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Hydro One Ltd.

  • Market Cap: Large Cap
  • Industry: Power
  • ISIN: CA4488112083
  • TSE: H
CAD
51.61
0.36 (0.7%)

Sep 22

TSE

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Algonquin Power & Utilities Corp.
Fortis, Inc.
Emera, Inc.
Hydro One Ltd.
ATCO Ltd.
TransAlta Corp.
Capital Power Corp.
Brookfield Renewable Partners LP
Northland Power, Inc.
Boralex, Inc.
TransAlta Renewables, Inc.

Why 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
Flat results in Mar 26
  • 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
4
With ROE of 10.76%, it has a expensive valuation with a 2.71 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 12.53%, its profits have risen by 12.3% ; the PEG ratio of the company is 2.1
5
Underperformed the market in the last 1 year
  • The stock has generated a return of 12.53% in the last 1 year, much lower than market (S&P/TSX 60) returns of 30.16%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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.
5.63%
2.76
14.35%
S&P/TSX 60
20.36%
2.51
12.02%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.06%
EBIT Growth (5y)
8.22%
EBIT to Interest (avg)
3.32
Debt to EBITDA (avg)
5.50
Net Debt to Equity (avg)
1.44
Sales to Capital Employed (avg)
0.29
Tax Ratio
12.29%
Dividend Payout Ratio
58.93%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
6.94%
ROE (avg)
10.97%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.71
EV to EBIT
23.74
EV to EBITDA
15.89
EV to Capital Employed
1.69
EV to Sales
5.80
PEG Ratio
2.06
Dividend Yield
NA
ROCE (Latest)
7.10%
ROE (Latest)
10.76%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CAD 2,660 MM

ROCE(HY)

Highest at 11.15%

DIVIDEND PER SHARE(HY)

Highest at CAD 6.61

RAW MATERIAL COST(Y)

Fallen by 0.5% (YoY

-5What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at 149.66 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.61 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 57.34%

Here's what is working for Hydro One Ltd.

Dividend per share
Highest at CAD 6.61 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow
Highest at CAD 2,660 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Raw Material Cost
Fallen by 0.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hydro One Ltd.

Debt-Equity Ratio
Highest at 149.66 % and Grown
In each half year in the last five Semi-Annual periods
MOJO 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 6.61 times and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio
Lowest at 57.34%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)

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