# Hydro One Limited (H.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Electric Utilities. Price C$53.11, market value C$31.9 billion.

## Valuation
- **P/E (trailing): 22.5×** (5-yr avg 20.7×, 3-yr avg 22.3×). Hydro One Limited trades at 22.5× trailing earnings, close to its own five-year average of 20.7×. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 22.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.38**. A PEG of 1.38 is in the range usually read as fairly priced for its growth.
- **Price / sales: 3.3×**. Each dollar of revenue is priced at 3.3×.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.9×**. Enterprise value is 14.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -0.8%** (5-yr avg -0.1%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 30.3%**. Hydro One Limited keeps 30.3% of revenue after the direct cost of what it sells.
- **Operating margin: 25.1%**. 25.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 14.8%**. 14.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.6%**. 10.6% on shareholders' equity is solid.
- **Return on invested capital: 6.0%**. Return on all capital, debt included, is 6.0%.
- **Return on assets: 3.6%**. Each dollar of assets produces 3.6% of profit.

## Growth
- **Revenue growth (1 yr): 6.6%** (3-yr 5.1%/yr, 5-yr 4.4%/yr). Revenue grew 6.6% over the last year, against 4.4% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 16.1%** (3-yr 8.4%/yr, 5-yr -5.4%/yr). Earnings per share rose 16.1%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.52**. Debt is 1.52 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 5.5×**. It would take 5.5 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Current ratio: 0.61** (quick 0.60). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.53**. A Z-score of 1.53 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.66%** (C$1.35 per share, trailing). Hydro One Limited yields 2.66%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 59%**. 59% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 8**. 8 straight years of increases.
- **Dividend growth (5 yr): 5.5%/yr** (1-yr 6.1%). The dividend has grown 5.5% a year over five years.

## Price and momentum
- **Total return (1 yr): 9.1%** (YTD -1.6%, 3-mo -6.2%). The shares are up 9.1% over twelve months including dividends.
- **From 52-week high: -12.3%** (10.1% above the low). Trading 12% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 34**. An RSI of 34 is neutral.
- **Beta (1 yr): -0.13** (volatility 15%). Beta of -0.13 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=H.TO · Page: https://foliofundamentals.com/stocks/h.to

Not investment advice.