Upside case
Bull case
$93+61.7%
FTS would need investors to value it at roughly 25x earnings — about 10x more generous than today's 16x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Fortis Inc. (FTS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
12
analysts
3 bullish · 1 bearish · 12 covering FTS
Strong Buy
0
Buy
3
Hold
8
Sell
1
Strong Sell
0
Consensus Target
$62
+7.9% vs today
Scenario Range
$44 – $93
Model bear to bull value window
Coverage
12
Published analyst ratings
Valuation Context
15.6x
Forward P/E · Market cap $29.1B
FTS price targets
Three scenarios for where FTS stock could go
Current
~$57
Confidence
64 / 100
Updated
May 1, 2026
Where we are now
Current · $57
Bear
$44
Base
$75
Bull
$93
Market caseClosest to today
Base case
$75+30.3%
At 20x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$44-23.9%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push FTS down roughly 24% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Fortis Inc.
FTS · NYSEUtilitiesRegulated ElectricDecember year-end
Fortis Inc. is a North American regulated electric and gas utility that generates, transmits, and distributes electricity and natural gas to millions of customers across Canada, the United States, and the Caribbean. It earns stable, regulated returns primarily from rate-regulated utility operations — with electricity distribution contributing roughly 60% of revenue and gas distribution about 30% — supplemented by contracted wholesale power sales. The company's key advantage is its geographically diversified portfolio of essential utility assets operating under predictable regulatory frameworks that provide stable cash flows and inflation-protected returns.
Market Cap
$29.1B
Revenue TTM
$11.3B
Net Income TTM
$1.7B
Net Margin
14.8%
FTS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
17%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 3 of 4Q2 2025
EPS
$0.70/$0.69
Revenue
$2.3B/$1.9B
Q3 2025
EPS
$0.55/$0.51
Revenue
$2.1B/$2.5B
Q4 2025
EPS
$0.59/$0.61
Revenue
$1.5B/$2.5B
Q1 2026
EPS
$0.65/$0.62
Revenue
$2.2B/$2.3B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.70/$0.69 | +1.4% | $2.3B/$1.9B | +22.1% |
| Q3 2025 | $0.55/$0.51 | +7.8% | $2.1B/$2.5B | -16.9% |
| Q4 2025 | $0.59/$0.61 | -3.3% | $1.5B/$2.5B | -40.4% |
| Q1 2026 | $0.65/$0.62 | +4.8% | $2.2B/$2.3B | -1.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$12.3B
+8.2% YoY
FY2
$12.8B
+4.7% YoY
EPS Outlook
FY1
$3.26
+18.5% YoY
FY2
$3.25
-0.4% YoY
Trailing FCF (TTM)-$2.0B
FCF Margin: -17.7%
Next Earnings
May 6, 2026
Expected EPS
$0.76
Expected Revenue
$2.6B
FTS beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
FTS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $11.9B
Product Mix
Latest annual revenue by segment or product family
Electric and Gas
97.3%
+6.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
55.0%
-3.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Electric and Gas is the largest disclosed segment at 97.3% of FY 2025 revenue, up 6.3% YoY.
UNITED STATES is the largest reported region at 55.0%, down 3.1% YoY.
FTS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Undervalued
Fair value est. $60 — implies +5.2% from today's price.
