H2O America (HTO)
Market Price (6/28/2026): $60.7 | Market Cap: $2.3 BilSector: Utilities | Industry: Water Utilities
H2O America (HTO)
Market Price (6/28/2026): $60.7Market Cap: $2.3 BilSector: UtilitiesIndustry: Water Utilities
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.2%, Dividend Yield is 2.6% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 30% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Water Infrastructure. Themes include Water Treatment & Delivery, Wastewater Management, and Desalination. | Trading close to highsDist 52W High is -0.3% Weak multi-year price returns2Y Excs Rtn is -11%, 3Y Excs Rtn is -76% Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 12.77, Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 13% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 75% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -35% Key risksHTO key risks include [1] shareholder dilution from its aggressive, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.2%, Dividend Yield is 2.6% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 30% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Water Infrastructure. Themes include Water Treatment & Delivery, Wastewater Management, and Desalination. |
| Trading close to highsDist 52W High is -0.3% |
| Weak multi-year price returns2Y Excs Rtn is -11%, 3Y Excs Rtn is -76% |
| Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 12.77, Short Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 13% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 75% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -35% |
| Key risksHTO key risks include [1] shareholder dilution from its aggressive, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 6/25/2026
H2O America (HTO) stock has gained about 15% since 2/28/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Financial Results and Positive Outlook.
H2O America (HTO) reported robust financial results for its fiscal Q1 2026, which ended March 31, 2026. The company announced an adjusted diluted earnings per share (EPS) of $0.50, surpassing the analyst consensus estimate of $0.48 by $0.02, representing a 4.17% beat. Additionally, quarterly revenue reached $183.29 million, exceeding the consensus estimate of $176.34 million. These results, reported on April 28, 2026, supported the reaffirmation of the company's 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18, and a long-term EPS Compound Annual Growth Rate (CAGR) target of 6-8% through 2030.
2. Increased Dividend and Extended Payout Streak.
The company demonstrated confidence in its financial health by declaring a quarterly cash dividend of $0.44 per share, payable on March 2, 2026. This dividend represents a 4.8% increase over the prior quarter's payout and extends H2O America's dividend growth streak to 58 years. The annualized dividend for 2026 is projected to be $1.76 per share, an increase from $1.68 per share in 2025.
Show more
H2O America (HTO) stock has gained about 15% since 2/28/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Financial Results and Positive Outlook.
H2O America (HTO) reported robust financial results for its fiscal Q1 2026, which ended March 31, 2026. The company announced an adjusted diluted earnings per share (EPS) of $0.50, surpassing the analyst consensus estimate of $0.48 by $0.02, representing a 4.17% beat. Additionally, quarterly revenue reached $183.29 million, exceeding the consensus estimate of $176.34 million. These results, reported on April 28, 2026, supported the reaffirmation of the company's 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18, and a long-term EPS Compound Annual Growth Rate (CAGR) target of 6-8% through 2030.
2. Increased Dividend and Extended Payout Streak.
The company demonstrated confidence in its financial health by declaring a quarterly cash dividend of $0.44 per share, payable on March 2, 2026. This dividend represents a 4.8% increase over the prior quarter's payout and extends H2O America's dividend growth streak to 58 years. The annualized dividend for 2026 is projected to be $1.76 per share, an increase from $1.68 per share in 2025.
Show more
Updated on 6/25/2026
H2O America (HTO) stock has gained about 15% since 2/28/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Financial Results and Positive Outlook.
H2O America (HTO) reported robust financial results for its fiscal Q1 2026, which ended March 31, 2026. The company announced an adjusted diluted earnings per share (EPS) of $0.50, surpassing the analyst consensus estimate of $0.48 by $0.02, representing a 4.17% beat. Additionally, quarterly revenue reached $183.29 million, exceeding the consensus estimate of $176.34 million. These results, reported on April 28, 2026, supported the reaffirmation of the company's 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18, and a long-term EPS Compound Annual Growth Rate (CAGR) target of 6-8% through 2030.
2. Increased Dividend and Extended Payout Streak.
The company demonstrated confidence in its financial health by declaring a quarterly cash dividend of $0.44 per share, payable on March 2, 2026. This dividend represents a 4.8% increase over the prior quarter's payout and extends H2O America's dividend growth streak to 58 years. The annualized dividend for 2026 is projected to be $1.76 per share, an increase from $1.68 per share in 2025.
