Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Fortis (FTS) Sparks the Grid: Expanded Capital Plans, Regulatory Shifts & New Demand Drivers- What’s the Impact, Outlook & its 5 Key Catalysts !
Fortis delivered stable Q3 2024 results consistent with its low-risk utility strategy, with adjusted EPS growing $0.01 YoY to $0.85, driven by rate base expansion and favorable adjustments in Arizona. YTD EPS rose $0.08 to $2.45, reflecting strong contributions from UNS Energy’s wind facility and Alberta rate base growth, though revenue of $2.00 billion missed expectations by $124.46 million due to inflation, elevated financing costs, and regulatory timing. Capital expenditures of $3.6 billion remain on track for FY24’s $5.2 billion target, while an updated $26 billion five-year capital plan supports a 6.5% CAGR in rate base growth. Strategic investments, including $400 million for the Eagle Mountain pipeline and long-term MISO projects, provide visibility but introduce timing and execution risks. Tailwinds include Arizona’s industrial demand growth, while headwinds such as financing costs, regulatory uncertainties, and FERC’s MISO ROE reduction temper momentum. Dividend reliability remains a key strength, with 4%-6% annual growth guidance extended through 2029, marking 51 years of consecutive increases. Near-term catalysts include clarity on Arizona regulatory processes and progress on capital initiatives. Can Fortis effectively manage execution risks and regulatory complexities to capitalize on its capital plans and sustain its long-term growth trajectory?
