Hydro One Limited
Hydro One Limited is a Canadian utility company that is primarily engaged in the transmission and distribution of electricity. Its principal operations involve managing Ontario's electrical grid, which includes high-voltage transmission lines that are crucial for delivering power across the province. The company plays a vital role in the energy sector, contributing to the stability and reliability of electricity supplies in one of the most populous regions in Canada. Hydro One Limited is responsible for the maintenance, modernization, and expansion of the infrastructure that underpins its vast service territory. With a focus on regulated utility operations, the company provides essential services to residential, commercial, and industrial customers, ensuring efficient energy delivery. As a significant player in the Canadian energy market, Hydro One Limited also impacts regional economic development and energy policy, underpinning its importance in the national energy landscape.
$37.23
+$0.00 (+0.00%)
EOD Oct 21, 2026
26.39% operating margin is above average. ROIC at 7.62%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue grew 45.1%, still solid.
Negative free cash flow of -C$355M. The business is consuming cash, not generating it.
22.1x earnings. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$9.52B
▲ +45.1% YoY
Net Income (TTM)
C$1.43B
▲ +57.7% YoY
Op. Margin
25.70%
▲ +1.4pp YoY
ROIC
7.62%
▲ +2.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-C$327M
▼ -76.4% YoY
Op. Cash Flow (TTM)
C$2.66B
▲ +56.0% YoY
Net Debt
C$18.61B
Cash & Equiv.
C$549M
3Y CAGR: +5.1%
Continue Research
Is Hydro One (HRNNF) overvalued?
At a P/E of 22.1, Hydro One (HRNNF)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Hydro One scores 32/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.0%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is Hydro One a high-quality business?+
Hydro One scores 32 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 25.7% operating margin and a 7.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Hydro One (HRNNF) pay a dividend, and how much?+
Yes, Hydro One pays a regular dividend of about C$0.50 per share per year (typically in quarterly installments), a yield of roughly 1.0% at the current price. That is a payout ratio of about 21.0% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For HRNNF's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Hydro One a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh HRNNF's valuation and scores 32/100 on quality (lower-quality). It also yields about 1.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Utilities - Regulated Electric
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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