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Highlights:
- Hydro One's market capitalization stands at C$27.03 billion.
- Key financial metrics include a price-to-earnings ratio of 24.12 and a price-to-earnings-growth ratio of 3.17.
- The company shows a relatively low debt-to-equity ratio of 137.11.
Hydro One (TSX:H) operates within the utilities sector, providing electricity transmission and distribution services across Canada. As a significant player in the industry, the company is essential for maintaining the infrastructure that powers households and businesses. Hydro One is involved in delivering electricity to its customers, ensuring reliable service while managing operations in a regulated environment.
Financial Metrics
The company's market capitalization is valued at approximately C$27.03 billion, a solid figure reflecting the overall value placed on Hydro One by the market. This market size places it among larger entities within the Canadian utilities sector. Hydro One’s price-to-earnings ratio sits at 24.12, suggesting how much investors are willing to pay for each dollar of earnings. This figure provides insight into how the company is valued relative to its profitability. Additionally, its price-to-earnings-growth ratio of 3.17 reflects a relatively higher growth expectation, though it is worth noting that the company’s P/E ratio can influence market sentiment.
Debt and Liquidity
Hydro One’s debt-to-equity ratio is another critical financial aspect, with a value of 137.11. This ratio indicates how much debt the company uses to finance its operations compared to equity. It reveals the company’s financial leverage and potential risks. With a debt-to-equity ratio on the higher side, it suggests a reliance on borrowed funds, which could be concerning depending on market conditions. Hydro One also maintains a current ratio of 0.40, indicating its ability to cover short-term liabilities with short-term assets. In contrast, the company’s quick ratio stands at 0.30, offering further details about liquidity and the immediate ability to meet financial obligations.
Price Movements and Historical Trends
Hydro One’s share price has experienced fluctuations over time, with a fifty-day moving average price of C$44.61 and a 200-day moving average price of C$44.34. The fifty-day moving average is a commonly used indicator of short-term trends, while the 200-day moving average offers insight into long-term price movements. These figures suggest that Hydro One has shown relatively stable pricing with modest variation over time.
Market Sentiment and Beta
The company’s beta value of 0.34 reflects its relative stability compared to the broader market. A beta below one suggests that the stock tends to move less dramatically than the overall market. This lower volatility can be appealing for those who seek more predictable, less risky investments within the utility sector. While Hydro One is not as sensitive to broader market movements, it is still affected by industry-specific dynamics and changes in market conditions.
