Hydro One Ltd
TSX:H

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Hydro One Ltd Logo
Hydro One Ltd
TSX:H
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Price: 44.38 CAD -0.78% Market Closed
Market Cap: 26.6B CAD
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Intrinsic Value

The intrinsic value of one H stock under the Base Case scenario is 34.06 CAD. Compared to the current market price of 44.38 CAD, Hydro One Ltd is Overvalued by 23%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

H Intrinsic Value
34.06 CAD
Overvaluation 23%
Intrinsic Value
Price
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Base Case
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Hydro One Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Hydro One Ltd. stands as a prominent player in Canada's electricity transmission and distribution sector, serving approximately 1.5 million customers across Ontario. As a publicly traded company, it was carved out of Ontario Hydro in 2015, emerging as the largest electricity transmission utility in the province. The company's core mission revolves around delivering safe and reliable power while investing in modernizing its infrastructure to accommodate increasing demand and the shift towards renewable energy sources. With significant assets exceeding CAD 30 billion, Hydro One plays an essential role in regional energy stability and economic growth, making it a cornerstone of Ontario's energy...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Hydro One Ltd

Current Assets 1.4B
Cash & Short-Term Investments 74m
Receivables 748m
Other Current Assets 569m
Non-Current Assets 32.8B
Long-Term Investments 48m
PP&E 28B
Intangibles 1.1B
Other Non-Current Assets 3.7B
Current Liabilities 3.5B
Accounts Payable 387m
Accrued Liabilities 1.2B
Short-Term Debt 877m
Other Current Liabilities 993m
Non-Current Liabilities 18.8B
Long-Term Debt 14.8B
Other Non-Current Liabilities 4.1B
Efficiency

Earnings Waterfall
Hydro One Ltd

Revenue
8.1B CAD
Cost of Revenue
-3.9B CAD
Gross Profit
4.2B CAD
Operating Expenses
-2.3B CAD
Operating Income
1.9B CAD
Other Expenses
-762m CAD
Net Income
1.1B CAD

Free Cash Flow Analysis
Hydro One Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

H Profitability Score
Profitability Due Diligence

Hydro One Ltd's profitability score is 53/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Operating Income
Positive Net Income
Positive 3-Years Revenue Growth
53/100
Profitability
Score

Hydro One Ltd's profitability score is 53/100. The higher the profitability score, the more profitable the company is.

H Solvency Score
Solvency Due Diligence

Hydro One Ltd's solvency score is 25/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Average D/E
Short-Term Solvency
Low Altman Z-Score
25/100
Solvency
Score

Hydro One Ltd's solvency score is 25/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

H Price Targets Summary
Hydro One Ltd

Wall Street analysts forecast H stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for H is 45.08 CAD with a low forecast of 40.4 CAD and a high forecast of 48.3 CAD.

Lowest
Price Target
40.4 CAD
9% Downside
Average
Price Target
45.08 CAD
2% Upside
Highest
Price Target
48.3 CAD
9% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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100
Shareholder Yield

Current shareholder yield for H is .

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Profile

Hydro One Ltd Logo
Hydro One Ltd

Country

Canada

Industry

Utilities

Market Cap

26.6B CAD

Dividend Yield

3.42%

Description

Hydro One Ltd. engages in the transmission and distribution of electricity. The company is headquartered in Toronto, Ontario. The company went IPO on 2015-11-05. The firm operates through three segments: Transmission, Distribution and Other. The Transmission Segment, which comprises the transmission of high voltage electricity across the province, interconnecting local distribution companies and certain directly connected industrial customers throughout the Ontario electricity grid. The Distribution Segment, which comprises the delivery of electricity to end customers and certain other municipal electricity distributors. The other segment consists of Company's subsidiary, Acronym Solutions Inc., which provides telecommunications support for the Company's transmission and distribution businesses. The firm's subsidiaries include Hydro One Inc., Hydro One Networks Inc. (Hydro One Networks), Hydro One Sault Ste. Marie LP (HOSSM) and B2M Limited Partnership (B2M LP), among others.

Contact

ONTARIO
TORONTO
483 Bay Street, 8th Floor, South Tower
+14163455000.0
www.hydroone.com

IPO

2015-11-05

Employees

6 000

Officers

President, CEO & Director
Mr. David Lebeter
Executive Vice President of Strategy, Energy Transition & HR
Ms. Megan Telford
Executive Vice President of Capital Portfolio Delivery
Mr. Andrew Spencer
Executive VP, CFO & Regulatory Officer
Mr. Henry P. Taylor BCom, C.A., MBA
Executive VP of Safety, Operations & Customer Experience
Ms. Teri French
Vice President of Investor Relations
Mr. Omar Javed
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Chief Compliance Officer, Senior VP & General Counsel
Mr. Joseph Agostino
General Counsel
Ms. Cassidy McFarlane
Vice President of Marketing and Communications
Jay Armitage
Executive VP of Digital & Technology Solutions
Ms. Renee Dione McKenzie
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See Also

Discover More
What is the Intrinsic Value of one H stock?

The intrinsic value of one H stock under the Base Case scenario is 34.06 CAD.

Is H stock undervalued or overvalued?

Compared to the current market price of 44.38 CAD, Hydro One Ltd is Overvalued by 23%.

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