A Business at a Glance
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H2O AMERICA
HTO
$2.2B
Mkt Cap
$63.84
-0.13%
H2O AMERICA (HTO) has a current P/E ratio of 21.9, compared to its historical median P/E of 24.1. The stock is currently considered Fair based on its historical valuation range.
H2O AMERICA (HTO) has a 5-year average return on invested capital (ROIC) of 4.8%. This is below average and may indicate limited pricing power.
H2O AMERICA (HTO) has a market capitalization of $2.7B. It is classified as a mid-cap stock.
Yes, H2O AMERICA (HTO) pays a dividend with a trailing twelve-month yield of 2.26%.
Based on historical P/E analysis, H2O AMERICA (HTO) appears fair. The current P/E of 21.9 is 9% below its historical median of 24.1. The estimated fair value CAGR (P/E method) is 13.2%.
H2O AMERICA (HTO) operates in the Water Supply industry, within the Utilities sector.
H2O AMERICA (HTO) reported annual revenue of $801 million in its most recent fiscal year, based on SEC EDGAR filings.
Table of Contents General Development of Business H2O America, a Delaware corporation, was initially incorporated as SJW Corp. in the state of California in 1985. In May 2025, the company changed its corporate name from SJW Group to H2O America. We will not distinguish between our prior and current corporate name and will refer to our current corporate name throughout this Annual Report on Form 10-K. As such, unless expressly indicated or the context requires otherwise, the terms “H2O America,” “company,” “we,” “us,” and “our” in this document refer to H2O America, a Delaware corporation, and, where appropriate, its subsidiaries. H2O America is a holding company that conducts its business through the following wholly owned subsidiaries: •San Jose Water Company (“SJWC”), with its headquarters located at 110 West Taylor Street in San Jose, California 95110, was originally incorporated under the laws of the State of California in 1866.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 816M | 801M | 748M | 670M | 621M | 574M |
| Net Income | 105M | 103M | 94M | 85M | 74M | 60M |
| EPS | $2.86 | $2.92 | $2.87 | $2.68 | $2.43 | $2.03 |
| Free Cash Flow | 188M | 197M | 154M | 155M | 144M | 109M |
| ROIC | 4.5% | 4.9% | 5.3% | 5.2% | 4.6% | 4.0% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 1.02 | 1.23 | 1.25 | 1.28 | 1.35 | 1.48 |
| Dividends/Share | $1.44 | $1.68 | $1.60 | $1.52 | $1.44 | $1.36 |
| Operating Income | 179M | 178M | 171M | 149M | 131M | 111M |
| Operating Margin | 21.9% | 22.2% | 22.8% | 22.3% | 21.1% | 19.4% |
| ROE | 5.7% | 7.1% | 7.2% | 7.3% | 6.9% | 6.2% |
| Shares Outstanding | 42M | 35M | 33M | 32M | 30M | 30M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 320M | 305M | 340M | 389M | 398M | 420M | 565M | 574M | 621M | 670M | 748M | 801M | 816M |
| Gross Margin | 85.2% | 80.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 41M | 47M | 42M | 49M | 49M | 66M | 80M | 87M | 95M | 99M | 106M | 126M | 128M |
| EBIT | 93M | 80M | 97M | 102M | 73M | 57M | 118M | 111M | 131M | 149M | 171M | 178M | 179M |
