H2O America (HTO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of H2O America stock $27.06, price $62.95, that is 57.0% below the price, quality 28 out of 100. Rating: strongly overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $42.97 – $75.18 · fair‑value band $23.56 – $39.27 · the $62.95 price screens above the $27.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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H2O America, through its subsidiaries, provides water utility and other related services in the United States.
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The company engages in production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Valley Water District.
It also offers non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services, sewer operations, and other water related services; and a Linebacker protection plan for public drinking water customers in Connecticut and Maine.
In addition, the company provides water services; owns undeveloped land in California; and commercial properties and parcels of land in Connecticut. The company was formerly known as SJW Group and changed its name to H2O America in May 2025.
H2O America was incorporated in 1985 and is headquartered in San Jose, California.
Stock analysis
H2O America (HTO) currently trades at $62.95, while our model-based Fair Value estimate is $27.06, 57% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $41.28 per share, and 0 of the 16 models we run sit above the $62.95 price.
Bear case: the Asset-Based group reads lowest at $13.76, and 16 of the 16 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $23.56 (bear) to $39.27 (bull), the price of $62.95 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 28/100 (below-average quality), in the Utilities sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
H2O America reported revenue of $801M in FY2025 versus $574M in FY2021, a compound +8.7%/yr. Reported net income was $103M in FY2025, compounding +14.1%/yr from FY2021.
Key figures
Market cap $2.6B Mid · P/E ratio 24.5 · P/S ratio 3.11 · EPS (TTM) $2.57 · Dividend yield 2.7% · Net margin 12.9% · Return on equity 6.5% · Return on assets (EBIT) 3.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (low confidence).
What moves the price
The share trades about 3% below its 52-week high and 45% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at 3% fair-value upside, at −57%, HTO screens richer than that median.
Fair Value models
Bear$23.56Fair Value $27.06Bull$39.27
Price $62.95 · Downside -57.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.7289 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income$30.18$31.84$34.9376
EPVn/a$1.60>$6.4068
ROIC Compoundern/a$1.60>$6.4068
All 16 models by family
Earnings-Based
Graham-Dodd$16.66$57.22$76.8164
Lynch FV$13.19$18.85$24.5061
PEG = 1.0$13.19$18.85$24.5057
EPVn/a$1.60>$6.4068
Dividend Discount
Gordon GGM$13.46$29.34$49.2865
DDM Multi-Stage$13.46$23.75$30.5966
Multiples
P/E Multiple$33.08$44.11$55.1463
P/S Multiple$31.25$41.66$52.0858
P/B Multiple$27.72$36.96$46.2055
EV/EBIT$1.90$18.12$34.3357
EV/EBITDA$7.28$25.28$43.2961
EV/Revenuen/a$1.08>$4.3250
Asset-Based
NCAV (Graham)$10.27$13.76$20.5354
Economic Profit
Residual Income$30.18$31.84$34.9376
ROIC Compoundern/a$1.60>$6.4068
Growth Earnings
Growth-Adj P/E$28.90$41.28$53.6767
The fair value above starts from this blend and is adjusted for dilution from new shares.
SaleATLAS Infrastructure Partners (UK) Ltd.10% owner2× since May 29, 2026: 3,121 shares, avg. $59.26$184,949Jul 1, 2026
SaleAndrew F WaltersChief Executive Officer, Director2,100 shares at $47.22$99,162Nov 13, 2025
Plus 12 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.41/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+7.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.2%
Start year 2020 (pandemic). Over 10 years: +10.1% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+9.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.0%
Dividend (yield on the price)2.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7.0% vs 1.2%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.21% → 23%
News mood ⓘNews mood, the average tone of recent news (75 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The regulated utility gains scale from recent customer additions in high-growth regions but stays limited by regulatory rate caps and negative free cash flow.
Main risk: Delays or shortfalls in regulatory rate approvals for the new Texas assets could prevent timely conversion of infrastructure spending into higher earnings.
H2O America completed its Texas subsidiary’s acquisition of Quadvest on October 1, more than doubling water and wastewater connections in the state and extending reach into the high-growth Houston area. The move supports long-term scale in a region with strong population trends, yet the regulated model requires rate approvals to convert those assets into higher earnings. Will the added customer base and infrastructure drive returns faster than the integration and financing costs accumulate?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Regulated Water · 64 stocks
Beats the industry median on 3/14 measures
Overall it trails its industry peers.
Valuation
Quality Score28 · Bottom 25%
Fair Value upside−57.0% · Below median
Profitability
Return on equity (12 months)6.5% · Below median
Return on assets2.0% · Below median
Net margin (12 months)12.9% · Above median
Operating margin (12 months)21.3% · Above median
Growth and dividend
Revenue growth (quarter YoY)6.2% · Below median
Dividend yield (12 months)2.7% · Above median
Balance sheet
Debt / equity1.21× · Highest 25%
Valuation Multiplesvs Utilities - Regulated Water median · lower = cheaper
P/E (12 months)24.5× · Pricier than median
P/B1.67× · Pricier than median
P/S (12 months)3.11× · Pricier than median
EV/EBITDA14.0× · Pricier than median
PEG2.68× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)31· sector 32
PAST (return on equity)26· sector 30
HEALTH (low debt)39· sector 68
DIVIDEND (yield)55· sector 50
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "H2O America Fair Value". https://www.fairvalue-calculator.com/stock/HTO
Frequently asked questions
Is H2O America (HTO) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $27.06 versus a price of $62.95, about 57% lower (overvalued).
