Fortis Return On Equity vs. Profit Margin

FTS Stock  USD 45.16  0.34  0.76%   
Based on Fortis' profitability indicators, Fortis' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Fortis' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.07314578
Current Value
0.088
Quarterly Volatility
0.01814998
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Fortis' Days Sales Outstanding is comparatively stable compared to the past year. Days Of Sales Outstanding is likely to gain to 61.45 in 2024, whereas Price To Sales Ratio is likely to drop 1.30 in 2024. At this time, Fortis' Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 2.45 in 2024, whereas Interest Income is likely to drop slightly above 72.2 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.6726
Way Down
Slightly volatile
Net Profit Margin0.07760.1366
Way Down
Slightly volatile
Operating Profit Margin0.180.2678
Way Down
Slightly volatile
Pretax Profit Margin0.10.1797
Way Down
Slightly volatile
Return On Assets0.02780.0239
Fairly Up
Pretty Stable
Return On Equity0.0880.0731
Fairly Up
Pretty Stable
For Fortis profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fortis to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fortis Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fortis's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fortis Inc over time as well as its relative position and ranking within its peers.
  

Fortis' Revenue Breakdown by Earning Segment

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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fortis. If investors know Fortis will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fortis listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.045
Dividend Share
2.36
Earnings Share
2.31
Revenue Per Share
23.225
Quarterly Revenue Growth
0.019
The market value of Fortis Inc is measured differently than its book value, which is the value of Fortis that is recorded on the company's balance sheet. Investors also form their own opinion of Fortis' value that differs from its market value or its book value, called intrinsic value, which is Fortis' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fortis' market value can be influenced by many factors that don't directly affect Fortis' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fortis' value and its price as these two are different measures arrived at by different means. Investors typically determine if Fortis is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fortis' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fortis Inc Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fortis's current stock value. Our valuation model uses many indicators to compare Fortis value to that of its competitors to determine the firm's financial worth.
Fortis Inc is rated below average in return on equity category among its peers. It is rated below average in profit margin category among its peers fabricating about  1.92  of Profit Margin per Return On Equity. At this time, Fortis' Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Fortis by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Fortis Profit Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Fortis

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0754
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Fortis

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.14 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Fortis Profit Margin Comparison

Fortis is currently under evaluation in profit margin category among its peers.

Fortis Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fortis, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fortis will eventually generate negative long term returns. The profitability progress is the general direction of Fortis' change in net profit over the period of time. It can combine multiple indicators of Fortis, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income653 M685.6 M
Operating Income3.1 B3.2 B
Income Before Tax2.1 B2.2 B
Total Other Income Expense Net-1 B-963.3 M
Net Income1.7 B1.8 B
Income Tax Expense360 M378 M
Net Income From Continuing Ops1.7 B1.8 B
Net Income Applicable To Common Shares1.5 B1.6 B
Interest Income76 M72.2 M
Net Interest Income-1.2 B-1.3 B
Change To Netincome378.4 M397.3 M
Net Income Per Share 3.23  3.40 
Income Quality 2.25  2.45 
Net Income Per E B T 0.76  0.58 

Fortis Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fortis. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fortis position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fortis' important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Fortis without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Target Risk ETFs Theme
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Additional Tools for Fortis Stock Analysis

When running Fortis' price analysis, check to measure Fortis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fortis is operating at the current time. Most of Fortis' value examination focuses on studying past and present price action to predict the probability of Fortis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fortis' price. Additionally, you may evaluate how the addition of Fortis to your portfolios can decrease your overall portfolio volatility.