# H2O America (HTO) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Utilities / Water Utilities. Price $64.32, market value $2.7 billion.

## Valuation
- **P/E (trailing): 22.6×** (5-yr avg 23.5×, 3-yr avg 18.5×). H2O America trades at 22.6× trailing earnings, close to its own five-year average of 23.5×. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 23.7×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 13.63**. A PEG of 13.63 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 3.2×**. Each dollar of revenue is priced at 3.2×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.6×**. Enterprise value is 14.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Operating margin: 21.4%**. 21.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.7%**. 12.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.7%**. 6.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 4.1%**. Return on all capital, debt included, is 4.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 2.1%**. Each dollar of assets produces 2.1% of profit.

## Growth
- **Revenue growth (1 yr): 9.4%** (3-yr 11.1%/yr, 5-yr 8.0%/yr). Revenue grew 9.4% over the last year, against 8.0% a year compounded over five years.
- **EPS growth (1 yr): 1.7%** (3-yr 6.3%/yr, 5-yr 6.4%/yr). Earnings per share rose 1.7%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 1.23**. Debt is 1.23 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 6.0×**. It would take 6.0 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.73%** ($1.72 per share, trailing). H2O America yields 2.73%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 57%**. 57% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 5.6%/yr** (1-yr 5.0%). The dividend has grown 5.6% a year over five years.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover H2O America; the consensus is buy, with an average price target of $67.14 (+4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 32.0%** (YTD 33.4%, 3-mo 12.0%). The shares are up 32.0% over twelve months including dividends.
- **From 52-week high: -4.1%** (47.0% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): -0.22** (volatility 23%). Beta of -0.22 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HTO · Page: https://foliofundamentals.com/stocks/hto

Not investment advice.