HYDRO ONE LTD (H.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:H - CA4488112083 - Common Stock
52.45 CAD
-0.31 (-0.59%)
We assign a fundamental rating of 4 out of 10 to H. H was compared to 18 industry peers in the Electric Utilities industry. While H has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, H is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year H was profitable.
- H had a positive operating cash flow in the past year.
- In the past 5 years H has always been profitable.
- In the past 5 years H always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of H (3.37%) is better than 94.44% of its industry peers.
- H has a better Return On Equity (10.35%) than 94.44% of its industry peers.
- H has a better Return On Invested Capital (5.29%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for H is in line with the industry average of 4.03%.
- The last Return On Invested Capital (5.29%) for H is above the 3 year average (5.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.35% | ||
| ROIC | 5.29% |
ROA(3y)3.26%
ROA(5y)3.76%
ROE(3y)9.38%
ROE(5y)10.76%
ROIC(3y)5.28%
ROIC(5y)5.06%
1.3 Margins
- H's Profit Margin of 14.73% is amongst the best of the industry. H outperforms 94.44% of its industry peers.
- In the last couple of years the Profit Margin of H has grown nicely.
- With a Operating Margin value of 24.56%, H perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- H's Operating Margin has improved in the last couple of years.
- H has a Gross Margin of 51.97%. This is comparable to the rest of the industry: H outperforms 55.56% of its industry peers.
- H's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.56% | ||
| PM (TTM) | 14.73% | ||
| GM | 51.97% |
OM growth 3Y1.29%
OM growth 5Y2.78%
PM growth 3Y0.67%
PM growth 5Y2.56%
GM growth 3Y0.46%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so H is destroying value.
- The number of shares outstanding for H remains at a similar level compared to 1 year ago.
- H has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, H has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.31, we must say that H is in the distress zone and has some risk of bankruptcy.
- H has a Altman-Z score of 1.31. This is amongst the best in the industry. H outperforms 100.00% of its industry peers.
- H has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
- H has a Debt to Equity ratio of 1.38. This is comparable to the rest of the industry: H outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.85
WACC6.26%
2.3 Liquidity
- A Current Ratio of 0.44 indicates that H may have some problems paying its short term obligations.
- With a Current ratio value of 0.44, H is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
- A Quick Ratio of 0.44 indicates that H may have some problems paying its short term obligations.
- H has a worse Quick ratio (0.44) than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
- H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.21%, which is quite good.
- Measured over the past 5 years, H shows a small growth in Earnings Per Share. The EPS has been growing by 4.75% on average per year.
- The Revenue has been growing slightly by 5.98% in the past year.
- The Revenue has been growing slightly by 5.54% on average over the past years.
EPS 1Y (TTM)14.21%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%12.9%
Revenue 1Y (TTM)5.98%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%4.88%
3.2 Future
- Based on estimates for the next years, H will show a small growth in Earnings Per Share. The EPS will grow by 6.51% on average per year.
- The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y13.07%
EPS Next 2Y8.68%
EPS Next 3Y7.53%
EPS Next 5Y6.51%
Revenue Next Year7.24%
Revenue Next 2Y5.2%
Revenue Next 3Y4.26%
Revenue Next 5Y4.22%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.17 indicates a rather expensive valuation of H.
- Based on the Price/Earnings ratio, H is valued more expensive than 94.44% of the companies in the same industry.
- H's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 23.01, H is valued on the expensive side.
- H's Price/Forward Earnings ratio is rather expensive when compared to the industry. H is more expensive than 94.44% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of H to the average of the S&P500 Index (24.31), we can say H is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of H indicates a rather expensive valuation: H more expensive than 94.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.6 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates H does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of H may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)5.08
EPS Next 2Y8.68%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.46%, H has a reasonable but not impressive dividend return.
- With a Dividend Yield of 2.46, H pays less dividend than the industry average, which is at 4.51. 94.44% of the companies listed in the same industry pay a better dividend than H!
- H's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
- The dividend of H has a limited annual growth rate of 4.69%.
- H has been paying a dividend for at least 10 years, so it has a reliable track record.
