Hydro One Price To Earning vs. Cash And Equivalents
| H Stock | CAD 45.79 0.01 0.02% |
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.
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Hydro One Cash And Equivalents vs. Price To Earning 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 rated # 4 in price to earning category among its peers. It is rated # 3 in cash and equivalents category among its peers creating about 33,270,559 of Cash And Equivalents per Price To Earning. 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 Cash And Equivalents vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Hydro One |
| = | 15.93 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Hydro One |
| = | 530 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Hydro Cash And Equivalents Comparison
Hydro One is currently under evaluation in cash and equivalents 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.
Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. Hydro One Limited was incorporated in 2015 and is headquartered in Toronto, Canada. HYDRO ONE operates under Utilities - Regulated Electric classification in Canada and is traded on Toronto Stock Exchange. It employs 5708 people.
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 Automobiles and Trucks Thematic Idea Now
Automobiles and Trucks
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks 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 Automobiles and Trucks 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.