44.88 USD
+0.14 (+0.31%)
HTO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 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 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.
Each year in the past 5 years HTO has been profitable.
In the past 5 years HTO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.18%, HTO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a Return On Equity value of 7.18%, HTO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
HTO has a Return On Invested Capital of 3.08%. This is in the lower half of the industry: HTO underperforms 73.33% of its industry peers.
HTO had an Average Return On Invested Capital over the past 3 years of 2.84%. This is in line with the industry average of 4.77%.
The 3 year average ROIC (2.84%) for HTO is below the current ROIC(3.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 7.18% | ||
| ROIC | 3.08% |
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
With a Profit Margin value of 13.60%, HTO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of HTO has grown nicely.
With a Operating Margin value of 23.42%, 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 (84.98%) 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 | 23.42% | ||
| PM (TTM) | 13.6% | ||
| GM | 84.98% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HTO is destroying value.
HTO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HTO has more shares outstanding
Compared to 1 year ago, HTO has an improved debt to assets ratio.
2.2 Solvency
HTO has an Altman-Z score of 0.70. This is a bad value and indicates that HTO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HTO (0.70) is worse than 73.33% of its industry peers.
HTO has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HTO has a worse Debt to Equity ratio (1.24) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
ROIC/WACC0.43
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.68 indicates that HTO may have some problems paying its short term obligations.
HTO has a Current ratio of 0.68. This is in the lower half of the industry: HTO underperforms 60.00% of its industry peers.
HTO has a Quick Ratio of 0.68. This is a bad value and indicates that HTO is not financially healthy enough and could expect problems in meeting its short term obligations.
HTO has a Quick ratio of 0.68. This is in the lower half of the industry: HTO underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.30% over the past year.
HTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.47% yearly.
HTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.39%.
HTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.22% yearly.
EPS 1Y (TTM)16.3%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%9.4%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 6.99% on average over the next years.
HTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.68% yearly.
EPS Next Y5.52%
EPS Next 2Y4.58%
EPS Next 3Y4.25%
EPS Next 5Y6.99%
Revenue Next Year11.01%
Revenue Next 2Y9.08%
Revenue Next 3Y8.58%
Revenue Next 5Y13.68%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.98 indicates a correct valuation of HTO.
HTO's Price/Earnings ratio is rather cheap when compared to the industry. HTO is cheaper than 93.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of HTO to the average of the S&P500 Index (25.47), we can say HTO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.40, the valuation of HTO can be described as correct.
86.67% of the companies in the same industry are more expensive than HTO, based on the Price/Forward Earnings ratio.
HTO is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTO is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.89 |
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)2.53
PEG (5Y)0.85
EPS Next 2Y4.58%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
HTO has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
HTO's Dividend Yield is rather good when compared to the industry average which is at 3.52. HTO pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, HTO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
51.76% of the earnings are spent on dividend by HTO. 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.
DP51.76%
EPS Next 2Y4.58%
EPS Next 3Y4.25%
NASDAQ:HTO (11/24/2025, 12:47:02 PM)
44.88
+0.14 (+0.31%)
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 Change4.95%
Market Cap1.58B
Revenue(TTM)804.22M
Net Income(TTM)109.36M
Analysts82.5
Price Target63.24 (40.91%)
Short Float %1.69%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend1.59
Dividend Growth(5Y)5.79%
DP51.76%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)7.62%
Max EPS beat(2)7.86%
EPS beat(4)4
Avg EPS beat(4)18.48%
Min EPS beat(4)7.62%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)9.63%
EPS beat(12)10
Avg EPS beat(12)17.26%
EPS beat(16)13
Avg EPS beat(16)15.07%
Revenue beat(2)1
Avg Revenue beat(2)2.32%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)4.78%
Revenue beat(4)3
Avg Revenue beat(4)3.36%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)4.78%
Revenue beat(8)7
Avg Revenue beat(8)4.27%
Revenue beat(12)10
Avg Revenue beat(12)4.15%
Revenue beat(16)12
Avg Revenue beat(16)3.12%
PT rev (1m)0.54%
PT rev (3m)0.54%
EPS NQ rev (1m)-16.38%
EPS NQ rev (3m)-16.38%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)6.01%
Revenue NQ rev (3m)6.01%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 14.4 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 7.09 | ||
| P/B | 1.04 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)3.21
EY7.15%
EPS(NY)3.12
Fwd EY6.94%
FCF(TTM)-7.15
FCFYN/A
OCF(TTM)6.33
OCFY14.1%
SpS22.79
BVpS43.18
TBVpS23.57
PEG (NY)2.53
PEG (5Y)0.85
Graham Number55.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 7.18% | ||
| ROCE | 4% | ||
| ROIC | 3.08% | ||
| ROICexc | 3.09% | ||
| ROICexgc | 3.6% | ||
| OM | 23.42% | ||
| PM (TTM) | 13.6% | ||
| GM | 84.98% | ||
| 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-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.13 | ||
| Cap/Depr | 400.9% | ||
| Cap/Sales | 59.14% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 72.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.7 |
F-Score6
WACC7.22%
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 5Y6.99%
Revenue 1Y (TTM)11.39%
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 5Y13.68%
EBIT growth 1Y15.29%
EBIT growth 3Y17.21%
EBIT growth 5Y18.39%
EBIT Next Year88.07%
EBIT Next 3Y30.03%
EBIT Next 5Y21.21%
FCF growth 1Y-228.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.8%
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 13.98 and the Price/Book (PB) ratio is 1.04.
Can you provide the financial health for HTO stock?
The financial health rating of H2O AMERICA (HTO) is 0 / 10.