HYDRO ONE LTD (H.CA) Fundamental Analysis & Valuation

TSX:H • CA4488112083

Current stock price

56.77 CAD
-0.4 (-0.7%)
Last:

This H.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. H.CA Profitability Analysis

1.1 Basic Checks

  • In the past year H was profitable.
  • In the past year H had a positive cash flow from operations.
  • H had positive earnings in each of the past 5 years.
  • In the past 5 years H always reported a positive cash flow from operatings.
H.CA Yearly Net Income VS EBIT VS OCF VS FCFH.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

1.2 Ratios

  • H has a Return On Assets of 3.38%. This is amongst the best in the industry. H outperforms 94.44% of its industry peers.
  • The Return On Equity of H (10.59%) is better than 94.44% of its industry peers.
  • H has a better Return On Invested Capital (5.34%) than 100.00% of its industry peers.
  • H had an Average Return On Invested Capital over the past 3 years of 5.22%. This is in line with the industry average of 4.07%.
  • The last Return On Invested Capital (5.34%) for H is above the 3 year average (5.22%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.38%
ROE 10.59%
ROIC 5.34%
ROA(3y)3.28%
ROA(5y)3.27%
ROE(3y)9.81%
ROE(5y)9.52%
ROIC(3y)5.22%
ROIC(5y)5.21%
H.CA Yearly ROA, ROE, ROICH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • H's Profit Margin of 14.81% 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 declined.
  • Looking at the Operating Margin, with a value of 24.75%, H is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • In the last couple of years the Operating Margin of H has grown nicely.
  • H has a Gross Margin (50.38%) which is comparable to the rest of the industry.
  • H's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24.75%
PM (TTM) 14.81%
GM 50.38%
OM growth 3Y0.97%
OM growth 5Y4.02%
PM growth 3Y3.15%
PM growth 5Y-9.41%
GM growth 3Y-1.13%
GM growth 5Y1.34%
H.CA Yearly Profit, Operating, Gross MarginsH.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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2

2. H.CA Health Analysis

2.1 Basic Checks

  • H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 about the same debt to assets ratio.
H.CA Yearly Shares OutstandingH.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
H.CA Yearly Total Debt VS Total AssetsH.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of 1.38, we must say that H is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of H (1.38) is better than 100.00% of its industry peers.
  • H has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
  • H has a Debt to Equity ratio (1.44) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF N/A
Altman-Z 1.38
ROIC/WACC0.84
WACC6.34%
H.CA Yearly LT Debt VS Equity VS FCFH.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.61 indicates that H may have some problems paying its short term obligations.
  • With a Current ratio value of 0.61, H perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • A Quick Ratio of 0.60 indicates that H may have some problems paying its short term obligations.
  • With an excellent Quick ratio value of 0.60, H belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.6
H.CA Yearly Current Assets VS Current LiabilitesH.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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4

3. H.CA Growth Analysis

3.1 Past

  • H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.54%, which is quite good.
  • H shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.11% yearly.
  • The Revenue has been growing slightly by 6.57% in the past year.
  • H shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
EPS 1Y (TTM)15.54%
EPS 3Y8.41%
EPS 5Y8.11%
EPS Q2Q%18.18%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y5.13%
Revenue growth 5Y4.4%
Sales Q2Q%8.26%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.13% on average over the next years.
  • Based on estimates for the next years, H will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y3.23%
EPS Next 2Y3.26%
EPS Next 3Y3.1%
EPS Next 5Y5.13%
Revenue Next Year3.93%
Revenue Next 2Y3.59%
Revenue Next 3Y3.13%
Revenue Next 5Y3.94%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
H.CA Yearly Revenue VS EstimatesH.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
H.CA Yearly EPS VS EstimatesH.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5 2 2.5

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1

4. H.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • H is valuated quite expensively with a Price/Earnings ratio of 25.46.
  • H's Price/Earnings ratio is rather expensive when compared to the industry. H is more expensive than 94.44% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. H is around the same levels.
  • The Price/Forward Earnings ratio is 24.66, 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.
  • H is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.46
Fwd PE 24.66
H.CA Price Earnings VS Forward Price EarningsH.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, H is valued expensively inside the industry as 94.44% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.47
H.CA Per share dataH.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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)7.87
PEG (5Y)3.14
EPS Next 2Y3.26%
EPS Next 3Y3.1%

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5

5. H.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.26%, H has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.26, H pays less dividend than the industry average, which is at 3.72. 94.44% of the companies listed in the same industry pay a better dividend than H!
  • H's Dividend Yield is comparable with the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 2.26%

