|HTO Overview
HTO

H2O AMERICA

Utilities • CIK: 0000766829

Loading...

Market Cap
$1.71B
P/E (TTM)
16.8x
Rev Growth (TTM)
+7.0%
Net Margin (TTM)
12.8%
FCF Yield (TTM)
14.3%
FCF Margin (TTM)
30.6%

LATEST EARNINGS

FY 2025
9 days ago
View source
Revenue
$194.19B
-1.8%
Net Income
$16.22B
-29.2%
EPS
$0.45
-33.8%
Operating
17.1% -5.0%
Net
8.3% -3.2%
  • Adjusted diluted EPS of $2.99 came in near the top of the upwardly narrowed guidance range of $2.95 to $3.00.
  • Operating revenue increased 7% to $800.6 million, driven by rate increases and new customers.
  • Increased the five-year capital expenditures budget by 31% to $2.7 billion to fund infrastructure replacement, PFAS remediation, and system investments.
  • Raised long-term adjusted diluted EPS CAGR target to 6-8%, with expectations to deliver at or above the top end of the range over the 2026-30 period.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$245M
Q4 '25
$64M-18%
Q3 '25
$77M+27%
FCF Margin
TTM30.6%
Q4 '2532.7%+2%
Sector: 0.0%Top 10%
OCF Margin30.6%
OCF/NI2.39x
CapEx Coverage
FCF Yield14.3%
FCF Growth (2Y)+14%
Cash Conversion Cycle
34 days
DSO: 34+DIO: DPO:

Capital Allocation & Returns

Balanced
Total Shareholder YieldEst.
Est.3.4%
Div Yield3.4%
+
Est. Buyback6.5%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)3.4%
FCF Payout Ratio24.0%
Free Cash Flow (TTM)$244.8M
Capital Return / FCF24.0%
Est. Dividends Paid (TTM)$58.8M
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
4.9%
Stable
+0.0% YoY+3.0%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
19.8%
8Q: 19.2%
Asset Turnover
0.16x
8Q: 0.16x
Leverage (1+D/E)
2.23x
D/E: 1.23x
DuPont: 7.2%4.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
635.26x
8Q:275.95x
+86360.0%
Invested Cap Turn
1.44x
8Q:0.72x
+180.1%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$800.6M
$194.2M19.3%
$240.6M21.3%
$198.3M18.3%
$167.6M15.3%
$197.8M12.1%
$225.1M27.8%
$176.2M17.9%
$149.4M
Operating Income
$177.5M
$33.1M48.7%
$64.6M47.3%
$43.9M22.2%
$35.9M17.8%
$43.7M25.2%
$58.4M43.8%
$40.6M45.3%
$27.9M
Net Income
$102.6M
$16.2M64.1%
$45.1M82.9%
$24.7M49.1%
$16.6M27.8%
$22.9M40.7%
$38.7M86.8%
$20.7M76.9%
$11.7M
Operating Cash Flow
$244.8M
$63.5M17.8%
$77.3M27.0%
$60.8M40.9%
$43.2M4.2%
$41.5M22.6%
$53.5M8.6%
$49.3M3.7%
$51.2M
Free Cash Flow
$244.8M
$63.5M17.8%
$77.3M27.0%
$60.8M40.9%
$43.2M4.2%
$41.5M22.6%
$53.5M8.6%
$49.3M3.7%
$51.2M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
16.8x
Volatile
8Q: 96.2x-5536%
Valuation Lenses
Earnings
16.8x
vs sector
Cash Flow
14.1x
EV/FCF vs
Growth-Adj
2.4xPEG
Expensive for growth
Quality-Adj
3.4P/E per %ROIC
ROIC: 4.9%
Shareholder Returns
Dividend
3.4%
Buyback
Total Yield
3.4%
Market Cap$1.71B
EV$3.45B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
70/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Bottom 25%
7.0%
8Q:
Return on Invested Capital (ROIC)Top 25%
4.9%
8Q:
+3.0%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 19.8%
Asset Turnover: 0.16x

Earnings Quality

Cash Conversion

2.39x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover1.44x

Working Capital

Cash Conversion Cycle34 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
64/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
7.0%
OpInc Growth YoY
-24.1%
EPS Growth YoY
1.7%
FCF 3Y CAGR
13.8%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
Operating
22.2%
Above Avg in sector
Net
12.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+17.8 pts
FCF: 30.6% | Net: 12.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $1.87B
Interest Coverage
Leverage Metrics
Debt-to-Equity
1.23x
Balance sheet risk & solvency analysis