HYDRO ONE LTD (H.CA) Stock Fundamental Analysis
Canada - TSX:H - CA4488112083 - Common Stock
53.8 CAD
-0.35 (-0.65%)
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. H is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year H was profitable.
In the past year H had a positive cash flow from operations.
In the past 5 years H has always been profitable.
H had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.32%, H belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
H has a better Return On Equity (10.14%) than 94.44% of its industry peers.
H has a better Return On Invested Capital (5.24%) 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 4.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.14% | ||
| ROIC | 5.24% |
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 14.34% 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.
H has a Operating Margin (24.14%) which is in line with its industry peers.
H's Operating Margin has improved in the last couple of years.
H has a Gross Margin (51.76%) which is in line with its industry peers.
In the last couple of years the Gross Margin of H has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.14% | ||
| PM (TTM) | 14.34% | ||
| GM | 51.76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), H is destroying value.
H has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for H has been increased compared to 5 years ago.
Compared to 1 year ago, H has a worse debt to assets ratio.
2.2 Solvency
H has an Altman-Z score of 1.34. This is a bad value and indicates that H is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.34, H belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
H has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
H's Debt to Equity ratio of 1.39 is in line compared to the rest of the industry. H outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.83
WACC6.32%
2.3 Liquidity
H has a Current Ratio of 0.36. This is a bad value and indicates that H is not financially healthy enough and could expect problems in meeting its short term obligations.
H has a worse Current ratio (0.36) than 94.44% of its industry peers.
A Quick Ratio of 0.36 indicates that H may have some problems paying its short term obligations.
With a Quick ratio value of 0.36, H is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, 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.
H shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
Measured over the past years, H shows a small growth in Revenue. The Revenue has been growing by 5.54% on average per year.
EPS 1Y (TTM)11.76%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%10.2%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%1.72%
3.2 Future
The Earnings Per Share is expected to grow by 6.76% on average over the next years.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y11.22%
EPS Next 2Y7.92%
EPS Next 3Y7.12%
EPS Next 5Y6.76%
Revenue Next Year7.08%
Revenue Next 2Y5.06%
Revenue Next 3Y4.09%
Revenue Next 5Y4.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 25.74, which means the current valuation is very expensive for H.
Based on the Price/Earnings ratio, H is valued expensively inside the industry as 94.44% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 25.51, H is valued at the same level.
The Price/Forward Earnings ratio is 23.93, which indicates a rather expensive current valuation of H.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, H is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 23.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, H is valued more expensive than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of H may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)5.41
EPS Next 2Y7.92%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
H has a Yearly Dividend Yield of 2.50%.
With a Dividend Yield of 2.50, H pays less dividend than the industry average, which is at 4.42. 94.44% of the companies listed in the same industry pay a better dividend than H!
Compared to an average S&P500 Dividend Yield of 2.44, H has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
60.91% of the earnings are spent on dividend by H. This is not a sustainable payout ratio.
H's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.91%
EPS Next 2Y7.92%
EPS Next 3Y7.12%
TSX:H (11/18/2025, 7:00:00 PM)
53.8
-0.35 (-0.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners22.02%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap32.27B
Revenue(TTM)8.76B
Net Income(TTM)1.26B
Analysts52.22
Price Target51.67 (-3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend1.24
Dividend Growth(5Y)4.69%
DP60.91%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.4%
Min EPS beat(2)4.19%
Max EPS beat(2)8.61%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)2.87%
Max EPS beat(4)8.61%
EPS beat(8)6
Avg EPS beat(8)2.66%
EPS beat(12)9
Avg EPS beat(12)2.39%
EPS beat(16)12
Avg EPS beat(16)2.41%
Revenue beat(2)0
Avg Revenue beat(2)-11.72%
Min Revenue beat(2)-19.33%
Max Revenue beat(2)-4.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-19.33%
Max Revenue beat(4)10.03%
Revenue beat(8)5
Avg Revenue beat(8)-0.53%
Revenue beat(12)6
Avg Revenue beat(12)-3.28%
Revenue beat(16)6
Avg Revenue beat(16)-4.37%
PT rev (1m)0.46%
PT rev (3m)1.67%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 23.93 | ||
| P/S | 3.68 | ||
| P/FCF | N/A | ||
| P/OCF | 13.22 | ||
| P/B | 2.6 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 16.02 |
EPS(TTM)2.09
EY3.88%
EPS(NY)2.25
Fwd EY4.18%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.07
OCFY7.56%
SpS14.61
BVpS20.66
TBVpS18.95
PEG (NY)2.29
PEG (5Y)5.41
Graham Number31.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.14% | ||
| ROCE | 6.32% | ||
| ROIC | 5.24% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 5.41% | ||
| OM | 24.14% | ||
| PM (TTM) | 14.34% | ||
| GM | 51.76% | ||
| 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-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 302.34% | ||
| Cap/Sales | 32.44% | ||
| Interest Coverage | 3.03 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.34 |
F-Score5
WACC6.32%
ROIC/WACC0.83
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)11.76%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%10.2%
EPS Next Y11.22%
EPS Next 2Y7.92%
EPS Next 3Y7.12%
EPS Next 5Y6.76%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%1.72%
Revenue Next Year7.08%
Revenue Next 2Y5.06%
Revenue Next 3Y4.09%
Revenue Next 5Y4.33%
EBIT growth 1Y12.2%
EBIT growth 3Y6.86%
EBIT growth 5Y8.47%
EBIT Next Year66.12%
EBIT Next 3Y22.99%
EBIT Next 5Y15.41%
FCF growth 1Y-2327.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.06%
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.
What is the valuation status of HYDRO ONE LTD (H.CA) stock?
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 7 / 10.
Can you provide the PE and PB ratios for H stock?
The Price/Earnings (PE) ratio for HYDRO ONE LTD (H.CA) is 25.74 and the Price/Book (PB) ratio is 2.6.
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.