HTO

Utilities

H2O America · Regulated Water · $2B

UQS Score — Balanced Preset
44.9
Below Average

H2O America scores 44.9/100 using the Balanced preset.

UQS vs Utilities Sector
HTO
44.9
Sector avg
43.5
Quality
Neutral
Moat
Neutral
Growth
Neutral
Risk
Weak
Valuation
Neutral

What is H2O America?

H2O America is a regulated water utility serving roughly one million customers across California, Connecticut, and Maine. The company delivers essential water and wastewater services through a network of local subsidiaries.

H2O America produces, purifies, stores, and distributes drinking water to residential and commercial customers through tariffed utility operations. Revenue comes primarily from regulated water rates approved by state commissions. Beyond core water delivery, the company earns supplemental income from non-tariffed services such as water system operations contracts, maintenance agreements, antenna site leases, and a home-service protection plan called Linebacker, offered to customers in Connecticut and Maine.

Founded in 1972 and headquartered in San Jose, California, H2O America has built a multi-state regulated utility footprint over several decades.

  • Regulated drinking water distribution across California, Connecticut, and Maine
  • Wastewater collection and treatment services in Connecticut
  • Contracted water system operations and maintenance agreements
  • Linebacker home protection plan for public drinking water lines
  • Wholesale water supply and reclaimed water services

Is HTO a Good Stock to Buy?

UQS Score rates HTO as Below Average overall, reflecting a mixed fundamental profile across its five pillars.

The Quality, Moat, Growth, and Valuation pillars each land at a Neutral rating, suggesting the business operates in line with regulated utility norms without standing out in either direction. Regulated utilities like H2O America benefit from predictable, commission-approved revenue streams that provide a degree of earnings stability.

The Risk pillar is rated Weak, which is the most notable flag in HTO's profile — pointing to elevated financial or operational risk relative to sector peers.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does HTO pay dividends?

Yes — H2O America pays a dividend.

H2O America pays a regular dividend, consistent with the income-oriented nature of regulated water utilities. Stable, commission-approved cash flows typically support ongoing dividend payments in this sector. Investors drawn to utility dividends should weigh HTO's Weak Risk pillar alongside its income profile before relying on dividend continuity.

When does HTO report earnings?

H2O America reports earnings on a quarterly cadence, typical for US-listed equities.

As a regulated utility, H2O America's quarterly results tend to reflect rate-case outcomes, weather-driven demand, and infrastructure investment levels rather than dramatic revenue swings. The Neutral Growth pillar suggests performance has tracked broadly in line with sector expectations.

For the most recent quarter's results, visit H2O America's investor relations page directly.

HTO Price History

+4.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in H2O America?

$
Today it would be worth
$9,826
That's a -1.7% total return, or -0.4% annualized.

Based on H2O America's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

HTO Long-term Outlook

H2O America's Neutral Growth pillar indicates the company is not expected to meaningfully outpace the regulated utility sector in the near term. Growth in this space is largely tied to approved rate increases and infrastructure capital programs. The Weak Risk pillar introduces uncertainty around that trajectory, as financial leverage or regulatory headwinds could weigh on future performance.

Growth drivers

  • Regulatory rate case approvals enabling gradual revenue increases
  • Infrastructure investment programs expanding or upgrading service territory
  • Non-tariffed service contracts providing supplemental revenue diversification

Key risks

  • Elevated financial risk as flagged by the Weak Risk pillar rating
  • Regulatory lag between capital spending and approved rate recovery
  • Water supply constraints and drought exposure in California service areas

HTO vs Peers

H2O America operates in a regulated water utility landscape alongside several peers with overlapping geographic or operational profiles.

WTTRHTO scores higher
Select Water Solutions, Inc.

Select Water Solutions focuses on water management services for the energy sector, giving it a very different revenue driver than H2O America's municipal utility model.

CWTHTO scores lower
California Water Service Group

California Water Service Group is a direct geographic peer in California, competing for similar customer bases and facing the same state regulatory environment.

AWRHTO scores lower
American States Water Company

American States Water serves California customers and also operates contracted water and wastewater systems on US military bases, adding a government-contract revenue stream H2O America lacks.

Frequently Asked Questions

What does H2O America do?

