Hydro One H.TO
Hydro One Limited is the largest electricity transmission and distribution company in Ontario (Canada), operating as a regulated monopoly with revenues based on regulator-approved tariffs. Hydro One shows solid growth (revenue +11.4%, earnings +14.2%) and a sustainable dividend (payout 57.3%), but its high leverage (Net Debt/EBITDA 5.85) and demanding multiples (P/E 21.5) make it vulnerable to the rising rate environment, moderating its appeal despite regulatory stability.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Hydro One Limited is the largest electricity transmission and distribution company in Ontario (Canada), operating as a regulated monopoly with revenues based on regulator-approved tariffs. Hydro One shows solid growth (revenue +11.4%, earnings +14.2%) and a sustainable dividend (payout 57.3%), but its high leverage (Net Debt/EBITDA 5.85) and demanding multiples (P/E 21.5) make it vulnerable to the rising rate environment, moderating its appeal despite regulatory stability.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 3.7 |
| Valuation | 3.9 |
| Growth | 6.9 |
| Dividend | 7.1 |
| Momentum | 5.9 |
| Risk & Context | 8.6 |
OVERALL SCORE: 6.0/10
Context and risks
Moderate regulatory risk in Canada. As a regulated monopoly, Hydro One depends on Ontario Energy Board (OEB) tariff decisions; a 5.17% US 10-year yield environment and inflationary pressures could tighten tariff reviews, though no specific adverse regulatory event appears in the news.
News considered in the analysis
- Hydro One Ltd (HRNNF) (Q2 2026) Earnings Call Highlights: Net Income Surges 13. ... — Resultados del segundo trimestre con crecimiento del beneficio neto del 13%, consistente con el crecimiento de beneficios del 14.2% ya reflejado en las notas cuantitativas; refuerza la tendencia positiva pero no es información nueva material.
- Will New CEO, Board Changes and Durham Kawartha Line Shift Hydro One's (TSX:H) Narrative? — Cambio de CEO y de consejo: puede alterar la estrategia de asignación de capital y la relación con el regulador, pero el impacto en beneficios es incierto y moderado.
- How The Hydro One (TSX:H) Investment Story Is Shifting As Analyst Targets Converge Around CA$58 — Convergencia de objetivos de precio de los analistas en torno a CA$58, ligeramente por encima del precio actual; señal moderadamente positiva de consenso.
- Hydro One Ltd's Dividend Analysis — Análisis genérico de dividendo sin información nueva.
- Hydro One Q2 Earnings Call Highlights — Resumen de la llamada de resultados ya cubierto por la noticia anterior; sin información adicional.
Verdict: Hold; regulatory stability and asset base growth are positive, but leverage and rate sensitivity limit near-term upside potential.
Main risk: High leverage (Net Debt/EBITDA of 5.85) combined with the rise in 10-year Treasury yields makes debt refinancing more expensive and pressures the valuation of a long-duration utility like Hydro One.
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