Hydro One Limited
Hydro One Limited Fundamental Analysis
Hydro One Limited (HRNNF) shows moderate financial fundamentals with a PE ratio of 28.42, profit margin of 13.50%, and ROE of 10.53%. The company generates $9.0B in annual revenue with moderate year-over-year growth of 8.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HRNNF's fundamental strength across five key dimensions:
Efficiency Score
WeakHRNNF struggles to generate sufficient returns from assets.
Valuation Score
WeakHRNNF trades at a premium to fair value.
Growth Score
ModerateHRNNF shows steady but slowing expansion.
Financial Health Score
WeakHRNNF carries high financial risk with limited liquidity.
Profitability Score
WeakHRNNF struggles to sustain strong margins.
Key Financial Metrics
Is HRNNF Expensive or Cheap?
P/E Ratio
HRNNF trades at 28.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HRNNF's PEG of 8.23 indicates potential overvaluation.
Price to Book
The market values Hydro One Limited at 2.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.34 times EBITDA. This is generally considered low.
How Well Does HRNNF Make Money?
Net Profit Margin
For every $100 in sales, Hydro One Limited keeps $13.50 as profit after all expenses.
Operating Margin
Core operations generate 25.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.53 in profit for every $100 of shareholder equity.
ROA
Hydro One Limited generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hydro One Limited generates strong operating cash flow of $2.49B, reflecting robust business health.
Free Cash Flow
Hydro One Limited generates weak or negative free cash flow of $-291.64M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.49 in free cash annually.
FCF Yield
HRNNF converts -0.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HRNNF Stacks Against Its Sector Peers
| Metric | HRNNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.42 | 19.51 | Worse (Expensive) |
| ROE | 10.53% | 940.00% | Weak |
| Net Margin | 13.50% | 9081.00% | Weak |
| Debt/Equity | 1.52 | 1.73 | Neutral |
| Current Ratio | 0.61 | 1.48 | Weak Liquidity |
| ROA | 3.08% | -169.00% (disorted) | Weak |
HRNNF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hydro One Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.29%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
44.52%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
56.24%
Industry Style: Defensive, Dividend, Income
High Growth