Hydro One Ltd

HRNNF

Hydro One Limited operates as an electricity transmission and distribution company in Ontario. It operates through three segments: Transmission, Distribution, and Other. The company owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 126,000 circuit kilometers primary low-voltage distribution lines.

About the company

Country: CanadaPrice: $40.04Market Cap: $24.0B

Investment snapshot

24%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

2 / 10

NEUTRAL / FAIL

Median fair value

$20.67

-48.4% vs price

Models with upside

0 / 17

Positive margin of safety

Key risk

All 12 investors flag HRNNF's debt & leverage

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	FAIL · Rank #1528 (Top 49.3%)	PASS	FAIL	PASS	FAIL	FAIL	FAIL	PASS	FAIL	PASS	NEUTRAL	FAIL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)			N/A		N/A		N/A			N/A	N/A		N/A	N/A	N/A	N/A	N/A
Margin of Safety	-68.6%	-106.3%	N/A	-107.4%	N/A	-84.8%	N/A	-1554.5%	-83.8%	N/A	N/A	-93.7%	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-10-01–2026-11-01 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-10-01–2026-11-01 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-13 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-10-01–2026-11-01 Latest source filing: 2026-02-13 Score computed: 2026-11-14

Where It Passes

Where It Falls Short

Debt & Leverage0% pass✗ 15▾
All 12 investors flag HRNNF's debt & leverage
LT Debt vs Net Current AssetsLT Debt $13.2B vs NCA $-1.0B
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 1.50, IC: 0.2x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity1.50
✗Lynch< 0.33
Cash - Long-term Debt$-12.8B
✗LynchPositive preferred
LT Debt / Total Assets Change44.52% -> 45.61%
✗PiotroskiDecreased YoY
Current Assets / Current Liabilities0.61
✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity1.50
✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
Debt Levels1.50
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=0.2x, D/EBITDA=5.9x
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity1.50
✗Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-1.5036; #3595/4210 (top 85.4%)
✗AsnessTop 30% of eligible cross-section
Efficiency0% pass✓ 1✗ 10▾
No clean pass — all 8 investors flag at least one efficiency criterion
Current Ratio0.61
✗Graham>= 2.0
ROIC (3-5 yr avg)5.5%
✗Buffett> 10%
ROIC - WACC-4.5%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)7.4%
✗Greenblatt> 25%
Current Ratio Change YoY0.60 -> 0.61
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.23x -> 0.23x
✗PiotroskiImproved YoY
Current Assets / Current Liabilities0.61
✗Dreman> 1.5
Return on Invested Capital5.6%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=5.4%; FY2024: ROIC=5.3%; FY2025: ROIC=5.6%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC2.3% (RR=42% x ROIC=5.6%)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/5 years above 12% (latest 5.6%)
✗SleepROIC > 12% in a majority of years
Valuation models0% pass✗ 7▾
HRNNF overvalued: all 7 models price fair value below $40.04 (median $20.67)
Graham fair value$23.75
✗Graham-68.6% margin vs $40.04
Buffett fair value$19.41
✗Buffett-106.3% margin vs $40.04
Greenblatt fair value$19.31
✗Greenblatt-107.4% margin vs $40.04
Dreman fair value$21.67
✗Dreman-84.8% margin vs $40.04
Pabrai fair value$2.42
✗Pabrai-1554.5% margin vs $40.04
Akre fair value$21.78
✗Akre-83.8% margin vs $40.04
Templeton fair value$20.67
✗Templeton-93.7% margin vs $40.04
Valuation8% pass✓ 2✗ 26▾
12 of 13 flag HRNNF's valuation — Graham, Lynch, Greenblatt +9 more
Price / 3-yr avg EPS27.7x
✗Graham<= 15x
Price-to-Book Ratio2.6x
✗Graham<= 1.5x
P/E x P/B72.10
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)P/E 24.6x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value4.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=4.4%, ROC=7.4%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS24.6x
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)12.2x
✗Dreman< 8x
Price / Book Value per Share2.6x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=24.6x, OE Yield=-2.0%
✓MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=24.6x, FCF Yield=-0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=24.6x, P/B=2.6x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-84.7% (IV=$21.67 vs Price=$40.04)
✗Marks>= 20% below intrinsic value
Price / FCF per ShareN/A (negative FCF)
✗Ackman<= 25
Price vs. Trailing Low
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization+4.10%; #1976/6340 (top 31.2%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.3844; #3340/6449 (top 51.8%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS24.6x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E-0.18
