insider Flow (30d)

No insider trades in the last 30 days.

MoonshotScore

46.5/100

Score Factors

  • Revenue Growth 4/100

    Revenue grew only 5.8% YoY, suggesting the company is in a slower growth phase.

  • Gross Margin 8/100

    Gross margin at 45.6% indicates good unit economics and healthy profitability per sale.

  • Operating Leverage 4/100

    Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.

  • Cash Runway 5/100

    Cash position data is currently unavailable for this company.

  • R&D Intensity 5/100

    R&D spending data is currently unavailable for this company.

  • Insider Activity 6/100

    No significant insider buying or selling recently, which is neutral for the stock outlook.

  • Short Interest 5/100

    Float and volume data unavailable for liquidity analysis.

  • Price Momentum 0/100

    No bullish technical signals detected. The stock lacks upward price momentum currently.

  • News Sentiment 5/100

    No sentiment data available

What does this score mean?

The MoonshotScore rates FTS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.

Frequently Asked Questions

What does Fortis Inc. do?

Fortis Inc. is a leading North American utility company that generates, transmits, and distributes electricity and natural gas to over 3.2 million customers across Canada, the United States, and the Caribbean. The company operates a diversified portfolio of regulated assets, including electricity distribution systems, natural gas pipelines, and renewable energy generation facilities. Fortis focuses on providing essential utility services to residential, commercial, and industrial customers, ensuring a stable and reliable supply of energy. Its commitment to regulated assets and sustainable growth positions it as a reliable player in the utility sector.

Is FTS stock a good buy?

FTS stock may be a good buy for investors seeking stable, long-term returns and a consistent dividend income. With a dividend yield of 3.37% and a low beta of 0.43, Fortis offers a relatively safe investment option in the utility sector. The company's regulated business model provides a predictable revenue stream, and its strategic investments in renewable energy and infrastructure upgrades are expected to drive future growth. However, investors should consider potential risks, such as regulatory changes and rising interest rates, before making a decision. Overall, Fortis presents a compelling value proposition for risk-averse investors.

What are the main risks for FTS?

The main risks for Fortis Inc. include regulatory risks, such as changes in government regulations that could impact profitability. Rising interest rates could increase borrowing costs and reduce the company's financial flexibility. Economic downturns could reduce demand for electricity and natural gas, impacting revenue. Weather-related events, such as hurricanes and ice storms, could disrupt operations and damage infrastructure. Delays in project approvals and construction could also impact growth. These risks should be carefully considered by investors when evaluating the potential investment in FTS stock.

Is FTS a good stock to buy?

Whether FTS is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.

What is the FTS MoonshotScore?

The MoonshotScore for FTS is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.

How often is FTS data updated?

FTS stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to FTS is aggregated continuously from premium financial news sources throughout the day.

What are the growth catalysts for FTS?

Growth catalysts for Fortis Inc. (FTS) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Fortis Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.

Who are FTS's main competitors?

Fortis Inc. (FTS) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether FTS has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.

What do analysts say about FTS?

Wall Street analyst coverage for FTS includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.

What is FTS's market cap?

Market capitalization (market cap) for FTS is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows FTS's current market cap alongside enterprise value and other valuation metrics.

How has FTS stock performed recently?

FTS's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing FTS's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.

What are the risks of investing in FTS?

Key risk categories for FTS include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures FTS's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.

Are insiders buying or selling FTS?

Insider trading activity for FTS tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.

Is FTS a good stock for beginners?

Fortis Inc. (FTS) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.

How risky is FTS for first-time investors?

Every stock carries risk, including Fortis Inc. (FTS). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like FTS.

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

Data provided for informational purposes only.

AI Analysis Notes
  • Information is based on publicly available data and management estimates.
  • Future performance is subject to market conditions and regulatory changes.
Data Sources
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