HYDRO ONE LTD (H.CA) Stock Fundamental Analysis

TSX:H • CA4488112083

56.47 CAD
+0.49 (+0.88%)
Last: Feb 13, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, H scores 3 out of 10 in our fundamental rating. 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 valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

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.
  • Of the past 5 years H 4 years were profitable.
  • H had a positive operating cash flow in 4 of the past 5 years.
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 0 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.37%, H belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
  • H has a Return On Equity of 10.35%. This is amongst the best in the industry. H outperforms 94.44% of its industry peers.
  • With an excellent Return On Invested Capital value of 5.29%, 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 5.28%. This is in line with the industry average of 4.03%.
  • The 3 year average ROIC (5.28%) for H is below the current ROIC(5.29%), indicating increased profibility in the last year.
Industry RankSector 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%
H.CA Yearly ROA, ROE, ROICH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

  • H has a better Profit Margin (14.73%) than 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 of 24.56%. This is comparable to the rest of the industry: H outperforms 55.56% of its industry peers.
  • In the last couple of years the Operating Margin of H has grown nicely.
  • H has a Gross Margin (51.97%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of H has remained more or less at the same level.
Industry RankSector 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%
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 0 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
H.CA Yearly Shares OutstandingH.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B

2.2 Solvency

  • H has an Altman-Z score of 1.37. This is a bad value and indicates that H is not financially healthy and even has some risk of bankruptcy.
  • H has a better Altman-Z score (1.37) than 100.00% of its industry peers.
  • A Debt/Equity ratio of 1.38 is on the high side and indicates that H has dependencies on debt financing.
  • H has a Debt to Equity ratio (1.38) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF N/A
Altman-Z 1.37
ROIC/WACC0.82
WACC6.47%
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 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.44 indicates that H may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.44, H is doing worse than 94.44% of the companies in the same industry.
  • A Quick Ratio of 0.44 indicates that H may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.44, H is doing worse than 94.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.44
Quick Ratio 0.44
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 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • H shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.10%, which is quite good.
  • The Earnings Per Share has been growing by 8.03% on average over the past years. This is quite good.
EPS 1Y (TTM)15.1%
EPS 3Y8.28%
EPS 5Y8.03%
EPS Q2Q%15.58%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.78%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.14% on average over the next years.
  • H is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y2.56%
EPS Next 2Y3.75%
EPS Next 3Y5.05%
EPS Next 5Y5.14%
Revenue Next Year3.2%
Revenue Next 2Y2.8%
Revenue Next 3Y4.1%
Revenue Next 5Y3.09%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.44, the valuation of H can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of H indicates a rather expensive valuation: H more expensive than 94.44% of the companies listed in the same industry.
  • H is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.68, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 24.79, the valuation of H can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, H is valued more expensive than 94.44% of the companies in the same industry.
  • H's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 25.44
Fwd PE 24.79
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 more expensive than 94.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.37
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 H does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of H may justify a higher PE ratio.
PEG (NY)9.95
PEG (5Y)3.17
EPS Next 2Y3.75%
EPS Next 3Y5.05%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.38%, H has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.38, H pays less dividend than the industry average, which is at 3.84. 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 1.84, H pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.38%

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.
  • As H did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.69%
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 0.2 0.4 0.6 0.8 1

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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP59.42%
EPS Next 2Y3.75%
EPS Next 3Y5.05%
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 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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HYDRO ONE LTD

TSX:H (2/13/2026, 7:00:00 PM)

56.47

+0.49 (+0.88%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-13
Earnings (Next)05-06
Inst Owners21.62%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap33.87B
Revenue(TTM)N/A
Net Income(TTM)1.31B
Analysts52.63
Price Target53.67 (-4.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.38%
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)-0.15%
PT rev (3m)3.87%
EPS NQ rev (1m)12.49%
EPS NQ rev (3m)13.43%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)3.87%
Revenue NQ rev (3m)3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 25.44
Fwd PE 24.79
P/S 3.82
P/FCF N/A
P/OCF 13.38
P/B 2.69
P/tB 2.92
EV/EBITDA 16.37
EPS(TTM)2.22
EY3.93%
EPS(NY)2.28
Fwd EY4.03%
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)4.22
OCFY7.47%
SpS14.79
BVpS21.03
TBVpS19.31
PEG (NY)9.95
PEG (5Y)3.17
Graham Number32.41
Profitability
Industry RankSector 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 RankSector 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 1.37
F-Score6
WACC6.47%
ROIC/WACC0.82
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)15.1%
EPS 3Y8.28%
EPS 5Y8.03%
EPS Q2Q%15.58%
EPS Next Y2.56%
EPS Next 2Y3.75%
EPS Next 3Y5.05%
EPS Next 5Y5.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.78%
Revenue Next Year3.2%
Revenue Next 2Y2.8%
Revenue Next 3Y4.1%
Revenue Next 5Y3.09%
EBIT growth 1Y12.62%
EBIT growth 3Y6.86%
EBIT growth 5Y8.47%
EBIT Next Year67.66%
EBIT Next 3Y23.26%
EBIT Next 5Y16.25%
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 3 / 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 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 2.56% in the next year.