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share2.83x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+11.4%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.2748; #3445/5247 (top 65.7%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization-0.84%; #2648/4519 (top 58.6%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date
✗OshaughnessyTop 10% of eligible cross-section
Profitability13% pass✓ 12✗ 23▾
14 of 16 flag HRNNF's profitability — Graham, Buffett, Lynch +11 more
Positive EPS (10 years)8/10 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)8/10 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)9.6%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)24.8% (latest)
✓BuffettStable or rising over 10 years
Free Cash Flow Proxy$985.1M
✓BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)P/E 24.6x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-6.8%
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE10.7%
✗Lynch> 15%
EBIT / Enterprise Value4.4%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=4.4%, ROC=7.4%
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets3.40%
✓PiotroskiROA > 0
ROA Change YoY3.18% -> 3.40% (delta: +0.22%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=6.79%, ROA=3.40%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY51.2% -> 50.4%
✗PiotroskiImproved YoY
Pre-Tax Income / Revenue17.3%
✓Dreman>= 8%
Net Income / Shareholders' Equity10.7%
✗Dreman> 12%
Margin of SafetyP/E=24.6x, P/B=2.6x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity9.9% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value-84.7% (IV=$21.67 vs Price=$40.04)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency8/9 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue24.8%
✓Ackman>= 15%
Net Income / Shareholders Equity10.7%
✗Ackman>= 15%
5-Year EPS CAGR-6.8% CAGR over 5 years
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend23.5% (2023) -> 24.8% (2025)
✓TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 53.4% -> 50.4%, operating margin 23.5% -> 24.8%
✓SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization+4.10%; #1976/6340 (top 31.2%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+11.48%; #2705/3702 (top 73.1%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity+10.67%; #1707/5226 (top 32.7%)
✗AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0009; #57/5884 (top 1.0%)
✓AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR-6.8% over 5 years
✗Neff7%-20% annualized
Positive Diluted-EPS Years8/9 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)
Growth13% pass✓ 4✗ 9▾
7 of 8 flag HRNNF's growth — Graham, Lynch, Dreman +4 more
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)P/E 24.6x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-6.8%
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthN/A (no inventory)
✓LynchInventory growth < Revenue growth
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency8/9 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth3.3%
✗Ackman>= 5%
Positive EPS Growth Frequency3/5 years with positive EPS growth
✓AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR-6.8% CAGR over 5 years
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 53.4% -> 50.4%, operating margin 23.5% -> 24.8%
✓SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR2.9%
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR-6.8% over 5 years
✗Neff7%-20% annualized
Verdicts27% pass✓ 4✗ 11▾
Split decision: 10 FAIL · 4 PASS · 2 NEUTRAL
Overall verdict
✗GrahamFAIL (1/9)✗BuffettFAIL (2/9)✗LynchFAIL (1/7)✗GreenblattRank #1528✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
Cash Flow40% pass✓ 5✗ 7▾
6 of 10 flag HRNNF's cash flow — Lynch, Dreman, Pabrai +3 more
Free Cash Flow Proxy$985.1M
✓BuffettPositive and growing
FCF Positive and Growing$-200.8M
✗LynchPositive and growing
Operating Cash Flow$2.0B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=6.79%, ROA=3.40%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)12.2x
✗Dreman< 8x
P/E or FCF YieldP/E=24.6x, FCF Yield=-0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive7/9 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap-0.8%
✗Ackman>= 4%
Price / FCF per ShareN/A (negative FCF)
✗Ackman<= 25
Positive Operating Cash Flow frequency9/9 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$-200.8M
✗Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization-0.84%; #2648/4519 (top 58.6%)
✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Utilities

SIC Sector: Electric, Gas & Sanitary Services

Size: Large Cap($24.0B)

Revenue: $6.6B+11.7% YoY

Net Income: $985.1M+21.3% YoY

Financial Snapshot

Operating Margin24.8%

Return on Equity10.7%

Debt / Equity1.50

Current Ratio0.61

EPS (Diluted)$1.63+21.7% 1y

Shares Retired−0.1% / −0.1% 2y

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Shareholder Return

Fiscal 2025

Issued 0.1% of shares last year, 0.1% issued over two.

