Fortis Inc has roughly 395
M in cash with 2.91
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.82.
The firm shows a Beta (market volatility) of 0.7554, which means possible diversification benefits within a given portfolio. Let's try to break down what Fortis's beta means in this case. As returns on the market increase, Fortis returns are expected to increase less than the market. However, during the bear market, the loss on holding Fortis will be expected to be smaller as well. Although it is important to respect
Fortis Inc historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By reviewing
Fortis Inc technical indicators, you can presently evaluate if the expected return of 0.0032% will be sustainable into the future.
Fortis Inc right now shows a risk of 1.03%. Please confirm Fortis Inc
potential upside, as well as the
relationship between the accumulation distribution and
price action indicator to decide if Fortis Inc will be following its
price patterns.
Investing in Fortis, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Fortis along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Fortis' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Fortis's Liquidity
Fortis
financial leverage refers to using borrowed capital as a funding source to finance Fortis Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fortis financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Fortis' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Fortis' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Fortis's total debt and its cash.
Fortis Gross Profit
Fortis Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fortis previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Fortis Gross Profit growth over the last 10 years. Please check Fortis'
gross profit and other
fundamental indicators for more details.
Fortis Correlation with Peers
Investors in Fortis can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Fortis Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Fortis and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Fortis is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Fortis for more details
Detailed Perspective On Fortis
We consider Fortis very steady.
Fortis Inc secures Sharpe Ratio (or Efficiency) of 0.0031, which denotes the company had 0.0031% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Fortis Inc, which you can use to evaluate the future volatility of the firm. Please confirm Fortis Inc Downside Deviation of 1.16,
mean deviation of 0.8955, and Coefficient Of Variation of 1524.39 to check if the risk estimate we provide is consistent with the expected return of 0.0032%.
Fortis has 99 percent chance to finish above USD39 in March
Fortis jensen alpha is up to 0.0. Fortis Inc has relatively low volatility with skewness of 0.48 and kurtosis of 0.71. However, we advise all investors to independently investigate Fortis Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fortis' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fortis' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Fortis Inc
When is the right time to buy or sell Fortis Inc? Buying stocks such as Fortis isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Fortis nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fortis.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Fortis Inc. Please refer to our
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