Hydro One Revenue vs. Cash Flow From Operations
| H Stock | CAD 45.30 0.25 0.55% |
Total Revenue | First Reported 2009-03-31 | Previous Quarter 2.2 B | Current Value 2.1 B | Quarterly Volatility 263.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.44 | 0.3575 |
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| Operating Profit Margin | 0.17 | 0.21 |
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| Pretax Profit Margin | 0.11 | 0.1587 |
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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 Cash Flow From Operations vs. Revenue 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 # 2 in revenue category among its peers. It is rated # 3 in cash flow from operations category among its peers making about 0.30 of Cash Flow From Operations per Revenue. The ratio of Revenue to Cash Flow From Operations for Hydro One is roughly 3.35 . At this time, Hydro One's Total Revenue 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 Revenue vs. Competition
Hydro One is rated # 2 in revenue category among its peers. Market size based on revenue of Utilities industry is currently estimated at about 35.92 Billion. Hydro One totals roughly 8.48 Billion in revenue claiming about 24% of Utilities industry.
Hydro Cash Flow From Operations vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Hydro One |
| = | 8.48 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Hydro One |
| = | 2.53 B |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Hydro Cash Flow From Operations Comparison
Hydro One is currently under evaluation in cash flow from operations 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 | -3.5 M | -3.6 M | |
| Operating Income | 2.1 B | 1.5 B | |
| Income Before Tax | 1.3 B | 955.1 M | |
| Total Other Income Expense Net | -153 M | -160.7 M | |
| Net Income | 1.2 B | 812.8 M | |
| Income Tax Expense | 160.2 M | 100.6 M | |
| Net Income From Continuing Ops | 1.2 B | 963.8 M | |
| Net Income Applicable To Common Shares | 1.2 B | 886.5 M | |
| Interest Income | 24 M | 22.8 M | |
| Net Interest Income | -625 M | -656.2 M | |
| Change To Netincome | 365.7 M | 384 M | |
| Net Income Per Share | 1.93 | 1.83 | |
| Income Quality | 2.18 | 2.28 | |
| Net Income Per E B T | 0.86 | 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?
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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.