H2O America (HTO) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

H2O America

NasdaqGS•Utilities•Utilities - Regulated Water

$62.67-0.41(-0.01%)Market closed

Market Cap

$2.62B

P/E

24.5x

P/S

3.2x

P/B

1.4x

H2O America, through its subsidiaries, provides water utility and other related services in the United States. The company engages in production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Valley Water District. It also offers non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services, sewer operations, and other water related services; and a Linebacker protection plan for public drinking water customers in Connecticut and Maine. In addition, the company provides water services; owns undeveloped land in California; and commercial properties and parcels of land in Connecticut. The company was formerly known as SJW Group and changed its name to H2O America in May 2025. H2O America was incorporated in 1985 and is headquartered in San Jose, California.

How this company scores

AverageMetricSide Score: 47/100

Strongest: Profitability (17/25); weakest: Cash & Earnings Quality (3/25).

Profitability17/25

Growth14/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality3/25

Strengths

Strong marginsImproving leverageConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 24.5x5y range 15.6x – 36.0x

Currently near its 20-quarter median.

P/S · 3.2x5y range 2.1x – 4.0x

Currently near its 20-quarter median.

P/B · 1.4x5y range 1.1x – 2.2x

Currently near its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Watch

Operating margins declined 7.5% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Cash Burn

Red Flag

The last 5 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Red Flag

Shares outstanding increased 27.2% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $2.62B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $828.50M
Q. Revenue: $210.47M
TTM EBITDA: $366.20M
TTM Op. Income: $177.95M
Q. Op. Income: $42.75M
TTM Net Income: $106.95M
Q. Net Income: $26.59M
EPS: $0.64
Shares Out.: $41.85M

$828.50M in TTM revenue grew 5.0% YoY, reaching $210.47M last quarter. TTM EBITDA of $366.20M and TTM operating income of $177.95M show growth is flowing through to the bottom line. TTM net income of $106.95M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 36.3%
Op. Margin: 20.3%
Net Margin: 12.6%

Op. margin of 20.3% is down 1.8% YoY — costs are rising relative to revenue. Net margin at 12.6% Over the past year, operating margin is down 8% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 24.5x
P/S Ratio: 3.2x
P/B Ratio: 1.4x

At 24.5x P/E, the stock trades within typical market levels. P/S of 3.2x and P/B of 1.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $5.44B
Cash: $104.10M
Long-Term Debt: $1.88B
Book Value: $1.84B
D/E Ratio: 1.0
Debt/EBITDA: 24.6

With $5.44B in assets and $1.88B in long-term debt, D/E is 1.0and book value is $1.84B — moderate leverage. Over the past year, debt/equity is down 12% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $60.74M
TTM Free Cash Flow: $-272.56M
FCF Margin: -32.9%
FCF / Net Income: -2.5

TTM FCF of $-272.56M on $60.74M in operating cash flow. The FCF / Net Income ratio of -2.5x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 1467% — an improving trend.