Upside to Fair Value
5.2%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
FTS
23.0x
vs
S&P 500
25.1x
9% discount
vs Utilities Trailing P/E
FTS
23.0x
vs
Utilities
20.1x
+14% premium
vs FTS 5Y Avg P/E
Today
23.0x
vs
5Y Average
14.9x
+55% premium
Forward PE
15.6x
S&P 500
19.1x
-18%
Utilities
17.5x
-11%
5Y Avg
—
—
Trailing PE
23.0x
S&P 500
25.1x
-9%
Utilities
20.1x
+14%
5Y Avg
14.9x
+55%
PEG Ratio
4.56x
S&P 500
1.72x
+166%
Utilities
1.69x
+170%
5Y Avg
—
—
EV/EBITDA
13.3x
S&P 500
15.2x
-13%
Utilities
11.4x
+17%
5Y Avg
11.0x
+21%
Price/FCF
—
S&P 500
21.1x
—
Utilities
15.1x
—
5Y Avg
—
—
Price/Sales
3.3x
S&P 500
3.1x
+4%
Utilities
2.2x
+51%
5Y Avg
2.0x
+64%
Dividend Yield
2.11%
S&P 500
1.87%
+13%
Utilities
3.06%
-31%
5Y Avg
3.30%
-36%
| Metric | FTS | S&P 500 | Utilities | 5Y Avg FTS |
|---|---|---|---|---|
| Forward PE | 15.6x | 19.1x-18% | 17.5x-11% | — |
| Trailing PE | 23.0x | 25.1x | 20.1x+14% | 14.9x+55% |
| PEG Ratio | 4.56x | 1.72x+166% | 1.69x+170% | — |
| EV/EBITDA | 13.3x | 15.2x-13% | 11.4x+17% | 11.0x+21% |
| Price/FCF | — | 21.1x | 15.1x | — |
| Price/Sales | 3.3x | 3.1x | 2.2x+51% | 2.0x+64% |
| Dividend Yield | 2.11% | 1.87% | 3.06% | 3.30% |
FTS trades above S&P 500 benchmarks on 1 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolFTS Financial Health
Verdict
Exceptional
FTS earns 28.6% operating margin on regulated earnings, 2.1% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$11.3B
Revenue Growth
TTM vs prior year
-1.4%
Operating Margin
Operating income divided by revenue
28.6%
Net Margin
Net income divided by revenue
14.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.75
Operating Margin
Operating income over revenue — primary regulated earnings signal
28.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
4.4%
ROA
Return on assets, trailing twelve months
2.2%
Cash & Equivalents
Liquid assets on the balance sheet
$367M
Net Debt
Total debt minus cash
$34.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
6.5%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.1%
Dividend
2.1%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$1.65
Payout Ratio
Share of earnings distributed as dividends
48.5%
Shares Outstanding
Current diluted share count
529M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageFTS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Debt Load
Fortis carries total debt of CAD 31.5 billion, with a net debt to EBITDA ratio of 6.0. Liabilities exceed cash and near‑term receivables by CAD 46.2 billion, surpassing the company’s market capitalization. This high leverage drives a low solvency score and raises the probability of default.
Medium
Cash Flow & Financing
Fortis’s free cash flow has been consistently negative, forcing the company to rely on external financing for its capital programs. This ongoing cash burn increases financial risk and could constrain future dividend growth.
Medium
Valuation Concerns
Fortis trades at a P/E of 23.6x, above the industry average of 22.1x and peer average of 19.3x. The premium suggests the stock may be overvalued, potentially limiting upside for value investors.
Medium
Regulatory & Operational Challenges
Regulatory lag, especially in rate‑base adjustments for subsidiaries like UNS Energy, can delay revenue recognition. Rising operational costs and lower wholesale sales margins further threaten earnings stability.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why FTS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Capital Expenditure & Rate Base Growth
Fortis plans $26 billion in capital expenditures for 2025‑2029 and $28.8 billion for 2026‑2030, driving its rate base from $38.8 billion in 2024 to $53 billion by 2029—a compound annual growth rate of 6.5%. This expansion underpins future cash flows and supports long‑term earnings growth.
Consistent Dividend Growth & Yield
The company has increased dividends for 51‑52 consecutive years and guides 4‑6% annual dividend growth through 2029‑2030. With a current dividend yield of 3.28%, Fortis offers attractive income for yield‑focused investors.
