HTO Stock Analysis: H2O America | NASDAQ
Utilities - Regulated Water | NASDAQ, USA | Market Cap: 2.689m USD | 12M Return: 26.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 29.9M
EPS Trend: 43.3%
Qual. Beats: 0
Rev. Trend: 98.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 years of data
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.
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.
- Connecticut Water merger synergies drive earnings growth
- California and Connecticut rate case decisions shape returns
- Infrastructure capex accelerates regulated rate base expansion
| Net Income: 107.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.09 > 0.02 and ΔFCF/TA -4.30 > 1.0 |
| NWC/Revenue: 1.54% < 20% (prev -14.43%; Δ 15.96% < -1%) |
| CFO/TA 0.05 > 3% & CFO 245.3m > Net Income 107.0m |
| Net Debt (1.85b) to EBITDA (461.6m): 4.02 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (40.9m) vs 12m ago 17.32% < -2% |
| Gross Margin: 48.52% > 18% (prev 56.73%; Δ -8.21% > 0.5%) |
| Asset Turnover: 16.58% > 50% (prev 16.27%; Δ 0.30% > 0%) |
| Interest Coverage Ratio: 4.64 > 6 (EBIT TTM 338.9m / Interest Expense TTM 73.0m) |
| A: 0.00 (Total Current Assets 190.6m - Total Current Liabilities 177.8m) / Total Assets 5.15b |
| B: 0.12 (Retained Earnings 592.3m / Total Assets 5.15b) |
| C: 0.07 (EBIT TTM 338.9m / Avg Total Assets 5.00b) |
| D: 3.72 (Book Value of Equity 1.84b / Total Liabilities 495.7m) |
| Altman-Z'' = 4.75 = AA |
As of August 04, 2026, the stock is trading at USD 61.08 with a total of 246,360 shares traded. Over the past week, the price has changed by -3.81%, over one month by -0.21%, over three months by +7.37% and over the past year by +26.88%.
Current recommended Stop Loss: 57.40 (which is 6% or 2.4 ATR below the current price).
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
| Analysts Target Price | 65.4 | 7.1% |
P/E Trailing = 21.7061
P/E Forward = 25.0
P/S = 3.2457
P/B = 1.4485
P/EG = 2.6838
Revenue TTM = 828.5m USD
EBIT TTM = 338.9m USD
EBITDA TTM = 461.6m USD
Long Term Debt = 1.87b USD (from longTermDebt, last fiscal year)
Short Term Debt = 8.65m USD (from shortTermDebt, last quarter)
Debt = 1.88b USD (corrected: LT Debt 1.87b + ST Debt 8.65m)
Net Debt = 1.85b USD (calculated: Debt 1.88b - CCE 20.7m)
Enterprise Value = 4.54b USD (2.69b + Debt 1.88b - CCE 20.7m)
Interest Coverage Ratio = 4.64 (Ebit TTM 338.9m / Interest Expense TTM 73.0m)
EV/FCF = -10.38x (Enterprise Value 4.54b / FCF TTM -437.8m)
FCF Yield = -9.64% (FCF TTM -437.8m / Enterprise Value 4.54b)
FCF Margin = -52.84% (FCF TTM -437.8m / Revenue TTM 828.5m)
Net Margin = 12.91% (Net Income TTM 107.0m / Revenue TTM 828.5m)
Gross Margin = 48.52% ((Revenue TTM 828.5m - Cost of Revenue TTM 426.5m) / Revenue TTM)
Gross Margin QoQ = none% (prev 63.76%)
Tobins Q-Ratio = 0.88 (Enterprise Value 4.54b / Total Assets 5.15b)
Interest Expense / Debt = 3.89% (Interest Expense 73.0m / Debt 1.88b)
Taxrate = 10.75% (12.4m / 114.9m)
NOPAT = 302.5m (EBIT 338.9m * (1 - 10.75%))
Current Ratio = 1.07 (Total Current Assets 190.6m / Total Current Liabilities 177.8m)
Debt / Equity = 1.02 (Debt 1.88b / totalStockholderEquity, last quarter 1.84b)
Debt / EBITDA = 4.02 (Net Debt 1.85b / EBITDA 461.6m)
Debt / FCF = -4.24 (negative FCF - burning cash) (Net Debt 1.85b / FCF TTM -437.8m)
Total Stockholder Equity = 1.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.14% (Net Income 107.0m / Total Assets 5.15b)
RoE = 6.35% (Net Income TTM 107.0m / Total Stockholder Equity 1.69b)
RoCE = 9.54% (EBIT 338.9m / Capital Employed (Equity 1.69b + L.T.Debt 1.87b))
RoIC = 6.10% (NOPAT 302.5m / Invested Capital 4.96b)
WACC = 4.37% (E(2.69b)/V(4.56b) * Re(5.0%) + D(1.88b)/V(4.56b) * Rd(3.89%) * (1-Tc(0.11)))
Discount Rate = 5.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.08 | Cagr: 11.30%
[DCF] Fair Price = unknown (Cash Flow -437.8m)
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=1.09 | Chg30d=+0.39% | Revisions=-25% | Analysts=3
EPS current Year (2026-12-31): EPS=2.73 | Chg30d=-0.35% | Revisions=-25% | GrowthEPS=-8.5% | GrowthRev=+6.9%
EPS next Year (2027-12-31): EPS=2.75 | Chg30d=-0.25% | Revisions=-25% | GrowthEPS=+0.4% | GrowthRev=+6.9%
[Analyst] Revisions Ratio: -50% (up=0, down=3)