Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario.
Hydro One Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$30.38|
|52 Week High||CA$26.38|
|52 Week Low||CA$32.14|
|1 Month Change||-3.13%|
|3 Month Change||0.96%|
|1 Year Change||6.71%|
|3 Year Change||53.75%|
|5 Year Change||17.71%|
|Change since IPO||40.52%|
Recent News & Updates
|H||CA Electric Utilities||CA Market|
Return vs Industry: H underperformed the Canadian Electric Utilities industry which returned 12.9% over the past year.
Return vs Market: H underperformed the Canadian Market which returned 30.8% over the past year.
Stable Share Price: H is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: H's weekly volatility (1%) has been stable over the past year.
About the Company
Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. It operates through three segments: Transmission Business, Distribution Business, and Other. The company owns and operates approximately 30,000 circuit kilometers (KMs) of high-voltage transmission lines and 124,000 circuit KMs of primary low-voltage distribution network.
Hydro One Fundamentals Summary
|H fundamental statistics|
Is H overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|H income statement (TTM)|
|Cost of Revenue||CA$4.88b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.58|
|Net Profit Margin||12.98%|
How did H perform over the long term?See historical performance and comparison
3.5%Current Dividend Yield
Is Hydro One undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: H (CA$30.73) is trading below our estimate of fair value (CA$98.63)
Significantly Below Fair Value: H is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: H is good value based on its PE Ratio (19.4x) compared to the North American Electric Utilities industry average (21.5x).
PE vs Market: H is poor value based on its PE Ratio (19.4x) compared to the Canadian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: H is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: H is good value based on its PB Ratio (1.7x) compared to the XN Electric Utilities industry average (1.9x).
How is Hydro One forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: H's forecast earnings growth (4.8% per year) is above the savings rate (1.5%).
Earnings vs Market: H's earnings (4.8% per year) are forecast to grow slower than the Canadian market (12.1% per year).
High Growth Earnings: H's earnings are forecast to grow, but not significantly.
Revenue vs Market: H's revenue (3.1% per year) is forecast to grow slower than the Canadian market (6.1% per year).
High Growth Revenue: H's revenue (3.1% 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 (9.2%).
How has Hydro One performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: H has high quality earnings.
Growing Profit Margin: H's current net profit margins (13%) are lower than last year (26.1%).
Past Earnings Growth Analysis
Earnings Trend: H's earnings have grown by 19.8% per year over the past 5 years.
Accelerating Growth: H's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: H had negative earnings growth (-46.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.2%).
Return on Equity
High ROE: H's Return on Equity (8.9%) is considered low.
How is Hydro One's financial position?
Financial Position Analysis
Short Term Liabilities: H's short term assets (CA$1.4B) do not cover its short term liabilities (CA$3.1B).
Long Term Liabilities: H's short term assets (CA$1.4B) do not cover its long term liabilities (CA$16.4B).
Debt to Equity History and Analysis
Debt Level: H's debt to equity ratio (130%) is considered high.
Reducing Debt: H's debt to equity ratio has increased from 105.9% to 130% over the past 5 years.
Debt Coverage: H's debt is not well covered by operating cash flow (14.5%).
Interest Coverage: H's interest payments on its debt are well covered by EBIT (3.3x coverage).
What is Hydro One current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: H's dividend (3.47%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).
High Dividend: H's dividend (3.47%) is low compared to the top 25% of dividend payers in the Canadian market (4.59%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, H has been paying a dividend for less than 10 years.
Growing Dividend: H's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.4%), H's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: H's dividends in 3 years are forecast to be covered by earnings (68.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Poweska (51 yo)
Mr. Mark Poweska, P.Eng., has been the Chief Executive Officer and President of Hydro One Limited since May 10, 2019 and serves as its Director since May 10, 2019. Mr. Poweska has been the President, Chief...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD848.13K) is below average for companies of similar size in the Canadian market ($USD6.01M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: H's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: H's board of directors are considered experienced (3.1 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hydro One Limited's employee growth, exchange listings and data sources
- Name: Hydro One Limited
- Ticker: H
- Exchange: TSX
- Founded: 2015
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: CA$18.383b
- Shares outstanding: 598.22m
- Website: https://www.hydroone.com
Number of Employees
- Hydro One Limited
- South Tower
- 8th Floor
- M5G 2P5
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 22:10|
|End of Day Share Price||2021/09/27 00:00|
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.