H2O AMERICA (HTO) Stock Fundamental Analysis
USA - NASDAQ:HTO - US7843051043 - Common Stock
46.2 USD
-0.05 (-0.11%)
46.2 USD
0 (0%)
HTO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Water Utilities industry. While HTO is still in line with the averages on profitability rating, there are concerns on its financial health. HTO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HTO was profitable.
HTO had a positive operating cash flow in the past year.
HTO had positive earnings in each of the past 5 years.
Each year in the past 5 years HTO had a positive operating cash flow.
1.2 Ratios
HTO's Return On Assets of 2.13% is on the low side compared to the rest of the industry. HTO is outperformed by 66.67% of its industry peers.
The Return On Equity of HTO (7.04%) is worse than 73.33% of its industry peers.
HTO has a worse Return On Invested Capital (3.05%) than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HTO is below the industry average of 4.86%.
The last Return On Invested Capital (3.05%) for HTO is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 7.04% | ||
| ROIC | 3.05% |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
1.3 Margins
Looking at the Profit Margin, with a value of 13.08%, HTO is doing worse than 60.00% of the companies in the same industry.
HTO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 23.00%, HTO perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
HTO's Operating Margin has improved in the last couple of years.
HTO has a better Gross Margin (87.16%) than 93.33% of its industry peers.
HTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23% | ||
| PM (TTM) | 13.08% | ||
| GM | 87.16% |
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
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.
HTO has more shares outstanding than it did 1 year ago.
HTO has more shares outstanding than it did 5 years ago.
HTO has a better debt/assets ratio than last year.
2.2 Solvency
HTO has an Altman-Z score of 0.71. This is a bad value and indicates that HTO is not financially healthy and even has some risk of bankruptcy.
HTO has a worse Altman-Z score (0.71) than 73.33% of its industry peers.
HTO has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
HTO has a worse Debt to Equity ratio (1.26) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.43
WACC7.09%
2.3 Liquidity
A Current Ratio of 0.64 indicates that HTO may have some problems paying its short term obligations.
HTO has a Current ratio of 0.64. This is in the lower half of the industry: HTO underperforms 73.33% of its industry peers.
HTO has a Quick Ratio of 0.64. This is a bad value and indicates that HTO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, HTO is not doing good in the industry: 66.67% 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 16.30%, which is quite good.
The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
Looking at the last year, HTO shows a quite strong growth in Revenue. The Revenue has grown by 11.65% 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)16.3%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%9.4%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 7.33% on average over the next years.
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 Y5.52%
EPS Next 2Y4.58%
EPS Next 3Y4.25%
EPS Next 5Y7.33%
Revenue Next Year11.01%
Revenue Next 2Y9.08%
Revenue Next 3Y8.58%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.39, which indicates a correct valuation of HTO.
Based on the Price/Earnings ratio, HTO is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
HTO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.82 indicates a correct valuation of HTO.
Based on the Price/Forward Earnings ratio, HTO is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HTO to the average of the S&P500 Index (22.53), we can say HTO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTO indicates a somewhat cheap valuation: HTO is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HTO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.61
PEG (5Y)0.87
EPS Next 2Y4.58%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
HTO has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 3.41, HTO pays a better dividend. On top of this HTO pays more dividend than 86.67% of the companies listed in the same industry.
HTO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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
HTO pays out 53.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
HTO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.2%
EPS Next 2Y4.58%
EPS Next 3Y4.25%
46.2
-0.05 (-0.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.64%
Inst Owner ChangeN/A
Ins Owners7.72%
Ins Owner Change19.77%
Market Cap1.63B
Revenue(TTM)748.44M
Net Income(TTM)103.15M
Analysts82.5
Price Target62.9 (36.15%)
Short Float %1.3%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.59
Dividend Growth(5Y)5.79%
DP53.2%
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)0%
PT rev (3m)0.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 14.82 | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.21 | ||
| P/B | 1.11 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)3.21
EY6.95%
EPS(NY)3.12
Fwd EY6.75%
FCF(TTM)-6.38
FCFYN/A
OCF(TTM)5.63
OCFY12.18%
SpS22.35
BVpS41.54
TBVpS21.93
PEG (NY)2.61
PEG (5Y)0.87
Graham Number54.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 7.04% | ||
| ROCE | 4% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 3.6% | ||
| OM | 23% | ||
| PM (TTM) | 13.08% | ||
| GM | 87.16% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
ROICexc(3y)2.85%
ROICexc(5y)2.8%
ROICexgc(3y)3.41%
ROICexgc(5y)3.42%
ROCE(3y)3.73%
ROCE(5y)3.68%
ROICexgc growth 3Y4.13%
ROICexgc growth 5Y7.45%
ROICexc growth 3Y6.1%
ROICexc growth 5Y9.16%
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
F-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.22 | ||
| Cap/Depr | 363.13% | ||
| Cap/Sales | 53.71% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 66.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.71 |
F-Score7
WACC7.09%
ROIC/WACC0.43
Cap/Depr(3y)273.96%
Cap/Depr(5y)262.79%
Cap/Sales(3y)44.13%
Cap/Sales(5y)42.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.3%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%9.4%
EPS Next Y5.52%
EPS Next 2Y4.58%
EPS Next 3Y4.25%
EPS Next 5Y7.33%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%6.88%
Revenue Next Year11.01%
Revenue Next 2Y9.08%
Revenue Next 3Y8.58%
Revenue Next 5Y5.35%
EBIT growth 1Y11.99%
EBIT growth 3Y17.21%
EBIT growth 5Y18.39%
EBIT Next Year88.07%
EBIT Next 3Y30.03%
EBIT Next 5Y21.48%
FCF growth 1Y-213.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.3%
OCF growth 3Y14.56%
OCF growth 5Y8.51%
H2O AMERICA / HTO FAQ
Can you provide the ChartMill fundamental rating for H2O AMERICA?
ChartMill assigns a fundamental rating of 4 / 10 to HTO.
What is the valuation status for HTO stock?
ChartMill assigns a valuation rating of 4 / 10 to H2O AMERICA (HTO). This can be considered as Fairly Valued.
What is the profitability of HTO stock?
H2O AMERICA (HTO) has a profitability rating of 5 / 10.
What are the PE and PB ratios of H2O AMERICA (HTO) stock?
The Price/Earnings (PE) ratio for H2O AMERICA (HTO) is 14.39 and the Price/Book (PB) ratio is 1.11.
Can you provide the financial health for HTO stock?
The financial health rating of H2O AMERICA (HTO) is 0 / 10.