3. Positive Regulatory Approvals and Significant Infrastructure Investments.
H2O America benefited from favorable regulatory decisions that support its revenue and infrastructure investments. The Public Utilities Regulatory Authority (PURA) approved a Water Quality Assurance Charge (WQTA) of 0.50% effective April 1, 2026. Furthermore, PURA approved a Water Infrastructure and Conservation Adjustment (WICA) increase of $2.7 million in annualized revenues for $25.7 million in completed projects, effective March 25, 2026. These regulatory outcomes align with the company's ongoing commitment to invest $483 million in infrastructure in 2026, part of a broader $2.7 billion capital plan through 2030.
4. Progress on Strategic Acquisitions and Notable Insider Buying.
The company made progress on strategic growth initiatives, particularly with the pending Quadvest acquisition. As of March 31, 2026, active connections for Quadvest increased by 5%, or 2,800 connections, from year-end 2025, and the backlog grew by 6%, or 5,000 connections, with the acquisition expected to close in the second half of 2026. This operational momentum was accompanied by significant insider buying, as ATLAS Holdings Ltd GIP and ATLAS INFRASTRUCTURE PARTNERS (UK) LTD., both 10% owners, collectively purchased 100,770 shares for an estimated total of $5,951,838 on April 10, 2026.
Show less
H2O America (HTO) stock has gained about 15% since 2/28/2026 because of the following key factors:
1. Strong Fiscal Q1 2026 Financial Results and Positive Outlook.
H2O America (HTO) reported robust financial results for its fiscal Q1 2026, which ended March 31, 2026. The company announced an adjusted diluted earnings per share (EPS) of $0.50, surpassing the analyst consensus estimate of $0.48 by $0.02, representing a 4.17% beat. Additionally, quarterly revenue reached $183.29 million, exceeding the consensus estimate of $176.34 million. These results, reported on April 28, 2026, supported the reaffirmation of the company's 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18, and a long-term EPS Compound Annual Growth Rate (CAGR) target of 6-8% through 2030.
2. Increased Dividend and Extended Payout Streak.
The company demonstrated confidence in its financial health by declaring a quarterly cash dividend of $0.44 per share, payable on March 2, 2026. This dividend represents a 4.8% increase over the prior quarter's payout and extends H2O America's dividend growth streak to 58 years. The annualized dividend for 2026 is projected to be $1.76 per share, an increase from $1.68 per share in 2025.
3. Positive Regulatory Approvals and Significant Infrastructure Investments.
H2O America benefited from favorable regulatory decisions that support its revenue and infrastructure investments. The Public Utilities Regulatory Authority (PURA) approved a Water Quality Assurance Charge (WQTA) of 0.50% effective April 1, 2026. Furthermore, PURA approved a Water Infrastructure and Conservation Adjustment (WICA) increase of $2.7 million in annualized revenues for $25.7 million in completed projects, effective March 25, 2026. These regulatory outcomes align with the company's ongoing commitment to invest $483 million in infrastructure in 2026, part of a broader $2.7 billion capital plan through 2030.
4. Progress on Strategic Acquisitions and Notable Insider Buying.
The company made progress on strategic growth initiatives, particularly with the pending Quadvest acquisition. As of March 31, 2026, active connections for Quadvest increased by 5%, or 2,800 connections, from year-end 2025, and the backlog grew by 6%, or 5,000 connections, with the acquisition expected to close in the second half of 2026. This operational momentum was accompanied by significant insider buying, as ATLAS Holdings Ltd GIP and ATLAS INFRASTRUCTURE PARTNERS (UK) LTD., both 10% owners, collectively purchased 100,770 shares for an estimated total of $5,951,838 on April 10, 2026.