Diversified, Regulated Utility Portfolio
Fortis operates 99% regulated utilities across North America and the Caribbean, serving approximately 3.5 million customers. The regulated nature of its assets mitigates market‑fluctuation risks and provides stable revenue streams.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
FTS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$57.44
52W Range Position
90%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$45.87
+25.2% from the low
52-Week High
$58.78
-2.3% from the high
1 Month
+1.45%
3 Month
+4.46%
YTD
+10.7%
1 Year
+17.9%
3Y CAGR
+8.1%
5Y CAGR
+5.3%
10Y CAGR
+6.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
FTS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.6x
vs 20.6x median
-24% below peer median
Revenue Growth
+8.2%
vs +6.3% median
+29% above peer median
Net Margin
14.8%
vs 14.2% median
+4% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
FTS FTS Fortis Inc. | $29.1B | 15.6x | +8.2% | 14.8% | Hold | +7.9% |
ATO ATO Atmos Energy Corporation | $31.0B | 22.5x | +7.6% | 25.7% | Hold | -4.4% |
WEC WEC WEC Energy Group, Inc. | $37.5B | 20.6x | +6.3% | 16.2% | Hold | +6.6% |
ES ES Eversource Energy | $25.9B | 14.6x | +2.4% | 10.2% | Hold | +7.4% |
CMS CMS CMS Energy Corporation | $23.1B | 19.3x | +5.2% | 12.5% | Buy | +8.1% |
NI NI NiSource Inc. | $23.0B | 23.4x | +8.5% | 14.2% | Buy | +3.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FTS Dividend and Capital Return
FTS returns 2.1% total yield, led by a 2.11% dividend, raised 9 consecutive years.
Dividend SustainableFCF Unknown
Total Shareholder Yield
2.1%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
2.11%
Payout Ratio
48.5%
How FTS Splits Its Return
Div 2.11%
Dividend 2.11%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.65
Growth Streak
Consecutive years of dividend increases
9Y
3Y Div CAGR
2.0%
5Y Div CAGR
4.1%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
529M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.94 | — | — | — |
| 2025 | $1.77 | +1.7% | 0.0% | 3.2% |
| 2024 | $1.74 | +3.3% | 0.0% | 3.6% |
| 2023 | $1.69 | +1.1% | 0.0% | 3.5% |
| 2022 | $1.67 | +3.5% | 0.0% | 3.5% |
FAQ
7 questionsFTS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Fortis Inc. (FTS) stock a buy or sell in 2026?
Fortis Inc. (FTS) is rated Hold by Wall Street analysts as of 2026. Of 12 analysts covering the stock, 3 rate it Buy or Strong Buy, 8 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $62, implying +7.9% from the current price of $57. The bear case scenario is $44 and the bull case is $93.
02What is the FTS stock price target for 2026?
The Wall Street consensus price target for FTS is $62 based on 12 analyst estimates. The high-end target is $62 (+7.9% from today), and the low-end target is $62 (+7.9%). The base case model target is $75.
03Is Fortis Inc. (FTS) stock overvalued in 2026?
FTS trades at 15.6x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals slightly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Fortis Inc. (FTS) stock in 2026?
The primary risks for FTS in 2026 are: (1) Debt Load — Fortis carries total debt of CAD 31. (2) Cash Flow & Financing — Fortis’s free cash flow has been consistently negative, forcing the company to rely on external financing for its capital programs. (3) Valuation Concerns — Fortis trades at a P/E of 23. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Fortis Inc.'s revenue and earnings forecast?
Analyst consensus estimates FTS will report consensus revenue of $12.3B (+8.2% year-over-year) and EPS of $3.26 (+18.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $12.8B in revenue.
06When does Fortis Inc. (FTS) report its next earnings?
Fortis Inc. is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.76 and revenue of $2.6B. Over recent quarters, FTS has beaten EPS estimates 92% of the time.
07How much free cash flow does Fortis Inc. generate?
Fortis Inc. (FTS) had a free cash outflow of $2.0B in free cash flow over the trailing twelve months — a free cash flow margin of 17.7%. FTS returns capital to shareholders through dividends (2.1% yield) and share repurchases ($0 TTM).