Hydro One Stock Buy Hold or Sell Recommendation
| H Stock | CAD 54.13 0.41 0.76% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Hydro One is 'Cautious Hold'. The recommendation algorithm takes into account all of Hydro One's available fundamental, technical, and predictive indicators you will find on this site.
Check out Hydro One Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Hydro and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Hydro One. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
Hydro |
Execute Hydro One Buy or Sell Advice
The Hydro recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hydro One. Macroaxis does not own or have any residual interests in Hydro One or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hydro One's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Small | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Hydro One Trading Alerts and Improvement Suggestions
| Hydro One has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Hydro One currently holds 17.73 B in liabilities with Debt to Equity (D/E) ratio of 130.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Hydro One has a current ratio of 0.4, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Hydro One until it has trouble settling it off, either with new capital or with free cash flow. So, Hydro One's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Hydro One sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Hydro to invest in growth at high rates of return. When we think about Hydro One's use of debt, we should always consider it together with cash and equity. | |
| About 47.0% of Hydro One shares are held by company insiders | |
| Latest headline from news.google.com: H.TO Stock Today December 30 Ontario Storm Leaves 15k Without Power - Meyka |
Hydro One Returns Distribution Density
The distribution of Hydro One's historical returns is an attempt to chart the uncertainty of Hydro One's future price movements. The chart of the probability distribution of Hydro One daily returns describes the distribution of returns around its average expected value. We use Hydro One price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hydro One returns is essential to provide solid investment advice for Hydro One.
| Mean Return | 0.13 | Value At Risk | -0.96 | Potential Upside | 1.10 | Standard Deviation | 0.72 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hydro One historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Hydro One Cash Flow Accounts
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 (projected) | ||
| Free Cash Flow | 78M | 174M | 67M | (274M) | (315.1M) | (330.9M) | |
| Depreciation | 922M | 966M | 996M | 1.1B | 1.2B | 789.6M | |
| Other Non Cash Items | 1M | 8M | (77M) | (54M) | (69.3M) | (65.8M) | |
| Dividends Paid | 629M | 662M | 700M | 743M | 854.5M | 495.2M | |
| Capital Expenditures | 2.1B | 2.1B | 2.3B | 2.8B | 3.2B | 1.8B | |
| Net Income | 965M | 1.1B | 1.1B | 1.2B | 1.3B | 857.4M | |
| End Period Cash Flow | 540M | 530M | 79M | 716M | 823.4M | 864.6M | |
| Change In Cash | (217M) | (10M) | (451M) | 637M | 732.6M | 769.2M | |
| Investments | (2.1B) | (2.1B) | (2.7B) | (3.1B) | (2.8B) | (2.7B) | |
| Net Borrowings | 341M | 482M | 544M | 2.0B | 2.3B | 2.4B | |
| Change To Netincome | (44M) | (729M) | 269M | 318M | 365.7M | 384.0M |
Hydro One Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hydro One or Electric Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hydro One's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hydro stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.13 | |
β | Beta against Dow Jones | -0.16 | |
σ | Overall volatility | 0.73 | |
Ir | Information ratio | 0.07 |
Hydro One Volatility Alert
Hydro One exhibits relatively low volatility with skewness of -0.02 and kurtosis of -0.95. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hydro One's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hydro One's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Hydro One Fundamentals Vs Peers
Comparing Hydro One's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hydro One's direct or indirect competition across all of the common fundamentals between Hydro One and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hydro One or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hydro One's fundamental indicators could also be used in its relative valuation, which is a method of valuing Hydro One by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Hydro One to competition |
| Fundamentals | Hydro One | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0368 | -0.14 |
| Profit Margin | 0.15 % | (1.27) % |
| Operating Margin | 0.28 % | (5.51) % |
| Current Valuation | 51.04 B | 16.62 B |
| Shares Outstanding | 599.78 M | 571.82 M |
| Shares Owned By Insiders | 47.09 % | 10.09 % |
| Shares Owned By Institutions | 21.68 % | 39.21 % |
| Number Of Shares Shorted | 5.02 M | 4.71 M |
| Price To Earning | 15.93 X | 28.72 X |
| Price To Book | 2.59 X | 9.51 X |
| Price To Sales | 3.63 X | 11.42 X |
| Revenue | 8.48 B | 9.43 B |
| Gross Profit | 3.29 B | 27.38 B |
| EBITDA | 3.06 B | 3.9 B |
| Net Income | 1.16 B | 570.98 M |
| Cash And Equivalents | 716 M | 2.7 B |
| Cash Per Share | 0.06 X | 5.01 X |
| Total Debt | 17.73 B | 5.32 B |
| Debt To Equity | 130.00 % | 48.70 % |
| Current Ratio | 0.41 X | 2.16 X |
| Book Value Per Share | 21.03 X | 1.93 K |
| Cash Flow From Operations | 2.53 B | 971.22 M |
| Short Ratio | 5.64 X | 4.00 X |
| Earnings Per Share | 2.14 X | 3.12 X |
| Price To Earnings To Growth | 2.98 X | 4.89 X |
| Target Price | 52.14 | |
| Number Of Employees | 7.26 K | 18.84 K |
| Beta | 0.32 | -0.15 |
| Market Capitalization | 32.22 B | 19.03 B |
| Total Asset | 36.68 B | 29.47 B |
| Retained Earnings | 6.36 B | 9.33 B |
| Working Capital | (1.38 B) | 1.48 B |
Hydro One Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hydro . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Hydro One Buy or Sell Advice
When is the right time to buy or sell Hydro One? Buying financial instruments such as Hydro Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Hydro One in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Hydro Stock
Hydro One financial ratios help investors to determine whether Hydro Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Hydro with respect to the benefits of owning Hydro One security.