Hydro One Limited operates as an electricity transmission and distribution company in Ontario. While it boasts a solid EBITDA margin of 39.1%, its low return on equity (ROE) of 2.8% raises concerns about profitability. Additionally, the current and quick ratios below 1 indicate potential liquidity issues. Despite decent gross and net margins, the high debt-to-equity ratio of 1.54 suggests significant leverage, which could impact financial stability. Overall, while Hydro One has strong operational metrics, its financial health and leverage warrant caution.
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Debt of $20.0B is 31.1x the company's cash position of $643.0M.
Gross margin expanded by 6.2 percentage points, indicating improved pricing power or cost efficiency.
Both gross margin (+6.2pp) and operating margin (+0.6pp) are expanding simultaneously, indicating the company is scaling profitably.
Excellent operating cash flow margin of 27.9% indicates high-quality earnings.
Operating cash flow of $2660.0M exceeds net income by 88%, indicating high-quality earnings with strong cash conversion.
Strong free cash flow margin of 27.9% provides substantial resources for dividends, buybacks, or reinvestment.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2026-Q2 (June 30, 2026)