H2O AMERICA (HTO) Stock Fundamental Analysis
NASDAQ:HTO - US7843051043 - Common Stock
50.47 USD
+0.53 (+1.06%)
50.47 USD
0 (0%)
Taking everything into account, HTO scores 3 out of 10 in our fundamental rating. HTO was compared to 14 industry peers in the Water Utilities industry. There are concerns on the financial health of HTO while its profitability can be described as average. HTO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HTO had positive earnings in the past year.
In the past year HTO had a positive cash flow from operations.
HTO had positive earnings in each of the past 5 years.
HTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HTO has a worse Return On Assets (2.15%) than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 7.09%, HTO is doing worse than 78.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.06%, HTO is doing worse than 71.43% of the companies in the same industry.
HTO had an Average Return On Invested Capital over the past 3 years of 2.84%. This is below the industry average of 4.98%.
The last Return On Invested Capital (3.06%) for HTO is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.09% | ||
| ROIC | 3.06% |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.81%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.8%
1.3 Margins
With a Profit Margin value of 13.19%, HTO is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
HTO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 23.07%, HTO perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of HTO has grown nicely.
Looking at the Gross Margin, with a value of 87.19%, HTO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of HTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.07% | ||
| PM (TTM) | 13.19% | ||
| GM | 87.19% |
OM growth 3Y7.38%
OM growth 5Y5.56%
PM growth 3Y6.01%
PM growth 5Y17.68%
GM growth 3Y1.64%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
HTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HTO has more shares outstanding
The number of shares outstanding for HTO has been increased compared to 5 years ago.
The debt/assets ratio for HTO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that HTO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.73, HTO is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
HTO has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HTO (1.26) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.42
WACC7.38%
2.3 Liquidity
A Current Ratio of 0.64 indicates that HTO may have some problems paying its short term obligations.
HTO's Current ratio of 0.64 is on the low side compared to the rest of the industry. HTO is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.64 indicates that HTO may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, HTO is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
HTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.97%, which is quite good.
Measured over the past years, HTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.47% on average per year.
Looking at the last year, HTO shows a quite strong growth in Revenue. The Revenue has grown by 12.40% in the last year.
Measured over the past years, HTO shows a quite strong growth in Revenue. The Revenue has been growing by 12.22% on average per year.
EPS 1Y (TTM)13.97%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%17.19%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%12.53%
3.2 Future
Based on estimates for the next years, HTO will show a small growth in Earnings Per Share. The EPS will grow by 7.33% on average per year.
Based on estimates for the next years, HTO will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y5.78%
EPS Next 2Y4.36%
EPS Next 3Y0.92%
EPS Next 5Y7.33%
Revenue Next Year10.69%
Revenue Next 2Y8.4%
Revenue Next 3Y5.5%
Revenue Next 5Y5.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.28 indicates a correct valuation of HTO.
Based on the Price/Earnings ratio, HTO is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.06. HTO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.26, which indicates a correct valuation of HTO.
Based on the Price/Forward Earnings ratio, HTO is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. HTO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTO is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.81
PEG (5Y)0.99
EPS Next 2Y4.36%
EPS Next 3Y0.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, HTO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.38, HTO pays a bit more dividend than its industry peers.
HTO's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
The dividend of HTO has a limited annual growth rate of 5.79%.
HTO has been paying a dividend for over 5 years, so it has already some track record.
HTO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.79%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
52.88% of the earnings are spent on dividend by HTO. This is a bit on the high side, but may be sustainable.
The dividend of HTO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.88%
EPS Next 2Y4.36%
EPS Next 3Y0.92%
50.47
+0.53 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.05%
Inst Owner ChangeN/A
Ins Owners7.72%
Ins Owner Change19.77%
Market Cap1.78B
Analysts85.71
Price Target62.9 (24.63%)
Short Float %1.8%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend1.59
Dividend Growth(5Y)5.79%
DP52.88%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.09%
Min EPS beat(2)7.62%
Max EPS beat(2)36.57%
EPS beat(4)4
Avg EPS beat(4)16.69%
Min EPS beat(4)0.73%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)10.62%
EPS beat(12)10
Avg EPS beat(12)18.64%
EPS beat(16)12
Avg EPS beat(16)13.74%
Revenue beat(2)2
Avg Revenue beat(2)4.56%
Min Revenue beat(2)4.35%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)4.49%
Min Revenue beat(4)4.35%
Max Revenue beat(4)4.78%
Revenue beat(8)8
Avg Revenue beat(8)5.34%
Revenue beat(12)11
Avg Revenue beat(12)4.27%
Revenue beat(16)12
Avg Revenue beat(16)2.4%
PT rev (1m)1.09%
PT rev (3m)-0.54%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-6%
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.28 | ||
| Fwd PE | 16.26 | ||
| P/S | 2.26 | ||
| P/FCF | N/A | ||
| P/OCF | 8.95 | ||
| P/B | 1.21 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)3.1
EY6.14%
EPS(NY)3.1
Fwd EY6.15%
FCF(TTM)-6.35
FCFYN/A
OCF(TTM)5.64
OCFY11.17%
SpS22.35
BVpS41.54
TBVpS21.93
PEG (NY)2.81
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 7.09% | ||
| ROCE | 4.01% | ||
| ROIC | 3.06% | ||
| ROICexc | 3.08% | ||
| ROICexgc | 3.61% | ||
| OM | 23.07% | ||
| PM (TTM) | 13.19% | ||
| GM | 87.19% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.81%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.8%
ROICexc(3y)2.85%
ROICexc(5y)2.8%
ROICexgc(3y)3.41%
ROICexgc(5y)3.42%
ROCE(3y)3.73%
ROCE(5y)3.68%
ROICexcg growth 3Y4.23%
ROICexcg growth 5Y7.51%
ROICexc growth 3Y6.2%
ROICexc growth 5Y9.23%
OM growth 3Y7.38%
OM growth 5Y5.56%
PM growth 3Y6.01%
PM growth 5Y17.68%
GM growth 3Y1.64%
GM growth 5Y0.2%
F-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 361.54% | ||
| Cap/Sales | 53.63% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 66.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.73 |
F-Score7
WACC7.38%
ROIC/WACC0.42
Cap/Depr(3y)274.17%
Cap/Depr(5y)262.92%
Cap/Sales(3y)44.14%
Cap/Sales(5y)42.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.97%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%17.19%
EPS Next Y5.78%
EPS Next 2Y4.36%
EPS Next 3Y0.92%
EPS Next 5Y7.33%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%12.53%
Revenue Next Year10.69%
Revenue Next 2Y8.4%
Revenue Next 3Y5.5%
Revenue Next 5Y5.35%
EBIT growth 1Y12.34%
EBIT growth 3Y17.33%
EBIT growth 5Y18.46%
EBIT Next Year86.11%
EBIT Next 3Y30.15%
EBIT Next 5Y21.48%
FCF growth 1Y-211.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.56%
OCF growth 3Y14.66%
OCF growth 5Y8.56%