Monday, July 28, 2008

Fortis Inc 2

Most analysts on the internet seem to have a buy rating on this stock (TSX-FTS). Some have recently switched to a buy from hold because of the recent pull back of the stock price. There has also been some insider buying for this stock. There is a fair range in the expected Earnings per Share (EPS) for this calendar year, ranging from the low $1.40 to $1.60. The quarterly EPS for March 31, 2008 is $.55 compared to the one of year ago of $.35. This is an increase of 57%.

This is a good stock, which for the last 10 years has consistently raised their dividends. However, note that prior to 10 years ago, they had some difficulties and did low the dividends. Their dividends have been rised an average of 6.4% yearly over the last 10 years and 10.8% over this last 5 years. Their current dividend rise is 22% from $.82 a share to $1.00 a share. The revenue for the quarter ending March 31, 2008, at $1,146M is higher than the $483M of a year ago by 137%.

The current and trailing P/E ratios are 17.3% and 20%, which is lower than the 5 year averages, which are 19% and 20.3%. For the quarterly ending March 31, 2008, both the Operational Cash Flow and the Operational Profit margin are up. The Accrual Ratio has greatly improved for March 31, 2008 quarterly report to 1.8%. These are items that I found negative on Friday for this stock in connection with the 5 years ending December 31, 2007. The other negative, which was the high debt level, is about the same.

By and large, this is a good stock, with a nice increasing dividend and it is selling at a reasonable price. It is also a relatively low risk stock. It is a good stock to buy if you are interested in low risk dividend paying stocks.

This company provides gas and electricity to customers across Canada, through regulated holdings that include a natural gas utility in British Columbia, and electric utilities in 5 provinces in Canada, and 3 Caribbean countries. It owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns and operates hotels in eight Canadian provinces as well as commercial real estate in Atlantic Canada. It had recently bought Teresen, a BC gas utility. Its web site is See my spreadsheet on this company at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on web site.

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