HTO Stock Analysis: H2O America | NASDAQ

Water Distribution, Wastewater Treatment, Water Purification, Land Holdings

Total Rating 53

Safety 67

Buy Signal 0.32

Utilities - Regulated Water
Industry Rotation: +2.9

Market Cap: 2.64B
Avg Turnover: 22.4M

Risk 3d forecast

Volatility23.7%

VaR 5^th Pctl4.08%

VaR vs Median4.48%

Reward TTM

Sharpe Ratio1.17

Rel. Str. IBD74.6

Rel. Str. Peer Group94

Character TTM

Beta-0.283

Beta Downside-0.209

Hurst Exponent0.411

Drawdowns 3y

Max DD32.44%

CAGR/Max DD0.11

CAGR/Mean DD0.22

EPS (Earnings per Share)

EPS CAGR: 3.07%
EPS Trend: 43.3%

Last SUE: 0.27
Qual. Beats: 0

Revenue

Rev. CAGR: 9.04%
Rev. Trend: 98.5%

Last SUE: -0.36
Qual. Beats: 0

Warnings

Strong Share Dilution

High Debt While Negative Cash Flow

Below Avwap Earnings

Tailwinds

Shakeout

Confidence

Seasonality 11.6 years of data

Jan -4.7% 9

Feb -4.4% 20

Mar -0.7% 13

Apr -0.5% 19

May +1.0% 21

Jun -0.2% 19

Jul +4.2% 32

Aug -0.4% 2

Sep -2.0% 44

Oct +1.2% 0

Nov +2.3% 44

Dec -0.0% 10

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: HTO H2O America

H2O America (NASDAQ: HTO) is a U.S. water utility holding company that provides water and wastewater services through its subsidiaries, including production, storage, purification, distribution, and both wholesale and retail sales. Its supply mix draws on groundwater wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Valley Water District. In addition to regulated utility operations, the company generates revenue from non-tariffed services such as water system operations, maintenance agreements, antenna site leases, sewer services, and a Linebacker protection plan for drinking water customers in Connecticut and Maine. It also holds undeveloped land in California and commercial parcels in Connecticut. The company was incorporated in 1985, is headquartered in San Jose, California, and was formerly known as SJW Group before rebranding to H2O America in May 2025.

As a regulated water utility, H2O America operates in a capital-intensive, state-regulated sector that typically functions as a natural monopoly under franchise or service-area agreements with municipalities, with rates and service standards overseen by state public utility commissions. Demand is generally stable because water service is essential, and revenue growth is driven primarily by rate cases, customer additions, and infrastructure investment rather than broader market cycles.

Headlines to Watch Out For

Connecticut Water merger synergies drive earnings growth
California and Connecticut rate case decisions shape returns
Infrastructure capex accelerates regulated rate base expansion

Piotroski VR-10 (Strict) 3.0

Net Income: 107.0m TTM > 0 and > 6% of Revenue
FCF/TA: -0.08 > 0.02 and ΔFCF/TA -3.17 > 1.0
NWC/Revenue: 14.31% < 20% (prev -14.43%; Δ 28.74% < -1%)
CFO/TA 0.05 > 3% & CFO 245.2m > Net Income 107.0m
Net Debt (1.79b) to EBITDA (314.2m): 5.69 < 3
Current Ratio: 1.67 > 1.5 & < 3
Outstanding Shares: last quarter (40.9m) vs 12m ago 17.32% < -2%
Gross Margin: 56.45% > 18% (prev 56.73%; Δ -0.27% > 0.5%)
Asset Turnover: 16.11% > 50% (prev 16.27%; Δ -0.16% > 0%)
Interest Coverage Ratio: 2.62 > 6 (EBIT TTM 191.5m / Interest Expense TTM 73.0m)

Altman Z'' 1.29

A: 0.02 (Total Current Assets 296.4m - Total Current Liabilities 177.8m) / Total Assets 5.44b
B: 0.11 (Retained Earnings 592.3m / Total Assets 5.44b)
C: 0.04 (EBIT TTM 191.5m / Avg Total Assets 5.14b)
D: 0.51 (Book Value of Equity 1.84b / Total Liabilities 3.59b)
Altman-Z'' = 1.29 = BB

Beneish M -3.09

DSRI: 0.96 (Receivables 153.5m/152.4m, Revenue 828.5m/788.7m)
GMI: 1.00 (GM 56.73% / 56.45%)
AQI: 0.88 (AQ_t 0.19 / AQ_t-1 0.22)
SGI: 1.05 (Revenue 828.5m / 788.7m)
TATA: -0.03 (NI 107.0m - CFO 245.2m) / TA 5.44b)
Beneish M = -3.09 (Cap -4..+1) = AA

What is the price of HTO shares?

