HYDRO ONE LTD (H.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:H - CA4488112083 - Common Stock
52.46 CAD
-0.48 (-0.91%)
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. H scores excellent on profitability, but there are concerns on its financial health. H is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
H had positive earnings in the past year.
H had a positive operating cash flow in the past year.
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.
1.2 Ratios
H's Return On Assets of 3.37% is amongst the best of the industry. H outperforms 94.44% of its industry peers.
The Return On Equity of H (10.35%) is better than 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.29%, H belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for H 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 Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 14.73%, H belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Profit Margin of H has grown nicely.
H has a Operating Margin (24.56%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of H has grown nicely.
H has a Gross Margin (51.97%) 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 | 24.56% | ||
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), H 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 a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that H is in the distress zone and has some risk of bankruptcy.
H has a Altman-Z score of 1.31. This is amongst the best in the industry. H outperforms 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.
With a Debt to Equity ratio value of 1.38, H perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.85
WACC6.23%
2.3 Liquidity
H has a Current Ratio of 0.44. 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 of 0.44. This is amonst the worse of the industry: H underperforms 94.44% of its industry peers.
H has a Quick Ratio of 0.44. This is a bad value and indicates that H is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.44, 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 | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.21% over the past year.
H shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.75% yearly.
The Revenue has been growing slightly by 5.98% in the past year.
The Revenue has been growing slightly by 5.54% on average over the past years.
EPS 1Y (TTM)14.21%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%12.9%
Revenue 1Y (TTM)5.98%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%4.88%
3.2 Future
H is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.45% yearly.
Based on estimates for the next years, H will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y13.07%
EPS Next 2Y8.56%
EPS Next 3Y7.49%
EPS Next 5Y7.45%
Revenue Next Year7.24%
Revenue Next 2Y5.2%
Revenue Next 3Y4.26%
Revenue Next 5Y4.72%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.18 indicates a rather expensive valuation of H.
94.44% of the companies in the same industry are cheaper than H, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.28. H is around the same levels.
A Price/Forward Earnings ratio of 23.06 indicates a rather expensive 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 23.06 |
4.2 Price Multiples
94.44% of the companies in the same industry are cheaper than H, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.6 |
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 excellent profitability rating of H may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)5.08
EPS Next 2Y8.56%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
H has a Yearly Dividend Yield of 2.49%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.49, H pays less dividend than the industry average, which is at 4.03. 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
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, but earnings are growing more, so the dividend growth is sustainable.
DP59.42%
EPS Next 2Y8.56%
EPS Next 3Y7.49%
TSX:H (12/9/2025, 7:00:00 PM)
52.46
-0.48 (-0.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners21.81%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap31.46B
Revenue(TTM)8.87B
Net Income(TTM)1.31B
Analysts52.22
Price Target53.12 (1.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend1.24
Dividend Growth(5Y)4.69%
DP59.42%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)2.81%
PT rev (3m)3.28%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)1.66%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 23.06 | ||
| P/S | 3.55 | ||
| P/FCF | N/A | ||
| P/OCF | 12.43 | ||
| P/B | 2.49 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 15.6 |
EPS(TTM)2.17
EY4.14%
EPS(NY)2.27
Fwd EY4.34%
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)4.22
OCFY8.04%
SpS14.79
BVpS21.03
TBVpS19.31
PEG (NY)1.85
PEG (5Y)5.08
Graham Number32.04
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.31 |
F-Score6
WACC6.23%
ROIC/WACC0.85
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)14.21%
EPS 3Y6.23%
EPS 5Y4.75%
EPS Q2Q%12.9%
EPS Next Y13.07%
EPS Next 2Y8.56%
EPS Next 3Y7.49%
EPS Next 5Y7.45%
Revenue 1Y (TTM)5.98%
Revenue growth 3Y5.5%
Revenue growth 5Y5.54%
Sales Q2Q%4.88%
Revenue Next Year7.24%
Revenue Next 2Y5.2%
Revenue Next 3Y4.26%
Revenue Next 5Y4.72%
EBIT growth 1Y12.62%
EBIT growth 3Y6.86%
EBIT growth 5Y8.47%
EBIT Next Year67.66%
EBIT Next 3Y23.25%
EBIT Next 5Y16.5%
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 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 8 / 10.
Can you provide the PE and PB ratios for H stock?
The Price/Earnings (PE) ratio for HYDRO ONE LTD (H.CA) is 24.18 and the Price/Book (PB) ratio is 2.49.
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.