FortisTSX:FTS -1.26%81 Return-on-Tangible-Equity is 21.44% as of Mar. 2026, which is 0% below its 10-year median of 21.54. GuruFocus rates TSX:FTS with a GF Score™ of 81/100 and a GF Value™ of C$64.51 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 498 Utilities - Regulated companies, Fortis ranks better than 72.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Fortis's annualized net income for the quarter that ended in Mar. 2026 was C$2,092 Mil. Fortis's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$9,759 Mil. Therefore, Fortis's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.44%.
The historical rank and industry rank for Fortis's Return-on-Tangible-Equity or its related term are showing as below:
TSX:FTS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.7 Med: 21.54 Max: 58.74
Current: 18.7
During the past 13 years, Fortis's highest Return-on-Tangible-Equity was 58.74%. The lowest was 18.70%. And the median was 21.54%.
TSX:FTS's Return-on-Tangible-Equity is ranked better than 72.29% of 498
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs TSX:FTS: 18.70
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Fortis Return-on-Tangible-Equity Related Terms
Fortis Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fortis's Return-on-Tangible-Equity 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.
TSX:FTS vs NEE, SO, DUK: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Electric subindustry, Fortis's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Fortis's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fortis's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.44% mean?
Fortis (TSX:FTS) has a Return-on-Tangible-Equity of 21.44% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fortis and its competitors. This is near median its historical median of 21.54. Over the past decade, Fortis' Return-on-Tangible-Equity has ranged from 18.70 to 58.74. According to the industry distribution chart, Fortis ranks #138 out of 498 companies in the Utilities - Regulated industry, placing it in the top 27.7%.
Is Fortis' Return-on-Tangible-Equity too high?
Fortis' current Return-on-Tangible-Equity of 21.44% is near median its 10-year median of 21.54. Over the past 10 years, this metric has ranged from a low of 18.70 to a high of 58.74. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. Fortis' value of 21.44% is 96.5% above this industry median. Based on the distribution chart, Fortis ranks #138 out of 498 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Fortis has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fortis' Return-on-Tangible-Equity compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Fortis ranks #138 out of 498 companies for Return-on-Tangible-Equity. This puts Fortis in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.91. Fortis' value of 21.44% is 96.5% above this benchmark. Historically, Fortis' own Return-on-Tangible-Equity has ranged from 18.70 to 58.74 over the past decade. While the company's 10-year median is 21.54 vs. the industry median of 10.91, Fortis has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fortis's current Return-on-Tangible-Equity of 21.44% is 96.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Fortis and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortis's current Return-on-Tangible-Equity is 21.44%, which is near median its own 10-year median of 21.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortis stock overvalued right now?
Based on GuruFocus' analysis, Fortis (TSX:FTS) is currently considered Modestly Overvalued. The stock's GF Value™ is C$64.51, compared to a current price of C$80.85 — trading 25.3% above its estimated fair value. The current Return-on-Tangible-Equity is 21.44%, which is near median its 10-year median of 21.54 and 96.5% above the Utilities - Regulated industry median of 10.91. Fortis' overall GF Score™ is 81/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Fortis (TSX:FTS), the current Return-on-Tangible-Equity is 21.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fortis (TSX:FTS) Overvalued in 2026?
Based on GuruFocus' analysis, Fortis stock appears to be overvalued.
The current stock price of C$80.85 is trading 25.3% above its estimated GF Value™ of C$64.51.
GuruFocus considers Fortis to be Modestly Overvalued.
Key valuation signals for TSX:FTS:
Return-on-Tangible-Equity: 21.44% (near median its 10-year median of 21.54)
GF Value™: C$64.51 vs. price of C$80.85 (25.3% above fair value)
Industry Position: 96.5% above the Utilities - Regulated median (#138 of 498)
No single metric tells the full story. See the TSX:FTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving 3.5 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Subsidiary ITC operates electric transmission in seven US states, with more than 16,000 miles of high-voltage transmission lines in operation.
81GF Score
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