H2O America Common Stock (HTO)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm looking at a regulated water utility—an essential service with steady demand, though regulation limits excess returns. The filed results show revenue of $805.6 million in fiscal year 2025, the year ended 2025-12-31, up from $678.2 million in fiscal year 2023, the year ended 2023-12-31. Net income was $102.6 million in fiscal year 2025 versus $85.0 million in fiscal year 2023, and diluted EPS rose from $2.68 to $2.92. That is steady, not spectacular. FairStock labels it a stalwart, citing five-year profit growth of 10.8% a year and revenue growth of 8.0%. The balance sheet gives me pause: debt-to-equity is 1.03, FairStock calculations show ROE of 6.46% and ROCE of 2.29%, and trailing free cash flow is negative $271.1 million, a FCF yield of -11.1%. FairStock's Altman Z-score of 0.65 suggests financial stress, while its Piotroski F-score of 6/9 is middling. Valuation is not a bargain. At the 2026-10-13 close of $58.49, FairStock calculations show a P/E of 20.60, P/B of 1.33, PEG of 2.65, EV/EBITDA of 14.19, and a Graham Number of $53.06, implying a -10.23% margin of safety. The 2.81% dividend yield and 0.33 beta are attractive for stability, but the 35/100 FairStock score tells me the price already reflects much of the good news. I would want a wider discount before calling it compelling value.

In plain English: H2O America provides water and wastewater services to homes and businesses. The company is steadily profitable, but it carries a lot of debt and uses more cash than it currently brings in. At the recent price of $58.49, the shares look a little expensive compared with the company's profits and book value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer