H2O America (HTO) Stock

H2O America (HTO) is a Utilities stock trading at $63.55 (as of 2026-08-21), with a market capitalization of $2.66B and a trailing P/E of 25.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

H2O America and its subsidiaries provide water utility services in the United States, including the production, storage, purification, distribution, and sale of water and wastewater. It also supplies groundwater, surface water, reclaimed water, and imported water, and offers related operational and maintenance services to municipal and other customers serving areas in California, Connecticut, and Maine.

Understand H2O America: how it makes money

H2O America provides water and wastewater utility services in the United States, including producing, purchasing, storing, purifying, and distributing water, and operating related services like maintenance agreements, system operations, and antenna site leases, and it earns money primarily through regulated water and wastewater operating revenue.

The profit model is structurally tied to regulated operating revenue authorized by regulators (rate cases, infrastructure and conservation adjustments, and infrastructure recovery mechanisms), with some items behaving like pass-through water costs for wholesalers and offsets from customer usage changes.

Business quality (Weak): Good clarity on what drives revenue conceptually (regulated mechanisms and pass-through items), but limited visibility into official, mutually exclusive reportable segments from the provided data.

Valuation: At 19× earnings, HTO trades 12% below the Utilities average (22×). Note: one-time items can distort reported P/E.

Bull case

Regulatory mechanisms support revenue generation: The provided revenue components reference annualized water infrastructure and conservation adjustment and revenue increases from general rate cases and infrastructure recovery mechanisms.
Operational monitoring supports service performance: The company tracks operational signals like leak alert notifications, which can be important for managing water system reliability.

Bear case

Customer usage can offset revenue increases: The provided revenue components include an explicit note about a lower customer usage revenue impact that offsets other revenue increases.
Results depend on regulatory timing and authorization: Revenue build-ups in the provided data are tied to authorized and effective revenue and rate filings, which can be sensitive to regulatory approvals and processes.

Valuation — source: SEC EDGAR (first-party)
Price	$63.55
Market Cap	$2.66B
P/E Ratio	25.2
EV / EBITDA	11.1
Price / Book	1.45
Price / Sales	3.37
DCF Value (model)	$207.66
DCF Upside vs Price	226.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$800.59M
Net Margin	12.8%
Revenue Growth (YoY)	7.0%
EPS Growth (YoY)	2.1%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.79 (distress)

Valuation vs Sector & Industry
Stock P/E	25.2
Sector P/E (Utilities)	20.8
Industry P/E (Utilities)	20.1
vs Sector	21.1%
vs Industry	25.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($376.53M)
Institutional Holders Tracked	10

Company
Sector	Utilities
Industry	Utilities
CEO	Andrew F. Walters
Employees	822
Country	US
IPO Date	1972-06-01

Related Companies (Business model: Regulated Utility (Electric / Gas); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.