5.2 History

  • The dividend of H has a limited annual growth rate of 4.94%.
  • 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)4.94%
Div Incr Years7
Div Non Decr Years7
H.CA Yearly Dividends per shareH.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 58.85% of the earnings are spent on dividend by H. This is a bit on the high side, but may be sustainable.
  • H's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP58.85%
EPS Next 2Y3.26%
EPS Next 3Y3.1%
H.CA Yearly Income VS Free CF VS DividendH.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B
H.CA Dividend Payout.H.CA Dividend Payout, showing the Payout Ratio.H.CA Dividend Payout.PayoutRetained Earnings

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H.CA Fundamentals: All Metrics, Ratios and Statistics

HYDRO ONE LTD

TSX:H (3/27/2026, 7:00:00 PM)

56.77

-0.4 (-0.7%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-13
Earnings (Next)05-06
Inst Owners22.45%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap34.05B
Revenue(TTM)9.04B
Net Income(TTM)1.34B
Analysts52.63
Price Target54.81 (-3.45%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.26%
Yearly Dividend1.31
Dividend Growth(5Y)4.94%
DP58.85%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-11
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.03%
Min EPS beat(2)4%
Max EPS beat(2)6.05%
EPS beat(4)4
Avg EPS beat(4)5.72%
Min EPS beat(4)4%
Max EPS beat(4)8.61%
EPS beat(8)6
Avg EPS beat(8)3.5%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)13
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)-10.4%
Min Revenue beat(2)-22.59%
Max Revenue beat(2)1.8%
Revenue beat(4)1
Avg Revenue beat(4)-11.06%
Min Revenue beat(4)-22.59%
Max Revenue beat(4)1.8%
Revenue beat(8)5
Avg Revenue beat(8)-2.67%
Revenue beat(12)6
Avg Revenue beat(12)-4.19%
Revenue beat(16)7
Avg Revenue beat(16)-4.86%
PT rev (1m)2.12%
PT rev (3m)3.18%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)1.73%
Valuation
Industry RankSector Rank
PE 25.46
Fwd PE 24.66
P/S 3.77
P/FCF N/A
P/OCF 12.63
P/B 2.69
P/tB 2.93
EV/EBITDA 16.47
EPS(TTM)2.23
EY3.93%
EPS(NY)2.3
Fwd EY4.06%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)4.49
OCFY7.91%
SpS15.07
BVpS21.09
TBVpS19.37
PEG (NY)7.87
PEG (5Y)3.14
Graham Number32.53
Profitability
Industry RankSector Rank
ROA 3.38%
ROE 10.59%
ROCE 6.2%
ROIC 5.34%
ROICexc 5.42%
ROICexgc 5.58%
OM 24.75%
PM (TTM) 14.81%
GM 50.38%
FCFM N/A
ROA(3y)3.28%
ROA(5y)3.27%
ROE(3y)9.81%
ROE(5y)9.52%
ROIC(3y)5.22%
ROIC(5y)5.21%
ROICexc(3y)5.29%
ROICexc(5y)5.3%
ROICexgc(3y)5.46%
ROICexgc(5y)5.47%
ROCE(3y)6.08%
ROCE(5y)6.17%
ROICexgc growth 3Y-1.47%
ROICexgc growth 5Y2.93%
ROICexc growth 3Y-1.29%
ROICexc growth 5Y3%
OM growth 3Y0.97%
OM growth 5Y4.02%
PM growth 3Y3.15%
PM growth 5Y-9.41%
GM growth 3Y-1.13%
GM growth 5Y1.34%
F-Score5
Asset Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 1.44
Debt/FCF N/A
Debt/EBITDA 5.68
Cap/Depr 315.74%
Cap/Sales 33.74%
Interest Coverage 3.09
Cash Conversion 84.11%
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.6
Altman-Z 1.38
F-Score5
WACC6.34%
ROIC/WACC0.84
Cap/Depr(3y)302.29%
Cap/Depr(5y)282.4%
Cap/Sales(3y)32.8%
Cap/Sales(5y)30.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.54%
EPS 3Y8.41%
EPS 5Y8.11%
EPS Q2Q%18.18%
EPS Next Y3.23%
EPS Next 2Y3.26%
EPS Next 3Y3.1%
EPS Next 5Y5.13%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y5.13%
Revenue growth 5Y4.4%
Sales Q2Q%8.26%
Revenue Next Year3.93%
Revenue Next 2Y3.59%
Revenue Next 3Y3.13%
Revenue Next 5Y3.94%
EBIT growth 1Y13.78%
EBIT growth 3Y6.15%
EBIT growth 5Y8.59%
EBIT Next Year56.54%
EBIT Next 3Y19.59%
EBIT Next 5Y17.65%
FCF growth 1Y-29.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.35%
OCF growth 3Y6.04%
OCF growth 5Y5.83%

HYDRO ONE LTD / H.CA Fundamental Analysis 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 7 / 10.


What is the financial health of HYDRO ONE LTD (H.CA) stock?

The financial health rating of HYDRO ONE LTD (H.CA) is 2 / 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 3.23% in the next year.