Hydro One Limited (H.TO) stock analysis
In our weekly check, Hydro One Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3.
About Hydro One Limited
Hydro One Limited is an Utilities company (Regulated Electric) based in Canada, listed on TSX as H.TO.
What our checks show for H.TO
Red flags
- Net debt is 5.7x a year of EBITDA (debt/equity 1.55). That limits room in a downturn and raises refinancing risk.
- Free cash flow is negative (-2.6% of revenue): the business spends more cash than it brings in.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Operating profit covers interest only 3.3 times: a weak year could make the payments hard.
- Analysts expect only about 1.5% a year of growth in revenue.
- Return on capital (ROCE) is only 6.1%.
Strengths
- The net margin rose by 1.5 points over 5 years, to 14.9%.
- The gross margin is 27.3% and has risen by 5 points: pricing power is holding.
- Operating cash flow is 1.88x net profit: the profit arrives as real cash.
- Earnings per share grew 10.5% a year over the last 3 years.
- Net profit grew 10.5% a year over the last 3 years.
- A large company: market value $23.34 billion.
Next earnings report: 2026-11-10
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Questions
What grade does Hydro One Limited (H.TO) have?
In our weekly check, Hydro One Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of H.TO stock?
This week's biggest flags for Hydro One Limited: High debt, Weak free cash flow, Heavy stock pay. In total 6 of 25 checks show a warning or a red flag.
What does Hydro One Limited do?
Hydro One Limited is an Utilities company (Regulated Electric) based in Canada, listed on TSX as H.TO.
When does Hydro One Limited report earnings next?
The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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