Fortis (TSX:FTS.PR.K.PFD) Gross Margin % : 68.84% (As of Dec. 2023)

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What is Fortis Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fortis's Gross Profit for the three months ended in Dec. 2023 was C$1,986.00 Mil. Fortis's Revenue for the three months ended in Dec. 2023 was C$2,885.00 Mil. Therefore, Fortis's Gross Margin % for the quarter that ended in Dec. 2023 was 68.84%.

Warning Sign:

Fortis Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.

The historical rank and industry rank for Fortis's Gross Margin % or its related term are showing as below:

TSX:FTS.PR.K.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 59.32 Med: 68.02 Max: 71.56
Current: 67.26

During the past 13 years, the highest Gross Margin % of Fortis was 71.56%. The lowest was 59.32%. And the median was 68.02%.

TSX:FTS.PR.K.PFD's Gross Margin % is ranked better than
92.64% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs TSX:FTS.PR.K.PFD: 67.26

Fortis had a gross margin of 68.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fortis was -1.60% per year.

Fortis Gross Margin % Historical Data

The historical data trend for Fortis's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Fortis Gross Margin % Chart

Fortis Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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71.31

71.33

68.77

64.21

67.26

Fortis Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															59.97	60.47	69.66	71.57	68.84

Competitive Comparison of Fortis's Gross Margin %

For the Utilities - Regulated Electric subindustry, Fortis's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fortis's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Fortis's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Fortis's Gross Margin % falls into.

Fortis Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Fortis's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	7746	/	11517
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11517 - 3771)	/	11517
	=	67.26 %

Fortis's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1986	/	2885
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2885 - 899)	/	2885
	=	68.84 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Fortis (TSX:FTS.PR.K.PFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Fortis had a gross margin of 68.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Fortis Gross Margin % Related Terms

Thank you for viewing the detailed overview of Fortis's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Fortis (TSX:FTS.PR.K.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Fortis Inc (TSX:FTS.PR.K.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FORFF.PFD:USA FTRSF.PFD:USA FTS:USA 12F:Germany FTS.PR.M.PFD:Canada FTS.PR.J.PFD:Canada FTS.PR.I.PFD:Canada FTS.PR.H.PFD:Canada FTS.PR.G.PFD:Canada FTS.PR.F.PFD:Canada FTS:Canada

Address

5 Springdale Street, Suite 1100, Fortis Place, St. John’s, NL, CAN, A1E 0E4

Website

https://www.fortisinc.com

Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving more than 3.4 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Subsidiary ITC operates electric transmission in seven U.S. states, with more than 16,000 miles of high-voltage transmission lines in operation.

Fortis (TSX:FTS.PR.K.PFD) Headlines

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