HYDRO ONE LTD (H.CA) Stock Fundamental Analysis
Canada - TSX:H - CA4488112083 - Common Stock
53.89 CAD
+0.52 (+0.97%)
Taking everything into account, H scores 4 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 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.
H had a positive operating cash flow in the past year.
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
H's Return On Assets of 3.32% is amongst the best of the industry. H outperforms 94.44% of its industry peers.
H's Return On Equity of 10.14% is amongst the best of the industry. H outperforms 94.44% of its industry peers.
H has a better Return On Invested Capital (5.24%) than 100.00% of its industry peers.
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 4.02%.
| 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
Looking at the Profit Margin, with a value of 14.34%, H belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
H's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 24.14%, H perfoms like the industry average, 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's Gross Margin of 51.76% is in line compared to the rest of the industry. H outperforms 55.56% of 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.
Compared to 1 year ago, H has about the same amount of shares outstanding.
Compared to 5 years ago, H has more shares outstanding
H has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that H is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.34, H belongs to the best 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 has a Debt to Equity ratio (1.39) which is comparable to the rest of the industry.
| 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.
The Current ratio of H (0.36) is worse than 94.44% of its industry peers.
H has a Quick 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 Quick ratio (0.36) than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% over the past year.
The Earnings Per Share has been growing slightly by 4.75% on average over the past years.
H shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
The Revenue has been growing slightly by 5.54% on average over the past years.
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
Based on estimates for the next years, H will show a small growth in Earnings Per Share. The EPS will grow by 6.76% on average per year.
Based on estimates for the next years, H will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
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
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 25.78 indicates a quite expensive valuation of H.
94.44% of the companies in the same industry are cheaper than H, based on the Price/Earnings ratio.
H is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.97 indicates a rather expensive valuation of H.
Based on the Price/Forward Earnings ratio, H is valued 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 (34.59), we can say H is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.78 | ||
| Fwd PE | 23.97 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
H has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)5.42
EPS Next 2Y7.92%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, H has a reasonable but not impressive dividend return.
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!
H's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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.
The dividend of H is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.91%
EPS Next 2Y7.92%
EPS Next 3Y7.12%
TSX:H (11/14/2025, 7:00:00 PM)
53.89
+0.52 (+0.97%)
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 Cap32.32B
Revenue(TTM)8.76B
Net Income(TTM)1.26B
Analysts52.22
Price Target51.67 (-4.12%)
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 | 25.78 | ||
| Fwd PE | 23.97 | ||
| P/S | 3.69 | ||
| P/FCF | N/A | ||
| P/OCF | 13.24 | ||
| P/B | 2.61 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)2.09
EY3.88%
EPS(NY)2.25
Fwd EY4.17%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.07
OCFY7.55%
SpS14.61
BVpS20.66
TBVpS18.95
PEG (NY)2.3
PEG (5Y)5.42
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 25.78 and the Price/Book (PB) ratio is 2.61.
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.