H2O AMERICA (HTO) Stock Fundamental Analysis
USA - NASDAQ:HTO - US7843051043 - Common Stock
48.41 USD
+0.41 (+0.85%)
48.41 USD
0 (0%)
Overall HTO gets a fundamental rating of 3 out of 10. We evaluated HTO against 14 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.
In the past year HTO had a positive cash flow from operations.
Each year in the past 5 years HTO has been profitable.
HTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.15%, HTO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
HTO's Return On Equity of 7.09% is on the low side compared to the rest of the industry. HTO is outperformed by 78.57% of its industry peers.
With a Return On Invested Capital value of 3.06%, HTO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for HTO is below the industry average of 4.98%.
The 3 year average ROIC (2.84%) for HTO is below the current ROIC(3.06%), indicating increased profibility in the last year.
| 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
HTO has a worse Profit Margin (13.19%) than 64.29% of its industry peers.
In the last couple of years the Profit Margin of HTO has grown nicely.
HTO has a Operating Margin (23.07%) which is comparable to the rest of the industry.
HTO's Operating Margin has improved in the last couple of years.
HTO has a Gross Margin of 87.19%. This is amongst the best in the industry. HTO outperforms 92.86% of its industry peers.
HTO's Gross Margin has been stable in the last couple of years.
| 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.
HTO has more shares outstanding than it did 1 year ago.
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 0.72, we must say that HTO is in the distress zone and has some risk of bankruptcy.
HTO has a Altman-Z score of 0.72. This is in the lower half of the industry: HTO underperforms 78.57% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that HTO has dependencies on debt financing.
HTO's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. HTO is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.42
WACC7.36%
2.3 Liquidity
A Current Ratio of 0.64 indicates that HTO may have some problems paying its short term obligations.
With a Current ratio value of 0.64, HTO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
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.
HTO has a worse Quick ratio (0.64) than 64.29% of its industry peers.
| 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.
HTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.47% yearly.
Looking at the last year, HTO shows a quite strong growth in Revenue. The Revenue has grown by 12.40% in the last year.
The Revenue has been growing by 12.22% on average over the past years. This is quite good.
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
HTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.33% yearly.
HTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.62, which indicates a correct valuation of HTO.
HTO's Price/Earnings ratio is rather cheap when compared to the industry. HTO is cheaper than 85.71% of the companies in the same industry.
HTO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
A Price/Forward Earnings ratio of 15.60 indicates a correct valuation of HTO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HTO indicates a rather cheap valuation: HTO is cheaper than 85.71% of the companies listed in the same industry.
HTO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 15.6 |
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 | 11.37 |
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)2.7
PEG (5Y)0.95
EPS Next 2Y4.36%
EPS Next 3Y0.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, HTO has a reasonable but not impressive dividend return.
HTO's Dividend Yield is a higher than the industry average which is at 3.38.
Compared to an average S&P500 Dividend Yield of 2.42, HTO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of HTO has a limited annual growth rate of 5.62%.
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)5.62%
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.
HTO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.88%
EPS Next 2Y4.36%
EPS Next 3Y0.92%
48.41
+0.41 (+0.85%)
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 Cap1.71B
Analysts85.71
Price Target62.9 (29.93%)
Short Float %1.59%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.58
Dividend Growth(5Y)5.62%
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)0%
PT rev (3m)-0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 15.6 | ||
| P/S | 2.17 | ||
| P/FCF | N/A | ||
| P/OCF | 8.58 | ||
| P/B | 1.17 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)3.1
EY6.4%
EPS(NY)3.1
Fwd EY6.41%
FCF(TTM)-6.35
FCFYN/A
OCF(TTM)5.64
OCFY11.65%
SpS22.35
BVpS41.54
TBVpS21.93
PEG (NY)2.7
PEG (5Y)0.95
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 | 0.72 |
F-Score7
WACC7.36%
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 Year88.07%
EBIT Next 3Y30.03%
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%