Executive Summary
Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 32.2% per year for the next 3 years
Snowflake Analysis
Acceptable track record second-rate dividend payer.
Similar Companies
Share Price & News
How has Hydro One's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: H is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: H's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
0.3%
H
0.7%
CA Electric Utilities
-0.5%
CA Market
1 Year Return
12.4%
H
-4.5%
CA Electric Utilities
1.6%
CA Market
Return vs Industry: H exceeded the Canadian Electric Utilities industry which returned -4.4% over the past year.
Return vs Market: H exceeded the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| H | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 0.7% | -0.5% |
| 30 Day | 2.7% | 1.8% | 2.9% |
| 90 Day | -2.0% | 0.3% | 12.2% |
| 1 Year | 16.6%12.4% | -1.2%-4.5% | 5.3%1.6% |
| 3 Year | 51.9%34.3% | 28.5%17.4% | 13.1%2.3% |
| 5 Year | 61.4%32.0% | 50.0%28.1% | 66.1%40.5% |
Long-Term Price Volatility Vs. Market
How volatile is Hydro One's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
How Many Hydro One Limited (TSE:H) Shares Do Institutions Own?1 month ago | Simply Wall St
How Does Hydro One Limited (TSE:H) Fare As A Dividend Stock?1 month ago | Simply Wall St
Are Hydro One Limited (TSE:H) Investors Paying Above The Intrinsic Value?Valuation
Is Hydro One undervalued compared to its fair value and its price relative to the market?
9.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: H (CA$29.44) is trading above our estimate of fair value (CA$25.92)
Significantly Below Fair Value: H is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: H is good value based on its PE Ratio (9.7x) compared to the XN Electric Utilities industry average (19.6x).
PE vs Market: H is good value based on its PE Ratio (9.7x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: H's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: H's PB Ratio (1.7x) is in line with the XN Electric Utilities industry average.
Next Steps
Future Growth
How is Hydro One forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-32.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: H's earnings are forecast to decline over the next 3 years (-32.2% per year).
Earnings vs Market: H's earnings are forecast to decline over the next 3 years (-32.2% per year).
High Growth Earnings: H's earnings are forecast to decline over the next 3 years.
Revenue vs Market: H's revenue (3.9% per year) is forecast to grow slower than the Canadian market (7.8% per year).
High Growth Revenue: H's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: H's Return on Equity is forecast to be low in 3 years time (8.7%).
Next Steps
Past Performance
How has Hydro One performed over the past 5 years?
5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: H has high quality earnings.
Growing Profit Margin: H became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: H's earnings have grown by 5.5% per year over the past 5 years.
Accelerating Growth: H has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: H has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (4.3%).
Return on Equity
High ROE: H's Return on Equity (17.5%) is considered low.
Next Steps
Financial Health
How is Hydro One's financial position?
Financial Position Analysis
Short Term Liabilities: H's short term assets (CA$1.2B) do not cover its short term liabilities (CA$3.5B).
Long Term Liabilities: H's short term assets (CA$1.2B) do not cover its long term liabilities (CA$14.5B).
Debt to Equity History and Analysis
Debt Level: H's debt to equity ratio (125.9%) is considered high.
Reducing Debt: H's debt to equity ratio has increased from 107.1% to 125.9% over the past 5 years.
Debt Coverage: H's debt is not well covered by operating cash flow (16.1%).
Interest Coverage: H's interest payments on its debt are well covered by EBIT (3.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Hydro One current dividend yield, its reliability and sustainability?
3.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: H's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: H's dividend (3.45%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, H has been paying a dividend for less than 10 years.
Growing Dividend: H's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.6%), H's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: H's dividends in 3 years are forecast to be covered by earnings (73.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Mark Poweska (50 yo)
1.67yrs
Tenure
CA$860,387
Compensation
Mr. Mark Poweska, P.Eng. is President, CEO and Director at Hydro One Inc. since May 10, 2019. Mr. Poweska is a Director at Ontario Energy Association. Mr. Poweska has been the President, Chief Executive Of...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD675.58K) is below average for companies of similar size in the Canadian market ($USD6.61M).
Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 1.67yrs | CA$860.39k | 0.000030% CA$ 5.3k | |
| Chief Financial Officer | 2.33yrs | CA$909.03k | 0.0031% CA$ 540.1k | |
| Chief Information Officer | 2yrs | CA$544.27k | 0.000080% CA$ 14.1k | |
| Chief Corporate Affairs & Customer Care Officer | 1yr | CA$586.00k | 0.0014% CA$ 239.3k | |
| Chief Operating Officer | 1yr | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Compliance Officer | 6.08yrs | CA$402.38k | no data | |
| Executive VP & Chief Legal Officer | 1.33yrs | no data | no data | |
| Vice President of Marketing and Communications | no data | no data | no data | |
| Chief Human Resources Officer | 1yr | no data | no data | |
| Chief Safety Officer | 0.17yr | no data | 0.00055% CA$ 96.8k | |
| Corporate Secretary | no data | no data | no data |
1.3yrs
Average Tenure
49yo
Average Age
Experienced Management: H's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 2.42yrs | CA$98.92k | 0.000020% CA$ 3.5k | |
| Director | 0.50yr | no data | no data | |
| Independent Director | 2.42yrs | CA$102.15k | no data | |
| Independent Director | 1yr | no data | 0.00036% CA$ 63.3k | |
| Independent Director | 2.42yrs | CA$94.44k | no data | |
| Independent Director | 2.42yrs | CA$103.15k | no data | |
| Independent Chairman of the Board | 1.42yrs | CA$111.07k | no data | |
| Independent Director | 2.42yrs | CA$97.67k | no data | |
| Independent Director | 2.42yrs | CA$97.44k | no data | |
| Independent Director | 2.42yrs | CA$94.44k | no data |
2.4yrs
Average Tenure
61.5yo
Average Age
Experienced Board: H's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hydro One Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hydro One Limited
- Ticker: H
- Exchange: TSX
- Founded: 2015
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: CA$17.592b
- Shares outstanding: 597.56m
- Website: https://www.hydroone.com
Number of Employees
Location
- Hydro One Limited
- South Tower
- 8th Floor
- Toronto
- Ontario
- M5G 2P5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| H | TSX (The Toronto Stock Exchange) | Yes | New Common Stock | CA | CAD | Nov 2015 |
| HRNN.F | OTCPK (Pink Sheets LLC) | Yes | New Common Stock | US | USD | Nov 2015 |
| 8H1 | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Nov 2015 |
Biography
Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. It operates through three segments: Transmission, Distribution, and Other Business. ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:51 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.