Buybacks: —
Dividends: $575.4M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22

2.2% = 2.3% + −0.0%

FY23

5.9% = 5.9% + 0.0%

FY24

−2.2% = −1.8% + −0.4%

FY25

21.7% = 21.3% + 0.3%

Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

Metric	FY 2025 Sources 40-F · 2026-02-13	FY 2024 Sources 40-F · 2025-02-20	FY 2023 Sources 40-F · 2024-02-13	FY 2022 Sources 40-F · 2023-02-14	FY 2021 Sources 40-F · 2022-02-25
Market Cap	$24.0Bcurrent	$22.0Best.	--	--	--
Revenue	$6.6B↑12%	$5.9B	$5.9B↑3%	$5.7B↑1%	$5.7B
Operating Income	$1.6B↑19%	$1.4B↓2%	$1.4B↑3%	$1.4B↑7%	$1.3B
Net Income	$985.1M↑21%	$811.9M↓2%	$826.9M↑6%	$780.7M↑2%	$763.5M
EPS (Diluted)	$1.63↑22%	$1.34↓2%	$1.37↑6%	$1.29↑2%	$1.26
Gross Margin	50.4%↓2%	51.2%↓4%	53.4%↑3%	52.1%↑3%	50.5%
Operating Margin	24.8%↑7%	23.2%↓1%	23.5%	23.5%↑6%	22.3%
ROE	10.7%↑11%	9.6%↑3%	9.4%	9.4%↑5%	8.9%
Total Debt	$13.9B↑14%	$12.2B↑5%	$11.6B↑15%	$10.2B↓5%	$10.7B
Shareholders' Equity	$9.2B↑10%	$8.4B↓5%	$8.8B↑6%	$8.3B↓2%	$8.5B
Current Ratio	0.61	0.60↑21%	0.50↓2%	0.51↓17%	0.61
Debt / Equity	1.50↑4%	1.45↑10%	1.32↑8%	1.22↓3%	1.25
Operating Cash Flow	$2.0B↑11%	$1.8B↓3%	$1.8B↑9%	$1.7B↓1%	$1.7B
Free Cash Flow	-$200.8M↓55%	-$129.6M↓356%	$50.6M↓77%	$216.9M↑25%	$173.4M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Utilities

HRNNF vs Peers — Financial Grading

Revenue$6.6BBottom 25%

Net Income$985.1MBottom 25%

ROE10.7%Median

D/E1.50Top 25%

Op. Margin24.8%Median

Curr. Ratio0.61Bottom 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
SOUTHERN COSO	$109.0B	$93.59	$29.6B	$4.3B	12.1%	2.00	24.7%	0.65	2/9	2/9	2/7	0/3	F-Score 5	3/11
AMERICAN ELECTRIC POWER CO INCAEP	$70.3B	$129.18	$21.9B	$3.7B	11.9%	1.52	24.3%	0.45	4/9	3/9	2/7	0/3	F-Score 5	3/11
Cheniere Energy, Inc.LNG	$63.0B	$308.75	$20.0B	$5.3B	67.3%	2.88	45.6%	0.94	2/9	4/9	4/7	0/3	F-Score 8	3/11
DOMINION ENERGY, INCD	$59.5B	$67.66	$16.5B	$3.0B	10.3%	1.60	26.7%	0.77	2/9	0/9	1/7	0/3	F-Score 6	3/11
ATMOS ENERGY CORPATO	$29.8B	$176.30	$4.7B	$1.2B	8.8%	0.66	33.2%	0.77	3/9	3/9	2/7	0/3	F-Score 6	3/11
EVERSOURCE ENERGYES	$27.0B	$71.73	$13.5B	$1.7B	10.5%	1.75	22.1%	0.65	2/9	2/9	2/7	0/3	F-Score 6	4/11
PPL CorpPPL	$26.9B	$35.67	$9.0B	$1.2B	7.9%	1.27	23.5%	0.86	2/9	0/9	0/7	0/3	F-Score 5	2/11
ALLIANT ENERGY CORPLNT	$19.0B	$73.43	$4.4B	$810.0M	11.0%	1.64	23.5%	0.80	2/9	2/9	2/7	0/3	F-Score 6	2/11