- H has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.69%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- H pays out 59.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of H is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.42%
EPS Next 2Y8.68%
EPS Next 3Y7.53%
TSX:H (1/15/2026, 7:00:00 PM)
52.45
-0.31 (-0.59%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-13 2025-11-13/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners21.62%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap31.46B
Revenue(TTM)8.87B
Net Income(TTM)1.31B
Analysts52.22
Price Target53.75 (2.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend1.24
Dividend Growth(5Y)4.69%
DP59.42%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.12%
Min EPS beat(2)4.19%
Max EPS beat(2)6.05%
EPS beat(4)4
Avg EPS beat(4)5.71%
Min EPS beat(4)3.99%
Max EPS beat(4)8.61%
EPS beat(8)6
Avg EPS beat(8)3%
EPS beat(12)9
Avg EPS beat(12)2.69%
EPS beat(16)12
Avg EPS beat(16)2.28%
Revenue beat(2)0
Avg Revenue beat(2)-20.96%
Min Revenue beat(2)-22.59%
Max Revenue beat(2)-19.33%
Revenue beat(4)1
Avg Revenue beat(4)-9%
Min Revenue beat(4)-22.59%
Max Revenue beat(4)10.03%
Revenue beat(8)5
Avg Revenue beat(8)-2.35%
Revenue beat(12)6
Avg Revenue beat(12)-3.85%
Revenue beat(16)6
Avg Revenue beat(16)-5.04%
PT rev (1m)1.18%
PT rev (3m)4.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 23.01 | ||
| P/S | 3.55 | ||
| P/FCF | N/A | ||
| P/OCF | 12.43 | ||
| P/B | 2.49 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 15.6 |
EPS(TTM)2.17
EY4.14%
EPS(NY)2.28
Fwd EY4.35%
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)4.22
OCFY8.05%
SpS14.79
BVpS21.03
TBVpS19.31
PEG (NY)1.85
PEG (5Y)5.08
Graham Number32.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.35% | ||
| ROCE | 6.3% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 5.52% | ||
| OM | 24.56% | ||
| PM (TTM) | 14.73% | ||
| GM | 51.97% | ||
| FCFM | N/A |
ROA(3y)3.26%
ROA(5y)3.76%
ROE(3y)9.38%
ROE(5y)10.76%
ROIC(3y)5.28%
ROIC(5y)5.06%
ROICexc(3y)5.36%
ROICexc(5y)5.15%
ROICexgc(3y)5.54%
ROICexgc(5y)5.32%
ROCE(3y)6.26%
ROCE(5y)6.02%
ROICexgc growth 3Y1.33%
ROICexgc growth 5Y2.9%
ROICexc growth 3Y1.4%
ROICexc growth 5Y2.89%
OM growth 3Y1.29%
OM growth 5Y2.78%
PM growth 3Y0.67%
PM growth 5Y2.56%
GM growth 3Y0.46%
GM growth 5Y-0.32%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.56 | ||
| Cap/Depr | 303.56% | ||
| Cap/Sales | 32.69% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 80.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.31 |
F-Score6
WACC6.26%
ROIC/WACC0.85
Cap/Depr(3y)280.72%
Cap/Depr(5y)266.35%
Cap/Sales(3y)30.49%
Cap/Sales(5y)29.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.21%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%12.9%
EPS Next Y13.07%
EPS Next 2Y8.68%
EPS Next 3Y7.53%
EPS Next 5Y6.51%
Revenue 1Y (TTM)5.98%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%4.88%
Revenue Next Year7.24%
Revenue Next 2Y5.2%
Revenue Next 3Y4.26%
Revenue Next 5Y4.22%
EBIT growth 1Y12.62%
EBIT growth 3Y6.86%
EBIT growth 5Y8.47%
EBIT Next Year67.66%
EBIT Next 3Y23.26%
EBIT Next 5Y15.1%
FCF growth 1Y-717.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.69%
OCF growth 3Y5.65%
OCF growth 5Y9.44%
HYDRO ONE LTD / H.CA FAQ
What is the ChartMill fundamental rating of HYDRO ONE LTD (H.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to H.CA.
Can you provide the valuation status for HYDRO ONE LTD?
ChartMill assigns a valuation rating of 1 / 10 to HYDRO ONE LTD (H.CA). This can be considered as Overvalued.
How profitable is HYDRO ONE LTD (H.CA) stock?
HYDRO ONE LTD (H.CA) has a profitability rating of 8 / 10.
What is the financial health of HYDRO ONE LTD (H.CA) stock?
The financial health rating of HYDRO ONE LTD (H.CA) is 1 / 10.
What is the earnings growth outlook for HYDRO ONE LTD?
The Earnings per Share (EPS) of HYDRO ONE LTD (H.CA) is expected to grow by 13.07% in the next year.