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Hydro One

DB:8H1
Snowflake Description

Second-rate dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8H1
DB
CA$16B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. The last earnings update was 55 days ago. More info.


Add to Portfolio Compare Print
  • Hydro One has significant price volatility in the past 3 months.
8H1 Share Price and Events
7 Day Returns
1.2%
DB:8H1
0.2%
Europe Electric Utilities
-0.6%
DE Market
1 Year Returns
18%
DB:8H1
-2.6%
Europe Electric Utilities
-20.9%
DE Market
8H1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hydro One (8H1) 1.2% -14.2% -5.8% 18% -4.2% -
Europe Electric Utilities 0.2% -18.2% -13.1% -2.6% 19.9% -3%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • 8H1 outperformed the Electric Utilities industry which returned -2.6% over the past year.
  • 8H1 outperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
8H1
Industry
5yr Volatility vs Market

8H1 Value

 Is Hydro One undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hydro One to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hydro One.

DB:8H1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in CAD CA$ 1.0545151612903
Payout Ratio Company Filings (2019-12-31) 7386.9%
Discount Rate (Cost of Equity) See below 4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:8H1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.245 (1 + (1- 26.5%) (81.6%))
0.593
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 5.44%)
3.96%

Discounted Cash Flow Calculation for DB:8H1 using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Hydro One is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:8H1 Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= CA$1.05 / (3.96% - -0.39%)
CA$9.48
DB:8H1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:8H1 represents 0.62548x of TSX:H
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.62548x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 24.23 x 0.62548
€15.16
Value per share (EUR) From above. €15.16
Current discount Discount to share price of €16.30
= -1 x (€16.30 - €15.16) / €15.16
-7.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hydro One is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hydro One's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hydro One's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:8H1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.30
TSX:H Share Price ** TSX (2020-04-06) in CAD CA$26.06
Europe Electric Utilities Industry PE Ratio Median Figure of 76 Publicly-Listed Electric Utilities Companies 10.33x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hydro One.

DB:8H1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:H Share Price ÷ EPS (both in CAD)

= 26.06 ÷ 1.30

19.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hydro One is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • Hydro One is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Hydro One's expected growth come at a high price?
Raw Data
DB:8H1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
5.3%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 37 Publicly-Listed Electric Utilities Companies 1.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:8H1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.98x ÷ 5.3%

3.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hydro One is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hydro One's assets?
Raw Data
DB:8H1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$15.70
TSX:H Share Price * TSX (2020-04-06) in CAD CA$26.06
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.76x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:8H1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:H Share Price ÷ Book Value per Share (both in CAD)

= 26.06 ÷ 15.70

1.66x

* Primary Listing of Hydro One.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hydro One is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Hydro One's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Hydro One has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8H1 Future Performance

 How is Hydro One expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hydro One expected to grow at an attractive rate?
  • Hydro One's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Hydro One's earnings growth is positive but not above the Germany market average.
  • Hydro One's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:8H1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:8H1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 5.3%
DB:8H1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 3.1%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:8H1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:8H1 Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 7,441 2,237 1
2023-12-31 7,233 2,110 1
2022-12-31 7,300 1,967 891 3
2021-12-31 6,995 1,861 883 10
2020-12-31 6,813 1,753 833 9
2020-04-07
DB:8H1 Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 6,480 1,614 778
2019-09-30 6,256 1,462 -138
2019-06-30 6,269 1,322 -185
2019-03-31 6,333 1,317 -140
2018-12-31 6,150 1,575 -89
2018-09-30 6,098 1,699 771
2018-06-30 6,014 1,633 796
2018-03-31 5,908 1,621 713
2017-12-31 5,990 1,716 658
2017-09-30 6,165 1,667 631
2017-06-30 6,349 1,735 645
2017-03-31 6,524 1,759 680

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hydro One's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
  • Hydro One's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:8H1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Hydro One Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8H1 Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.49 1.55 1.43 2.00
2021-12-31 1.48 1.52 1.38 9.00
2020-12-31 1.39 1.48 1.33 9.00
2020-04-07
DB:8H1 Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.30
2019-09-30 -0.23
2019-06-30 -0.31
2019-03-31 -0.23
2018-12-31 -0.15
2018-09-30 1.29
2018-06-30 1.34
2018-03-31 1.20
2017-12-31 1.11
2017-09-30 1.06
2017-06-30 1.08
2017-03-31 1.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hydro One is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hydro One's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hydro One has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8H1 Past Performance

