Fortis FTS - Priced in at the moment

16 февр. 2022 г.

I have a position in FTS which I will be selling.

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Fortis released their annual earnings report:

fortisinc.com/docs/default-source/finance-regulatory-reports/annual-reports/q4-2021-pr-mda-and-fs-for-website.pdf?sfvrsn=3e547598_2

Fortis is an electric and gas provider, diversified in the North American market as well as Caribbean countries.

I would highlight that this is one of those boring slow/long type of holdings, Fortis would not make you insane returns quickly, but I think it is a defensive position in a long term portfolio, I own a very small position, for the purpose of being able to put more money into it should the price become more appealing later.

They are diversified by region, and are on plan to reduce carbon emissions by 75% by 2035 and move into responsible energy production. Fortis is also a dividend stock and they sustained 45 years of increasing dividend payments to shareholders.

I wont make a long post here, I just wanted to pencil out my personal price targets (Note for my self mostly)

EPS (TTM) 2.61
Analyst expected growth rate 5.06% (which is not attractive)
Average PE ratio over 5 years 18.8

Anticipated EPS in 5 years 3.34

= $ 62.79

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Based on a 15% return each year, Fortis be attractive today at $32 (IMO).