What is the fair value of HTO?
Our model-based fair value for H2O America is $27.06 (as of Nov 8, 2026), built from audited fundamentals. The current price: $62.95.
What is the quality score of HTO?
H2O America has a Quality Score of 28/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for H2O America (HTO)?
Our model-based price target is the fair value of $27.06 (as of Nov 8, 2026) from 16 valuation models. Cautious scenario $23.56, optimistic scenario $39.27. It is a calculation from audited fundamentals, not an analyst target.
What is the H2O America stock forecast for 2026?
Our models put fair value at $27.06, about 57% lower versus a price of $62.95 (overvalued). Cautious scenario $23.56, optimistic scenario $39.27. The calculation is refreshed regularly with new filings.
What is the revenue of H2O America (HTO)?
H2O America reported trailing-twelve-month revenue of about $829M (latest available figure, as of Nov 8, 2026).
Does H2O America pay a dividend?
H2O America currently shows a dividend yield of 2.73% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of H2O America (HTO) and when is the ex-dividend date?
H2O America pays a dividend of $1.72 per share a year, a dividend yield of 2.7%. The last ex-dividend date was Aug 10, 2026. A dividend has been paid every year since at least 1980. The payout ratio is 66.9% of earnings. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What is the intrinsic value of H2O America (HTO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For H2O America it is $27.06 per share (as of Nov 8, 2026), against a price of $62.95. It is the blended result of 16 valuation models in 6 families (Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is H2O America stock overvalued or undervalued in 2026?
As of Nov 8, 2026, HTO trades above its calculated fair value: price $62.95, fair value $27.06, a gap of about −57% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HTO?
No. The price is what the market pays today ($62.95); the fair value is what the company's own numbers justify ($27.06). For H2O America the two are $35.89 per share apart. That gap is exactly why we show both numbers side by side.
How much is H2O America worth?
The market values H2O America at about $2.6B (market capitalisation, as of Nov 8, 2026). Per share that is $62.95; our models calculate a fair value of $27.06 per share.
What do the bullish and bearish scenarios say about HTO?
Our models span a range for H2O America: cautious scenario $23.56, base $27.06, optimistic $39.27 per share (as of Nov 8, 2026, price $62.95). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HTO?
H2O America trades at a price-to-earnings ratio of 24.5 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $27.06 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2018, FY2019 ex one-offs: 23.8. Other multiples: PEG 2.7, P/B 1.7, P/S 3.1, EV/EBITDA 14.0.
What is the PEG ratio of HTO?
The PEG ratio of H2O America is 2.68 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of H2O America (HTO)?
Balance-sheet figures for H2O America (as of Nov 8, 2026): return on equity 6.5%, debt of 1.21 per unit of equity. They feed the Quality Score of 28/100, which measures business quality independently of the share price.
How far is HTO from its 52-week high?
H2O America trades at $62.95, about 3% below its 52-week high of $64.97 and 45% above the low of $43.43 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $27.06 is for.
Which stocks are comparable to H2O America?
From the same area (Utilities) we also value American Water Works Company, Essential Utilities, Inc, Grandblue Environment Co, American States Water Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is H2O America stock attractive at the current price?
The data as of Nov 8, 2026: price $62.95, calculated fair value $27.06 (−57%), Quality Score 28/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HTO calculated?
We run H2O America through 16 models from 6 families: Earnings-Based, Dividend Discount, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $27.06 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. H2O America itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of H2O America (HTO)?
The closing price on Nov 6, 2026 was $62.95. Our model-based fair value is $27.06, about 57% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with H2O America right now?
The price sits above even our optimistic bull case ($39.27). The favourable scenario is already priced in. Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
Where does the earnings growth of H2O America (HTO) come from?
Earnings per share at H2O America grew +2.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.8 %, EBIT margin −2.4 %, tax rate +4.1 %, residual (interest, one-offs) −3.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of H2O America
How large is the market capitalisation of H2O America (HTO)?
The market capitalisation of H2O America is $2.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of H2O America (HTO)?
The price-to-sales ratio of H2O America is 3.11 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of H2O America (HTO)?
Earnings per share at H2O America are $2.57 (price ÷ EPS = P/E 24.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of H2O America (HTO)?
The dividend yield of H2O America is 2.7% (payout 66.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of H2O America (HTO)?
The net margin of H2O America is 12.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of H2O America (HTO)?
The return on equity (ROE) of H2O America is 6.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of H2O America (HTO)?
On an EBIT basis the return on assets of H2O America is 3.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of H2O America (HTO)?
The operating margin of H2O America is 21.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at H2O America (HTO)?
Revenue at H2O America is growing +6.2% versus a year earlier (3y avg +8.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at H2O America (HTO)?
Earnings per share at H2O America are growing −12.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does H2O America (HTO) generate?
The free cash flow of H2O America is −$278M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does H2O America (HTO) carry?
The net debt of H2O America is $2.0B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 8, 2026