  How has Hydro One performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hydro One's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hydro One's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Hydro One has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Hydro One has become profitable in the last year making it difficult to compare the Europe Electric Utilities industry average.
Earnings and Revenue History
Hydro One's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hydro One Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8H1 Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 6,480.00 778.00
2019-09-30 6,256.00 -138.00
2019-06-30 6,269.00 -185.00
2019-03-31 6,333.00 -140.00
2018-12-31 6,150.00 -89.00
2018-09-30 6,098.00 771.00
2018-06-30 6,014.00 796.00
2018-03-31 5,908.00 713.00
2017-12-31 5,990.00 658.00
2017-09-30 6,165.00 631.00
2017-06-30 6,349.00 645.00
2017-03-31 6,524.00 680.00
2016-12-31 6,552.00 721.00
2016-09-30 6,460.00 736.00
2016-06-30 6,399.00 691.00
2016-03-31 6,416.00 670.00
2015-12-31 6,538.00 690.00
2015-09-30 6,678.00 763.00
2015-06-30 6,589.00 744.00
2015-03-31 6,592.00 723.00
2014-12-31 6,548.00 731.00
2014-09-30 6,443.00 670.00
2014-06-30 6,429.00 715.00
2014-03-31 6,266.00 768.00
2013-12-31 6,074.00 785.00
2013-09-30 5,952.00 790.00
2013-06-30 5,876.00 773.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hydro One has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hydro One used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Hydro One has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hydro One's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hydro One has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8H1 Health

 How is Hydro One's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hydro One's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hydro One's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hydro One's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hydro One's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hydro One Company Filings, last reported 3 months ago.

DB:8H1 Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 9,869.00 12,618.00 30.00
2019-09-30 9,798.00 12,497.00 63.00
2019-06-30 9,689.00 12,576.00 35.00
2019-03-31 9,672.00 12,335.00 4.00
2018-12-31 9,643.00 12,450.00 483.00
2018-09-30 10,479.00 12,389.00 613.00
2018-06-30 10,417.00 12,995.00 1,245.00
2018-03-31 10,348.00 11,543.00 28.00
2017-12-31 10,253.00 11,480.00 25.00
2017-09-30 10,224.00 12,049.00 622.00
2017-06-30 10,130.00 11,389.00 33.00
2017-03-31 10,139.00 11,133.00 23.00
2016-12-31 10,089.00 11,149.00 50.00
2016-09-30 10,080.00 10,720.00 140.00
2016-06-30 9,966.00 10,549.00 6.00
2016-03-31 9,933.00 10,556.00 253.00
2015-12-31 9,924.00 10,198.00 94.00
2015-09-30
2015-06-30 8,257.00 9,293.00 271.00
2015-03-31 8,152.00 8,964.00 183.00
2014-12-31 7,947.00 8,930.00 102.00
2014-09-30 7,684.00 9,707.00 832.00
2014-06-30 7,541.00 9,715.00 892.00
2014-03-31 7,456.00 9,244.00 636.00
2013-12-31 7,415.00 9,088.00 822.00
2013-09-30 7,285.00 8,527.00 36.00
2013-06-30 7,096.00 8,616.00
  • Hydro One's level of debt (127.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (112.3% vs 127.9% today).
  • Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Hydro One's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hydro One has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8H1 Dividends

 What is Hydro One's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.71%
Current annual income from Hydro One dividends. Estimated to be 4.05% next year.
If you bought €2,000 of Hydro One shares you are expected to receive €74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hydro One's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Hydro One's dividend is below the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:8H1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 51 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:8H1 Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 1.20 1.00
2023-12-31 1.14 3.00
2022-12-31 1.11 5.00
2021-12-31 1.05 11.00
2020-12-31 1.00 11.00
2020-04-07
DB:8H1 Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-12 0.966 3.701
2019-11-07 0.966 3.775
2019-08-09 0.966 3.966
2019-05-09 0.966 4.203
2019-02-21 0.920 4.401
2018-11-08 0.920 4.536
2018-08-14 0.920 4.725
2018-05-15 0.920 4.719
2018-02-13 0.880 4.254
2017-11-10 0.880 3.971
2017-08-08 0.880 3.878
2017-05-04 0.880 3.814
2017-02-10 0.840 3.521
2016-11-11 0.840 3.571
2016-08-12 0.840 3.331
2016-05-06 0.840 3.359
2016-02-12 0.840 3.574

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Hydro One has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Hydro One only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Hydro One's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Hydro One's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hydro One afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hydro One has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8H1 Management

 What is the CEO of Hydro One's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Poweska
COMPENSATION CA$860,387
AGE 49
TENURE AS CEO 0.9 years
CEO Bio

Mr. Mark Poweska, P.Eng. is President, CEO and Director at Hydro One Inc. since May 10, 2019. Mr. Poweska is a Director at Ontario Energy Association. Mr. Poweska has been the President, Chief Executive Officer and Director of Hydro One Limited since May 10, 2019. Mr. Poweska served as an Executive Vice-President of Operations at British Columbia Hydro and Power Authority since October 2017 until May 2019. Mr. Poweska served as Senior Vice-President of Training, Development and Generation at British Columbia Hydro and Power Authority since December 2015 until October 2017. Mr. Poweska served as Acting Executive Vice President of Transmission & Distribution at British Columbia Hydro and Power Authority since July 11, 2017 until October 2017. He leads the team responsible for the asset management, maintenance and operations of BC Hydro's 33 integrated generating facilities located throughout the British Columbia. He also leads British Columbia Hydro and Power Authority's efforts to become a learning organization through leadership of the Training and Development organization in implementing the Professional, Leadership, Apprentice and Trades Training plan. Since joining BC Hydro in 1993, Mr. Poweska served in many different parts of British Columbia Hydro and Power Authority including engineering, construction, procurement and operations. He is a Professional Engineer with the Association of Professional Engineers and Geoscientists of B.C.

