HYDRO ONE LTD (H.CA) Fundamental Analysis & Valuation
TSX:H • CA4488112083
Current stock price
58.28 CAD
+0.17 (+0.29%)
Last:
This H.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- Each year in the past 5 years H had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.38%, H belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- With an excellent Return On Equity value of 10.59%, H belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 5.34%, H belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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 Rank | Sector 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%
1.3 Margins
- H has a better Profit Margin (14.81%) than 94.44% of its industry peers.
- H's Profit Margin has declined in the last couple of years.
- The Operating Margin of H (24.75%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of H has grown nicely.
- With a Gross Margin value of 50.38%, H perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- 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 | 24.75% | ||
| 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%
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.
- 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 about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.39, we must say that H is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.39, H belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.44 is on the high side and indicates that H has dependencies on debt financing.
- H has a Debt to Equity ratio of 1.44. This is comparable to the rest of the industry: H outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.82
WACC6.47%
2.3 Liquidity
- H has a Current Ratio of 0.61. 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 Current ratio (0.61) which is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.6 |
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.
- The Earnings Per Share has been growing by 8.11% on average over the past years. This is quite good.
- Looking at the last year, H shows a small growth in Revenue. The Revenue has grown by 6.57% in the last year.
- Measured over the past years, H shows a small growth in Revenue. The Revenue has been growing by 4.40% on average per year.
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
- Based on estimates for the next years, H will show a small growth in Earnings Per Share. The EPS will grow by 7.81% on average per year.
- Based on estimates for the next years, H will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y3.83%
EPS Next 2Y4.01%
EPS Next 3Y2.94%
EPS Next 5Y7.81%
Revenue Next Year4.64%
Revenue Next 2Y3.71%
Revenue Next 3Y3.2%
Revenue Next 5Y4.45%
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 stable.
- 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.
4. H.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.13, which means the current valuation is very expensive for H.
- Based on the Price/Earnings ratio, H is valued more expensive than 94.44% of the companies in the same industry.
- When comparing the Price/Earnings ratio of H to the average of the S&P500 Index (27.42), we can say H is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.17 indicates a quite expensive valuation of H.
- 94.44% of the companies in the same industry are cheaper than H, based on the Price/Forward Earnings ratio.
- H's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 25.17 |
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 | 16.67 |
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.
- H has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.82
PEG (5Y)3.22
EPS Next 2Y4.01%
EPS Next 3Y2.94%
5. H.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.29%, H has a reasonable but not impressive dividend return.
- With a Dividend Yield of 2.29, H pays less dividend than the industry average, which is at 3.70. 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- The dividend of H has a limited annual growth rate of 4.94%.
- H has paid a dividend for at least 10 years, which is 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 Years8
Div Non Decr Years8
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 more than its dividend. This makes the dividend growth sustainable.
DP58.85%
EPS Next 2Y4.01%
EPS Next 3Y2.94%
H.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:H (4/24/2026, 7:00:00 PM)
58.28
+0.17 (+0.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)05-13 2026-05-13
Inst Owners23.62%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap34.96B
Revenue(TTM)9.04B
Net Income(TTM)1.34B
Analysts52.63
Price Target57.27 (-1.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend1.31
Dividend Growth(5Y)4.94%
DP58.85%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-11 2026-03-11 (0.3331)
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)4.49%
PT rev (3m)6.55%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)0.58%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 25.17 | ||
| P/S | 3.87 | ||
| P/FCF | N/A | ||
| P/OCF | 12.97 | ||
| P/B | 2.76 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 16.67 |
EPS(TTM)2.23
EY3.83%
EPS(NY)2.32
Fwd EY3.97%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)4.49
OCFY7.71%
SpS15.07
BVpS21.09
TBVpS19.37
PEG (NY)6.82
PEG (5Y)3.22
Graham Number32.5281 (-44.19%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.39 |
F-Score5
WACC6.47%
ROIC/WACC0.82
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 Y3.83%
EPS Next 2Y4.01%
EPS Next 3Y2.94%
EPS Next 5Y7.81%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y5.13%
Revenue growth 5Y4.4%
Sales Q2Q%8.26%
Revenue Next Year4.64%
Revenue Next 2Y3.71%
Revenue Next 3Y3.2%
Revenue Next 5Y4.45%
EBIT growth 1Y13.78%
EBIT growth 3Y6.15%
EBIT growth 5Y8.59%
EBIT Next Year58.12%
EBIT Next 3Y19.81%
EBIT Next 5Y16.02%
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.
Can you provide the profitability details for HYDRO ONE LTD?
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 26.13 and the Price/Book (PB) ratio is 2.76.
Can you provide the expected EPS growth for H stock?
The Earnings per Share (EPS) of HYDRO ONE LTD (H.CA) is expected to grow by 3.83% in the next year.