FortisTSX:FTS +0.36%80 3-Year ROIIC % is 5.12 as of Dec. 2025, which is 29% above its 10-year median of 3.98. GuruFocus rates TSX:FTS with a GF Score™ of 80/100 and a GF Value™ of C$64.48 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 477 Utilities - Regulated companies, Fortis ranks better than 54.3% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Fortis's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 5.12%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Fortis's 3-Year ROIIC % or its related term are showing as below:
TSX:FTS's 3-Year ROIIC % is ranked better than 54.3% of 477
companies
in the Utilities - Regulated industry
Industry Median: 4.02
vs TSX:FTS: 5.12
Fortis (TSX:FTS) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Fortis 3-Year ROIIC % Related Terms
Fortis 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Fortis's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Utilities - Regulated Electric subindustry, Fortis's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Fortis's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Fortis's 3-Year ROIIC % falls into.
Fortis's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 2909.1852 (Dec. 2025) - 2300.778 (Dec. 2022) )
/
( 75915 (Dec. 2025) - 64030 (Dec. 2022) )
=
608.4072
/
11885
=
5.12%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Fortis (TSX:FTS) has a 3-Year ROIIC % of 5.12 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Fortis and its competitors. This is 29% above median its historical median of 3.98. Over the past decade, Fortis' 3-Year ROIIC % has ranged from 0.38 to 18.25. According to the industry distribution chart, Fortis ranks #218 out of 477 companies in the Utilities - Regulated industry, placing it in the top 45.7%.
Is Fortis' 3-Year ROIIC % too high?
Fortis' current 3-Year ROIIC % of 5.12 is 29% above median its 10-year median of 3.98. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 18.25. The Utilities - Regulated industry median 3-Year ROIIC % is 4.02. Fortis' value of 5.12 is 27.4% above this industry median. Based on the distribution chart, Fortis ranks #218 out of 477 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Fortis has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fortis' 3-Year ROIIC % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Fortis ranks #218 out of 477 companies for 3-Year ROIIC %. This puts Fortis in the upper half of its industry. The industry median 3-Year ROIIC % is 4.02. Fortis' value of 5.12 is 27.4% above this benchmark. Historically, Fortis' own 3-Year ROIIC % has ranged from 0.38 to 18.25 over the past decade. While the company's 10-year median is 3.98 vs. the industry median of 4.02, 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 3-Year ROIIC % for an Utilities - Regulated company?
The median 3-Year ROIIC % among Utilities - Regulated companies is 4.02, based on 477 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fortis's current 3-Year ROIIC % of 5.12 is 27.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Fortis and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 4.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortis's current 3-Year ROIIC % is 5.12, which is 29% above median its own 10-year median of 3.98. 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$64.48, compared to a current price of C$81.23 — trading 26% above its estimated fair value. The current 3-Year ROIIC % is 5.12, which is 29% above median its 10-year median of 3.98 and 27.4% above the Utilities - Regulated industry median of 4.02. Fortis' overall GF Score™ is 80/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Fortis (TSX:FTS), the current 3-Year ROIIC % is 5.12 as of Dec. 2025. 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$81.23 is trading 26% above its estimated GF Value™ of C$64.48.
GuruFocus considers Fortis to be Modestly Overvalued.
Key valuation signals for TSX:FTS:
3-Year ROIIC %: 5.12 (29% above median its 10-year median of 3.98)
GF Value™: C$64.48 vs. price of C$81.23 (26% above fair value)
Industry Position: 27.4% above the Utilities - Regulated median (#218 of 477)
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.
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