CEO Compensation
  • Insufficient data for Mark to compare compensation growth.
  • Mark's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Hydro One management team in years:

1.1
Average Tenure
48.5
Average Age
  • The average tenure for the Hydro One management team is less than 2 years, this suggests a new team.
Management Team

Mark Poweska

TITLE
President
COMPENSATION
CA$860K
AGE
49
TENURE
0.9 yrs

Chris Lopez

TITLE
Chief Financial Officer
COMPENSATION
CA$909K
AGE
44
TENURE
1.6 yrs

Brad Bowness

TITLE
Chief Information Officer
COMPENSATION
CA$544K
AGE
43
TENURE
1.3 yrs

Saylor Millitz-Lee

TITLE
Chief Human Resources Officer
COMPENSATION
CA$731K
AGE
54
TENURE
1 yrs

Jason Fitzsimmons

TITLE
Chief Corporate Affairs & Customer Care Officer
COMPENSATION
CA$586K
AGE
48
TENURE
1.7 yrs

David Lebeter

TITLE
Chief Operating Officer
TENURE
0.3 yrs

Omar Javed

TITLE
Vice President of Investor Relations

Joe Agostino

TITLE
Chief Compliance Officer
COMPENSATION
CA$402K
TENURE
5.3 yrs

Paul Harricks

TITLE
Executive VP & Chief Legal Officer
AGE
64
TENURE
0.6 yrs

Jay Armitage

TITLE
Director of Corporate Communications
Board of Directors Tenure

Average tenure and age of the Hydro One board of directors in years:

1.7
Average Tenure
58.5
Average Age
  • The average tenure for the Hydro One board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tim Hodgson

TITLE
Independent Chairman of the Board
COMPENSATION
CA$111K
AGE
58
TENURE
0.7 yrs

Mark Poweska

TITLE
President
COMPENSATION
CA$860K
AGE
49
TENURE
0.9 yrs

G. Cowper-Smith

TITLE
Independent Director
COMPENSATION
CA$102K
AGE
70
TENURE
1.7 yrs

Russ Robertson

TITLE
Independent Director
COMPENSATION
CA$98K
AGE
71
TENURE
1.7 yrs

Melissa Sonberg

TITLE
Independent Director
COMPENSATION
CA$103K
AGE
58
TENURE
1.7 yrs

Cherie Brant

TITLE
Independent Director
COMPENSATION
CA$94K
AGE
44
TENURE
1.7 yrs

Anne Giardini

TITLE
Independent Director
COMPENSATION
CA$105K
AGE
59
TENURE
1.7 yrs

David Hay

TITLE
Independent Director
COMPENSATION
CA$94K
AGE
64
TENURE
1.7 yrs

Jessica McDonald

TITLE
Independent Director
COMPENSATION
CA$97K
AGE
50
TENURE
1.7 yrs

Bill Sheffield

TITLE
Independent Director
COMPENSATION
CA$99K
AGE
70
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Hydro One individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
19. Feb 20 Buy William Sheffield Individual 18. Feb 20 18. Feb 20 99 €20.14 €1,994
12. Sep 19 Sell Darlene Bradley Individual 14. May 19 14. May 19 -1,560 €14.58 €-22,744
X
Management checks
We assess Hydro One's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hydro One has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8H1 News

Simply Wall St News

8H1 Company Info

Description

Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. It operates through three segments: Transmission, Distribution, and Other Business. The company owns and operates approximately 123,000 circuit kilometers of low-voltage distribution network. It serves approximately 1.4 million residential, small business, commercial, and industrial customers. The company also provides telecommunications support services for its transmission and distribution businesses; and communications and information technology solutions to organizations for broadband network connectivity. Hydro One Limited was incorporated in 2015 and is headquartered in Toronto, Canada.

Details
Name: Hydro One Limited
8H1
Exchange: DB
Founded: 2015
CA$10,204,571,296
597,056,848
Website: http://www.hydroone.com
Address: Hydro One Limited
South Tower,
8th Floor,
Toronto,
Ontario, M5G 2P5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX H New Common Stock The Toronto Stock Exchange CA CAD 05. Nov 2015
OTCPK HRNN.F New Common Stock Pink Sheets LLC US USD 05. Nov 2015
DB 8H1 New Common Stock Deutsche Boerse AG DE EUR 05. Nov 2015
Number of employees
Current staff
Staff numbers
5,730
Hydro One employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 00:21
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.