Show less
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Stock Movement Drivers
Fundamental Drivers
The 13.7% change in HTO stock from 2/28/2026 to 6/27/2026 was primarily driven by a 17.3% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 6272026 | Change |
|---|---|---|---|
| Stock Price ($) | 53.38 | 60.69 | 13.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 801 | 816 | 2.0% |
| Net Income Margin (%) | 12.8% | 12.9% | 0.4% |
| P/E Multiple | 18.7 | 21.9 | 17.3% |
| Shares Outstanding (Mil) | 36 | 38 | -5.4% |
| Cumulative Contribution | 13.7% |
Market Drivers
2/28/2026 to 6/27/2026| Return | Correlation | |
|---|---|---|
| HTO | 13.7% | |
| Market (SPY) | 6.6% | -22.1% |
| Sector (XLU) | -2.5% | 37.7% |
Fundamental Drivers
The 32.8% change in HTO stock from 11/30/2025 to 6/27/2026 was primarily driven by a 47.5% change in the company's P/E Multiple.| (LTM values as of) | 11302025 | 6272026 | Change |
|---|---|---|---|
| Stock Price ($) | 45.69 | 60.69 | 32.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 804 | 816 | 1.5% |
| Net Income Margin (%) | 13.6% | 12.9% | -5.3% |
| P/E Multiple | 14.9 | 21.9 | 47.5% |
| Shares Outstanding (Mil) | 36 | 38 | -6.3% |
| Cumulative Contribution | 32.8% |
Market Drivers
11/30/2025 to 6/27/2026| Return | Correlation | |
|---|---|---|
| HTO | 32.8% | |
| Market (SPY) | 7.3% | -18.5% |
| Sector (XLU) | 3.4% | 35.9% |
Fundamental Drivers
The 19.6% change in HTO stock from 5/31/2025 to 6/27/2026 was primarily driven by a 26.3% change in the company's P/E Multiple.| (LTM values as of) | 5312025 | 6272026 | Change |
|---|---|---|---|
| Stock Price ($) | 50.76 | 60.69 | 19.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 767 | 816 | 6.5% |
| Net Income Margin (%) | 12.9% | 12.9% | -0.2% |
| P/E Multiple | 17.4 | 21.9 | 26.3% |
| Shares Outstanding (Mil) | 34 | 38 | -10.9% |
| Cumulative Contribution | 19.6% |
Market Drivers
5/31/2025 to 6/27/2026| Return | Correlation | |
|---|---|---|
| HTO | 19.6% | |
| Market (SPY) | 25.1% | -10.1% |
| Sector (XLU) | 16.0% | 31.5% |
Fundamental Drivers
The -13.3% change in HTO stock from 5/31/2023 to 6/27/2026 was primarily driven by a -18.4% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 5312023 | 6272026 | Change |
|---|---|---|---|
| Stock Price ($) | 70.03 | 60.69 | -13.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 634 | 816 | 28.8% |
| Net Income Margin (%) | 12.8% | 12.9% | 0.2% |
| P/E Multiple | 26.6 | 21.9 | -17.7% |
| Shares Outstanding (Mil) | 31 | 38 | -18.4% |
| Cumulative Contribution | -13.3% |
Market Drivers
5/31/2023 to 6/27/2026| Return | Correlation | |
|---|---|---|
| HTO | -13.3% | |
| Market (SPY) | 81.3% | 7.1% |
| Sector (XLU) | 56.0% | 43.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| HTO Return | 8% | 13% | -18% | -23% | 3% | 24% | -1% |
| Peers Return | 35% | -17% | -14% | -7% | 2% | 7% | -1% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 96% |
Monthly Win Rates [3] | |||||||
| HTO Win Rate | 50% | 58% | 33% | 33% | 58% | 83% | |
| Peers Win Rate | 68% | 45% | 45% | 45% | 45% | 70% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| HTO Max Drawdown | -17% | -22% | -30% | -23% | -20% | -9% | |
| Peers Max Drawdown | -16% | -31% | -28% | -19% | -16% | -11% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: AWK, WTRG, AWR, CWT, MSEX.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/26/2026 (YTD)
How Low Can It Go
| Event | HTO | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -21.3% | -24.5% |
| % Gain to Breakeven | 27.1% | 32.4% |
| Time to Breakeven | 147 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.1% | -33.7% |
| % Gain to Breakeven | 45.1% | 50.9% |
| Time to Breakeven | 324 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -12.4% | -19.2% |
| % Gain to Breakeven | 14.1% | 23.8% |
| Time to Breakeven | 46 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -12.5% | -17.9% |
| % Gain to Breakeven | 14.3% | 21.8% |
| Time to Breakeven | 21 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -16.3% | -15.4% |
| % Gain to Breakeven | 19.5% | 18.2% |
| Time to Breakeven | 165 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -49.9% | -53.4% |
| % Gain to Breakeven | 99.7% | 114.4% |
| Time to Breakeven | 2062 days | 1085 days |
In The Past
H2O America's stock fell -4.3% during the 2025 US Tariff Shock. Such a loss loss requires a 4.5% gain to breakeven.
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| Event | HTO | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -21.3% | -24.5% |
| % Gain to Breakeven | 27.1% | 32.4% |
| Time to Breakeven | 147 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.1% | -33.7% |
| % Gain to Breakeven | 45.1% | 50.9% |
| Time to Breakeven | 324 days | 140 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -49.9% | -53.4% |
| % Gain to Breakeven | 99.7% | 114.4% |
| Time to Breakeven | 2062 days | 1085 days |
In The Past
H2O America's stock fell -4.3% during the 2025 US Tariff Shock. Such a loss loss requires a 4.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About H2O America (HTO)
H2O America (HTO) operates primarily as a public water and wastewater utility service provider across multiple regions in the United States. The company is engaged in the comprehensive management of water resources, including the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. It also provides essential wastewater services, ensuring a full spectrum of water-related infrastructure support for its communities.
