Hydro One Price To Book vs. Profit Margin
| H Stock | CAD 45.37 0.57 1.24% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.44 | 0.3618 |
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| Operating Profit Margin | 0.17 | 0.2348 |
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| Pretax Profit Margin | 0.11 | 0.1622 |
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For Hydro One profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hydro One to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hydro One utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hydro One's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hydro One over time as well as its relative position and ranking within its peers.
Hydro |
Hydro One Profit Margin vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hydro One's current stock value. Our valuation model uses many indicators to compare Hydro One value to that of its competitors to determine the firm's financial worth. Hydro One is one of the top stocks in price to book category among its peers. It is rated # 3 in profit margin category among its peers fabricating about 0.06 of Profit Margin per Price To Book. The ratio of Price To Book to Profit Margin for Hydro One is roughly 16.77 . At this time, Hydro One's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hydro One by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hydro One's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Hydro Profit Margin vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Hydro One |
| = | 2.28 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Hydro One |
| = | 0.14 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Hydro Profit Margin Comparison
Hydro One is currently under evaluation in profit margin category among its peers.
Hydro One Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hydro One, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hydro One will eventually generate negative long term returns. The profitability progress is the general direction of Hydro One's change in net profit over the period of time. It can combine multiple indicators of Hydro One, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3 M | -3.1 M | |
| Operating Income | 2.8 B | 1.5 B | |
| Income Before Tax | 1.3 B | 927.5 M | |
| Total Other Income Expense Net | -1.6 B | -1.5 B | |
| Net Income | 1.1 B | 788.6 M | |
| Income Tax Expense | 178 M | 100.6 M | |
| Net Income From Continuing Ops | 1.1 B | 934.9 M | |
| Net Income Applicable To Common Shares | 1.2 B | 886.5 M | |
| Interest Income | 12 M | 11.4 M | |
| Net Interest Income | -570 M | -598.5 M | |
| Change To Netincome | 365.7 M | 384 M | |
| Net Income Per Share | 1.81 | 1.72 | |
| Income Quality | 2.22 | 2.33 | |
| Net Income Per E B T | 0.85 | 0.66 |
Hydro Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hydro One. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hydro One position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hydro One's important profitability drivers and their relationship over time.
Use Hydro One in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hydro One position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hydro One will appreciate offsetting losses from the drop in the long position's value.Hydro One Pair Trading
Hydro One Pair Trading Analysis
The ability to find closely correlated positions to Hydro One could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hydro One when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hydro One - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hydro One to buy it.
The correlation of Hydro One is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hydro One moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hydro One moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hydro One can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hydro One position
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?
Run Construction Thematic Idea Now
Construction
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
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Other Information on Investing in Hydro Stock
To fully project Hydro One's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hydro One at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hydro One's income statement, its balance sheet, and the statement of cash flows.