H2O America is a regulated water utility that produces, purifies, and distributes drinking water to approximately one million people across parts of California, Connecticut, and Maine. It also provides wastewater services in Connecticut and earns supplemental revenue from contracted operations and a home-line protection plan.

Does HTO pay dividends?

Yes, H2O America pays a regular dividend. Regulated water utilities commonly return cash to shareholders through dividends, supported by predictable rate-approved revenues. Investors should review the company's investor relations page for the current dividend rate and payment schedule.

When does HTO report earnings?

H2O America reports on a quarterly cadence, in line with standard US-listed company practice. For exact reporting dates, check the company's investor relations page or a financial calendar service.

Is HTO a good stock to buy?

UQS Score rates HTO as Below Average overall. While several pillars sit at Neutral, the Weak Risk pillar is a meaningful concern. Whether HTO fits a portfolio depends on individual risk tolerance and income objectives. The full pillar breakdown is available to UQS Pro members.

Is HTO overvalued?

HTO's Valuation pillar is rated Neutral, suggesting the stock is not obviously cheap or expensive relative to its fundamentals. Regulated utilities often trade at premium multiples due to their income stability, so context matters. Pro members can view the complete valuation metrics behind this rating.

How does HTO compare to its competitors?

Among water utility peers like California Water Service Group and American States Water, H2O America is a mid-cap operator with a multi-state footprint. Its Below Average UQS Score, driven largely by a Weak Risk rating, suggests it may carry more risk than some sector peers. See the competitor comparison section above for more detail.

What is HTO's market cap bracket?

H2O America is classified as a mid-cap company. This places it in a tier that typically offers more liquidity than small-cap utilities while remaining smaller than the largest national water utility operators.

Who founded H2O America?

H2O America was founded in 1972. For detailed founding history and leadership background, the company's official website and investor relations materials are the most reliable sources.

Is HTO a long-term quality indicator?

From a long-term quality standpoint, HTO's Neutral ratings across Quality, Moat, and Growth suggest a business that performs in line with regulated utility norms without exceptional durability advantages. The Weak Risk pillar warrants attention for investors with a long time horizon. Pro members can access the full composite view.

What is the main competitive advantage of H2O America?

As a regulated utility, H2O America benefits from exclusive service territories granted by state regulators, which limits direct competition. This structural protection supports relatively predictable revenues, though it also means growth is largely dependent on regulatory approval rather than market-driven expansion.

What sector does HTO belong to?

HTO belongs to the Utilities sector, specifically the water utility industry. Water utilities are generally considered defensive investments due to the essential nature of their service, though they are subject to regulatory, infrastructure, and environmental risks.

Is HTO a growth stock or value stock?

With a Neutral Growth pillar and a Neutral Valuation pillar, HTO does not fit neatly into either category. It lacks the above-average expansion profile of a growth stock and does not show a clearly discounted valuation that would define a classic value play. It is best characterized as a steady regulated utility.

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Pro Analysis

HTO — Score History

35404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 20 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202644.840.950.046.629.755.5+2.2
May 10, 202642.630.150.047.638.648.4-2.4
May 9, 202645.040.950.047.629.755.2+2.3
May 8, 202642.730.150.047.638.649.1+0.1
May 7, 202642.641.350.047.613.754.60.0
May 3, 202642.641.350.047.613.754.9+0.2
May 2, 202642.441.350.047.613.753.4+0.1
May 1, 202642.341.350.047.213.753.4-1.4
Apr 29, 202643.746.950.047.213.753.40.0
Apr 26, 202643.746.950.047.413.753.0-0.2

HTO — Pillar Breakdown

Quality

40.9/100 (25%)

H2O America has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

46.6/100 (20%)

H2O America shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

29.7/100 (15%)

H2O America presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

55.6/100 (15%)

H2O America trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

50/100 (25%)

H2O America possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HTO.

Score Composition

Quality
40.9×25%10.2
Growth
46.6×20%9.3
Risk
29.7×15%4.5
Valuation
55.6×15%8.3
Moat
50.0×25%12.5
Total
44.9Below Average

Financial Data

More Stock Analysis

How is the HTO UQS Score Calculated?

The UQS (Unified Quality Score) for H2O America is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses H2O America's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether H2O America is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.