ScoreWhy is Hydro One Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.68%
- The company has been able to generate a Return on Capital Employed (avg) of 6.68% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 5.06% and Operating profit at 8.22% over the last 5 years
3
With ROE of 10.76%, it has a expensive valuation with a 2.65 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 14.99%, its profits have risen by 12.3% ; the PEG ratio of the company is 2
4
Underperformed the market in the last 1 year
- The stock has generated a return of 14.99% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hydro One Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hydro One Ltd.
14.99%
2.83
13.36%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.06%
EBIT Growth (5y)
8.22%
EBIT to Interest (avg)
3.35
Debt to EBITDA (avg)
5.54
Net Debt to Equity (avg)
1.44
Sales to Capital Employed (avg)
0.29
Tax Ratio
13.86%
Dividend Payout Ratio
58.93%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
6.68%
ROE (avg)
10.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.65
EV to EBIT
23.41
EV to EBITDA
15.67
EV to Capital Employed
1.66
EV to Sales
5.72
PEG Ratio
2.02
Dividend Yield
NA
ROCE (Latest)
7.10%
ROE (Latest)
10.76%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
ROCE(HY)
Highest at 10.93%
INVENTORY TURNOVER RATIO(HY)
Highest at 237.73 times
DIVIDEND PER SHARE(HY)
Highest at CAD 6.54
NET SALES(Q)
Highest at CAD 2,648 MM
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 148.89 %
DIVIDEND PAYOUT RATIO(Y)
Lowest at 51.18%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.54 times
Here's what is working for Hydro One Ltd.
Inventory Turnover Ratio
Highest at 237.73 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at CAD 6.54 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Net Sales
Highest at CAD 2,648 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Here's what is not working for Hydro One Ltd.
Debt-Equity Ratio
Highest at 148.89 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 6.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 51.18%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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