Latest Ratios: P/E Ratio 21.0x · EV/EBITDA 13.8x · ROE 7.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.1B | $1.8B | $1.7B | $2.1B | $2.5B | $2.2B | $2.0B | $2.0B | $1.2B | $1.3B | $1.2B |
| Enterprise Value | $4.1B | $3.7B | $3.5B | $3.8B | $4.1B | $3.8B | $3.5B | $3.4B | $1.3B | $1.8B | $1.6B |
| P/E Ratio → | 20.96 | 16.78 | 17.64 | 24.38 | 33.41 | 36.06 | 32.41 | 86.66 | 30.56 | 22.32 | 21.78 |
| P/S Ratio | 2.68 | 2.20 | 2.22 | 3.09 | 3.98 | 3.79 | 3.53 | 4.83 | 2.98 | 3.39 | 3.39 |
| P/B Ratio | 1.43 | 1.14 | 1.21 | 1.68 | 2.22 | 2.10 | 2.17 | 2.28 | 1.33 | 2.85 | 2.73 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 8.75 | 7.21 | 8.48 | 10.84 | 14.86 | 16.74 | 19.13 | 15.61 | 12.99 | 13.06 | 10.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.65 | 4.65 | 5.68 | 6.63 | 6.56 | 6.24 | 8.18 | 3.26 | 4.54 | 4.69 |
| EV / EBITDA | 13.83 | 12.56 | 12.18 | 14.78 | 17.33 | 18.11 | 16.84 | 27.31 | 9.95 | 11.61 | 11.09 |
| EV / EBIT | 22.65 | 18.06 | 19.95 | 24.23 | 29.30 | 30.53 | 28.38 | 53.85 | 17.73 | 14.81 | 14.73 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.7% | 46.7% | 56.8% | 57.9% | 57.5% | 55.5% | 56.1% | 53.3% | 52.9% | 54.7% | 57.6% |
| Operating Margin | 22.6% | 22.6% | 22.8% | 22.3% | 21.1% | 19.4% | 20.8% | 13.7% | 18.5% | 26.2% | 28.7% |
| Net Profit Margin | 12.8% | 12.8% | 12.6% | 12.7% | 11.9% | 10.5% | 10.9% | 5.6% | 9.7% | 15.2% | 15.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.1% | 7.1% | 7.2% | 7.3% | 6.9% | 6.2% | 6.8% | 2.6% | 5.7% | 13.4% | 13.1% |
| ROA | 2.1% | 2.1% | 2.1% | 2.1% | 2.0% | 1.8% | 1.9% | 0.9% | 2.3% | 4.1% | 3.8% |
| ROIC | 4.1% | 4.1% | 4.2% | 3.9% | 3.7% | 3.3% | 3.7% | 2.6% | 5.8% | 8.6% | 8.8% |
| ROCE | 3.9% | 3.9% | 4.1% | 4.0% | 3.9% | 3.6% | 4.0% | 2.5% | 4.6% | 7.4% | 7.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.28 | 1.28 | 1.34 | 1.42 | 1.49 | 1.54 | 1.68 | 1.60 | 0.60 | 0.98 | 1.06 |
| Debt / EBITDA | 6.67 | 6.67 | 6.41 | 6.78 | 6.97 | 7.68 | 7.35 | 11.30 | 4.08 | 2.99 | 3.11 |
| Net Debt / Equity | — | 1.27 | 1.33 | 1.41 | 1.48 | 1.53 | 1.67 | 1.58 | 0.12 | 0.97 | 1.05 |
| Net Debt / EBITDA | 6.60 | 6.60 | 6.37 | 6.75 | 6.92 | 7.63 | 7.33 | 11.19 | 0.85 | 2.94 | 3.07 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.26 | 2.26 | 2.44 | 2.37 | 2.42 | 2.27 | 2.29 | 2.01 | 3.01 | 5.21 | 4.96 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.70 | 0.70 | 0.73 | 0.58 | 0.59 | 0.66 | 0.36 | 0.52 | 3.07 | 0.79 | 1.57 |
| Quick Ratio | 0.70 | 0.70 | 0.73 | 0.58 | 0.59 | 0.66 | 0.36 | 0.52 | 3.07 | 0.13 | 1.57 |
| Cash Ratio | 0.08 | 0.08 | 0.04 | 0.03 | 0.05 | 0.05 | 0.02 | 0.06 | 2.57 | 0.09 | 0.10 |
| Asset Turnover | — | 0.16 | 0.16 | 0.15 | 0.17 | 0.16 | 0.17 | 0.13 | 0.20 | 0.27 | 0.24 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | 3.14 | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.3% | 3.1% | 2.3% | 1.8% | 1.8% | 1.8% | 1.7% | 1.9% | 1.6% | 1.4% |
| Payout Ratio | 57.2% | 57.2% | 55.5% | 56.4% | 59.0% | 66.4% | 59.3% | 145.9% | 59.5% | 36.0% | 31.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 6.0% | 5.7% | 4.1% | 3.0% | 2.8% | 3.1% | 1.2% | 3.3% | 4.5% | 4.6% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.7% | 3.3% | 3.1% | 2.3% | 1.8% | 1.8% | 1.8% | 1.7% | 1.9% | 1.6% | 1.4% |
| Shares Outstanding | — | $36M | $34M | $32M | $30M | $30M | $29M | $29M | $21M | $21M | $21M |
Regulatory lag and dilution
With a forward P/E of 22.10, HTO trades at a premium that appears disconnected from its recent ROE performance, as reported in financial statements, suggesting that investors are pricing in future rate base growth rather than current earnings power or the company's historical dividend yield of 2.7%.