| Op. Margin | 29.1% | 26.2% | 28.7% | 26.2% | 18.5% | 13.7% | 20.8% | 19.4% | 21.1% | 22.3% | 22.8% | 22.2% | 21.9% |
| Net Income | 52M | 38M | 53M | 59M | 39M | 23M | 62M | 60M | 74M | 85M | 94M | 103M | 105M |
| Net Margin | 16.2% | 12.4% | 15.6% | 15.2% | 9.7% | 5.6% | 10.9% | 10.5% | 11.9% | 12.7% | 12.6% | 12.8% | 12.9% |
| Non-Recurring | 0 | 0 | 0 | 12M | 9K | 0 | 0 | 7.5M | 6.2M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 8.3% | 6.3% | 7.4% | 7.4% | 6.5% | 2.7% | 4.6% | 4.0% | 4.6% | 5.2% | 5.3% | 4.9% | 4.5% |
| ROE | 14.4% | 9.9% | 13.1% | 13.4% | 5.7% | 2.6% | 6.8% | 6.2% | 6.9% | 7.3% | 7.2% | 7.1% | 5.7% |
| ROA | 4.1% | 2.8% | 3.8% | 3.5% | 2.0% | 0.9% | 1.9% | 1.8% | 2.0% | 2.1% | 2.1% | 2.1% | 2.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 66M | 97M | 115M | 101M | 91M | 130M | 104M | 130M | 166M | 191M | 196M | 245M | 245M |
| Free Cash Flow | 66M | 96M | 114M | 101M | 91M | 130M | 79M | 109M | 144M | 155M | 154M | 197M | 188M |
| Owner Earnings | 25M | 53M | 67M | 48M | 32M | 58M | 8.9M | 29M | 55M | 78M | 75M | 118M | 114M |
| CapEx | 13K | 1.1M | 328K | 116K | 123K | 137K | 25M | 21M | 23M | 36M | 42M | 48M | 57M |
| Maint. CapEx | 39M | 42M | 46M | 51M | 57M | 68M | 92M | 96M | 106M | 108M | 115M | 120M | 125M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 39M | 42M | 46M | 51M | 57M | 68M | 92M | 96M | 106M | 108M | 115M | 120M | 125M |
| CapEx/OCF | 0.0% | 1.1% | 0.3% | 0.1% | 0.1% | 0.1% | 0.4% | 15.8% | 13.6% | 18.8% | 21.3% | 19.7% | 23.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 15M | 16M | 17M | 21M | 23M | 34M | 37M | 40M | 44M | 48M | 52M | 59M | 60M |
| Dividend Yield | 3.4% | 3.2% | 2.5% | 2.3% | 2.2% | 2.2% | 2.3% | 2.3% | 2.4% | 2.3% | 3.0% | 3.4% | 2.3% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 1.0M | 1.6M | 1.7M | 2.6M | 2.1M | 3.4M | 3.6M | 4.2M | 4.8M | 4.6M | 5.6M | 6.4M | 6.4M |
| Debt Repayment | 602K | 633K | 17M | 2.7M | 0 | 1.4M | 29M | 76M | 89M | 4.3M | 49M | 3.9M | 3.9M |
| Balance Sheet | |||||||||||||
| Net Debt | 393M | 405M | 427M | 423M | 11M | 1.3B | 1.4B | 1.5B | 1.5B | 1.6B | 1.7B | 1.9B | 1.7B |
| Cash & Equiv. | 2.4M | 5.2M | 6.3M | 7.8M | 421M | 13M | 5.3M | 11M | 12M | 9.7M | 11M | 21M | 153M |
| Long-Term Debt | 384M | 377M | 433M | 431M | 431M | 1.3B | 1.3B | 1.5B | 1.5B | 1.5B | 1.7B | 1.9B | 1.9B |
| Debt/Equity | 1.11 | 1.08 | 1.03 | 0.93 | 0.49 | 1.47 | 1.49 | 1.48 | 1.35 | 1.28 | 1.25 | 1.23 | 1.02 |
| Interest Coverage | 4.8 | 3.8 | 4.5 | 4.4 | 3.0 | 1.8 | 2.2 | 2.0 | 2.3 | 2.3 | 2.4 | 2.4 | 298.9 |
| Equity | 360M | 384M | 422M | 463M | 889M | 890M | 917M | 1.0B | 1.1B | 1.2B | 1.4B | 1.5B | 1.8B |
| Total Assets | 1.3B | 1.3B | 1.4B | 2.0B | 2.0B | 3.1B | 3.3B | 3.5B | 3.8B | 4.3B | 4.7B | 5.1B | 5.4B |
| Total Liabilities | 909M | 954M | 234M | 142M | 1.1B | 262M | 2.4B | 272M | 307M | 3.1B | 350M | 384M | 556M |
| Intangibles | 14M | 16M | 16M | 6.3M | 7.1M | 20M | 21M | 21M | 16M | 15M | 42M | 41M | 41M |
| Retained Earnings | 281M | 302M | 338M | 376M | 394M | 383M | 408M | 428M | 458M | 495M | 537M | 581M | 584M |
| Working Capital | 23M | -6.2M | 36M | -18M | 339M | -113M | -223M | -69M | -110M | -145M | -70M | -83M | 163M |
| Current Assets | 68M | 73M | 100M | 67M | 503M | 122M | 127M | 134M | 158M | 198M | 191M | 191M | 323M |
| Current Liabilities | 45M | 80M | 64M | 85M | 164M | 235M | 351M | 203M | 268M | 343M | 261M | 273M | 160M |
| Per Share Data | |||||||||||||
| EPS | 2.54 | 1.85 | 2.57 | 2.86 | 1.82 | 0.82 | 2.14 | 2.03 | 2.43 | 2.68 | 2.87 | 2.92 | 2.86 |
| Owner EPS | 1.24 | 2.60 | 3.24 | 2.32 | 1.52 | 2.04 | 0.31 | 0.98 | 1.81 | 2.46 | 2.29 | 3.36 | 2.73 |
| Book Value | 17.66 | 18.74 | 20.51 | 22.38 | 41.75 | 31.18 | 31.91 | 34.72 | 36.56 | 38.89 | 41.75 | 43.86 | 43.84 |
| Cash Flow/Share | 3.23 | 4.75 | 5.57 | 4.88 | 4.29 | 4.56 | 3.62 | 4.36 | 5.47 | 6.02 | 5.97 | 6.97 | 5.49 |
| Dividends/Share | 0.75 | 0.78 | 0.81 | 1.04 | 1.12 | 1.20 | 1.28 | 1.36 | 1.44 | 1.52 | 1.60 | 1.68 | 1.44 |
| Shares Out. | 20.4M | 20.5M | 20.6M | 20.7M | 21.3M | 28.5M | 28.7M | 29.8M | 30.4M | 31.7M | 32.7M | 35.1M | 41.8M |
| Valuation | |||||||||||||
| P/E Ratio | 9.9 | 13.1 | 17.6 | 18.6 | 25.3 | 74.9 | 28.2 | 31.2 | 31.1 | 23.0 | 16.5 | 16.6 | 22.3 |
| P/FCF | 7.8 | 5.2 | 8.2 | 10.9 | 10.8 | 13.5 | 21.9 | 17.2 | 16.0 | 12.6 | 10.1 | 8.6 | 14.2 |
| EV/EBIT | 9.8 | 11.3 | 14.7 | 15.3 | 14.9 | 55.0 | 27.8 | 31.2 | 30.0 | 24.6 | 19.7 | 20.5 | 24.5 |
| Price/Book | 1.4 | 1.3 | 2.2 | 2.4 | 1.1 | 2.0 | 1.9 | 1.8 | 2.1 | 1.6 | 1.1 | 1.1 | 1.5 |
| Price/Sales | 1.4 | 1.6 | 2.0 | 2.3 | 2.7 | 3.7 | 2.8 | 3.1 | 2.9 | 3.1 | 2.4 | 2.2 | 3.3 |
| FCF Yield | 12.8% | 19.4% | 12.3% | 9.2% | 9.3% | 7.4% | 4.6% | 5.8% | 6.3% | 7.9% | 9.9% | 11.6% | 7.0% |
| Market Cap | 513M | 496M | 932M | 1.1B | 982M | 1.8B | 1.7B | 1.9B | 2.3B | 2.0B | 1.6B | 1.7B | 2.7B |
| Avg. Price | 21.61 | 24.17 | 32.30 | 44.18 | 49.80 | 54.82 | 55.38 | 59.06 | 59.86 | 65.44 | 53.93 | 49.28 | 63.84 |
| Year-End Price | 25.14 | 24.20 | 45.34 | 53.23 | 46.10 | 61.46 | 60.44 | 63.23 | 75.61 | 61.55 | 47.35 | 48.42 | 63.84 |
H2O AMERICA passes 3 of 9 quality checks, indicating weak fundamentals.
H2O AMERICA trades at 21.9x trailing earnings, compared to its 15-year median P/E of 24.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.7x vs a median of 11.8x. The company's 5-year average ROIC is 4.8%. Total shareholder yield (dividends) is 2.3%. At current prices, the estimated annualized return to fair value is +2.4%.
H2O AMERICA (HTO) has a net profit margin of 12.8%. This is a healthy margin.
H2O AMERICA (HTO) generated $197 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
H2O AMERICA (HTO) has a debt-to-equity ratio of 1.23. This indicates moderate leverage.
H2O AMERICA (HTO) reported earnings per share (EPS) of $2.92 in its most recent fiscal year.
H2O AMERICA (HTO) has a return on equity (ROE) of 7.1%. This indicates moderate shareholder returns.
The Ledger Terminal provides 17 years of financial data for H2O AMERICA (HTO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
H2O AMERICA (HTO) has a book value per share of $43.86, based on its most recent annual SEC filing.