As of September 21, 2026, the stock is trading at USD 62.67 with a total of 1,575,410 shares traded. Over the past week, the price has changed by +0.02%, over one month by -1.00%, over three months by +11.33% and over the past year by +32.27%.

Current recommended Stop Loss: 60.90 (which is 2.8% or 1.4 ATR below the current price).

Is HTO a buy, sell or hold?

H2O America has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy HTO.

StrongBuy: 3
Buy: 0
Hold: 2
Sell: 0
StrongSell: 0

What are the forecasts/targets for the HTO price?

Analysts Target Price	67.1	7.1%

H2O America (HTO) - Fundamental Data Overview as of 20 September 2026

Market Cap USD = 2.64b (2.64b USD * 1.0 USD.USD)
P/E Trailing = 22.5914
P/E Forward = 23.753
P/S = 3.1843
P/B = 1.4598
P/EG = 2.6838
Revenue TTM = 828.5m USD
EBIT TTM = 191.5m USD
EBITDA TTM = 314.2m USD
Long Term Debt = 1.88b USD (from longTermDebt, last quarter)
Short Term Debt = 10.0m USD (from shortTermDebt, last quarter)
Debt = 1.89b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.79b USD (calculated: Debt 1.89b - CCE 104.1m)
Enterprise Value = 4.43b USD (2.64b + Debt 1.89b - CCE 104.1m)
Interest Coverage Ratio = 2.62 (Ebit TTM 191.5m / Interest Expense TTM 73.0m)
EV/FCF = -10.34x (Enterprise Value 4.43b / FCF TTM -428.1m)
FCF Yield = -9.67% (FCF TTM -428.1m / Enterprise Value 4.43b)
FCF Margin = -51.67% (FCF TTM -428.1m / Revenue TTM 828.5m)
Net Margin = 12.91% (Net Income TTM 107.0m / Revenue TTM 828.5m)
Gross Margin = 56.45% ((Revenue TTM 828.5m - Cost of Revenue TTM 360.8m) / Revenue TTM)
Gross Margin QoQ = 59.39% (prev 63.76%)
Tobins Q-Ratio = 0.81 (Enterprise Value 4.43b / Total Assets 5.44b)
Interest Expense / Debt = 3.86% (Interest Expense 73.0m / Debt 1.89b)
Taxrate = 9.77% (11.6m / 118.5m)
NOPAT = 172.8m (EBIT 191.5m * (1 - 9.77%))
Current Ratio = 1.67 (Total Current Assets 296.4m / Total Current Liabilities 177.8m)
Debt / Equity = 1.03 (Debt 1.89b / totalStockholderEquity, last quarter 1.84b)
Debt / EBITDA = 5.69 (Net Debt 1.79b / EBITDA 314.2m)
Debt / FCF = -4.18 (negative FCF - burning cash) (Net Debt 1.79b / FCF TTM -428.1m)
Total Stockholder Equity = 1.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.08% (Net Income 107.0m / Total Assets 5.44b)
RoE = 6.35% (Net Income TTM 107.0m / Total Stockholder Equity 1.69b)
RoCE = 5.37% (EBIT 191.5m / Capital Employed (Equity 1.69b + L.T.Debt 1.88b))
RoIC = 3.31% (NOPAT 172.8m / Invested Capital 5.23b)
WACC = 4.36% (E(2.64b)/V(4.53b) * Re(4.99%) + D(1.89b)/V(4.53b) * Rd(3.86%) * (1-Tc(0.10)))
Discount Rate = 4.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.08 | Cagr: 11.30%
[DCF] Fair Price = unknown (Cash Flow -428.1m)
EPS Correlation: 43.31 | EPS CAGR: 3.07% | SUE: 0.27 | # QB: 0
Revenue Correlation: 98.45 | Revenue CAGR: 9.04% | SUE: -0.36 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.22 | Chg30d=+10.17% | Revisions=+29% | Analysts=3
EPS current Year (2026-12-31): EPS=2.73 | Chg30d=-0.43% | Revisions=+44% | GrowthEPS=-8.5% | GrowthRev=+8.6%
EPS next Year (2027-12-31): EPS=2.71 | Chg30d=-1.81% | Revisions=-17% | GrowthEPS=-0.9% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: +31% (up=9, down=4)