The current valuation reflects a market expectation for successful rate base expansion in the Texas corridor, yet the premium relative to peers warrants caution given the volatility in recent quarterly earnings. Investors should monitor whether the forward P/E remains sustainable if regulatory lag continues to compress the spread between authorized and earned returns.
According to quarterly data, HTO's earned ROE has struggled to exceed 3.0%, significantly trailing typical industry benchmarks for regulated water utilities, which indicates that regulatory lag or operational cost pressures are preventing the company from achieving its full authorized return on equity in its core markets.
The consistent underperformance in ROE suggests that the company is facing structural challenges in timely cost recovery, particularly within the California regulatory environment. This persistent gap may imply that the utility's earnings power is currently constrained by the timing of rate cases rather than underlying operational efficiency.
Based on reported figures, the debt-to-capital ratio has fluctuated near 0.56, while the anomalous 1.28% debt-to-equity ratio suggests a potential reliance on equity financing to manage capital intensity, which may be masking the true leverage profile and diluting long-term shareholder value in the process.
The reliance on equity issuance to fund infrastructure projects appears to be a defensive measure to maintain credit quality, yet it complicates the assessment of the company's true financial leverage. Analysts should investigate whether this capital structure shift is a permanent strategic pivot or a temporary response to high interest rate environments.
As reported in recent financial statements, the dividend payout ratio has shown extreme volatility, reaching as high as 109.6% in 2024Q1, which raises concerns regarding the company's ability to sustain its dividend while simultaneously funding its aggressive capital expenditure program in high-growth service territories.
The erratic payout ratio suggests that the dividend is not currently supported by stable, internally generated cash flows, forcing the company to potentially rely on external financing to maintain distributions. This dynamic warrants further investigation into whether the dividend policy is aligned with the long-term cash flow generation of the regulated asset base.
The most commonly misapplied ratio for HTO is the standard P/E multiple, which fails to account for the non-cash impact of AFUDC and regulatory balancing accounts, as noted in financial filings, thereby obscuring the true cash-generative capacity of the utility's regulated operations compared to industrial peers.
Investors should instead focus on the relationship between rate base growth and authorized ROE, as these are the primary drivers of utility value. Relying on P/E without adjusting for regulatory accounting nuances may lead to an overestimation of earnings quality and a misunderstanding of the company's sensitivity to interest rate cycles.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HTO stock.
H2O America's current P/E ratio is 21.0x. The historical average is 30.3x. This places it at the 37th percentile of its historical range.
H2O America's current EV/EBITDA is 13.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
H2O America's return on equity (ROE) is 7.1%. The historical average is 9.6%.
Based on historical data, H2O America is trading at a P/E of 21.0x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
H2O America's current dividend yield is 2.66% with a payout ratio of 57.2%.
H2O America has 46.7% gross margin and 22.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
H2O America's Debt/EBITDA ratio is 6.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.