Beyond its core water and wastewater services, H2O America offers various non-tariffed services such as water system operations and maintenance agreements, antenna site leases, and contracted sewer operations. The company serves a significant customer base, providing water to approximately 231,000 connections (around one million people) in parts of California, 140,000 connections (around 456,000 people) across Connecticut and Maine, and 24,000 connections (around 70,000 people) in the San Antonio-Austin region of Texas. Additionally, it manages about 3,000 wastewater connections in Southbury, Connecticut.
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Here are a couple of analogies for H2O America (HTO):
- Like a utility company such as Con Edison, but focused on delivering water and managing wastewater services.
- Imagine your local power company, but instead of electricity, they provide water for homes and businesses.
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- Water Utility Services: Provides the production, purchase, storage, purification, distribution, wholesale, and retail sale of water.
- Wastewater Services: Offers services related to the collection, treatment, and disposal of wastewater.
- Water System Operations and Maintenance: Provides non-tariffed services, including operational and maintenance agreements for water systems.
- Antenna Site Leases: Offers non-tariffed services through leasing company-owned land or structures for communication antenna placement.
- Linebacker Protection Plan: Provides a protection plan for public drinking water customers in Connecticut and Maine.
- Real Estate Holdings: Owns undeveloped land, commercial buildings, and warehouse properties for various purposes.
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H2O America (symbol: HTO), operating as SJW Group, primarily provides water utility services to end-users within its service territories. Based on the description, the company primarily sells to individuals and businesses rather than solely to other companies. Its major customer categories include:
- Residential Customers: These include households and individuals residing in the cities and unincorporated territories served across California, Connecticut, Maine, and Texas, who receive water and wastewater services for domestic use.
- Commercial and Industrial Customers: This category encompasses businesses, offices, and industrial facilities located within SJW Group's service areas that utilize water and wastewater services for their operations.
- Other Water Utilities: SJW Group also provides contracted services, such as water system operations, maintenance agreements, and sewer operations, to other water utilities.
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Santa Clara Valley Water District (not a public company)
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H2O America (NASDAQ: HTO) faces several key risks inherent to its operations as a water and wastewater utility provider. These risks primarily stem from the highly regulated nature of its business, its dependence on natural resources, and the significant capital requirements for infrastructure maintenance and development.
The most significant risk is the **regulatory environment and rate-setting process**. As a regulated utility, H2O America's revenues and profitability are largely determined by state regulatory commissions that approve rates for service. Unfavorable regulatory decisions, delays in rate case approvals, or insufficient rate increases to cover operating costs and capital investments could negatively impact the company's financial performance.
A second key risk is related to **water supply and environmental factors**. H2O America relies on diverse sources, including groundwater, surface water from watershed run-off, reclaimed water, and purchased imported water. This dependence makes the company vulnerable to severe drought conditions, which are particularly relevant in its California service areas. Climate change could exacerbate these conditions, leading to water scarcity, restrictions on usage, increased costs for acquiring water from alternative sources, or challenges in meeting demand. Additionally, increasingly stringent environmental regulations regarding water quality, discharge, and resource management could lead to higher compliance costs.
Finally, **infrastructure investment and cost recovery** pose a significant risk. The company operates extensive water and wastewater infrastructure across multiple states and continually invests in its maintenance, upgrades, and expansion, including initiatives like the AMI meter rollout. The substantial capital expenditures required for these projects necessitate the ability to recover these costs through approved customer rates. Failure to secure timely and adequate rate adjustments for infrastructure investments could strain the company's financial resources, impact its ability to maintain service quality, or hinder future growth.
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H2O America (HTO) operates primarily in the water and wastewater utility services sector within the United States. Its addressable markets are defined by the connections and populations it serves across specific regions.
For its water utility services, H2O America serves approximately 231,000 connections, reaching about one million people in various parts of California, including the cities of San Jose, Cupertino, Campbell, Monte Sereno, Saratoga, the Town of Los Gatos, and adjacent unincorporated areas in Santa Clara County.
In Connecticut and Maine, the company provides water service to approximately 140,000 connections, serving around 456,000 people across 81 municipalities within an area of about 269 square miles.
In Texas, H2O America's water services extend to approximately 24,000 connections, serving about 70,000 people in a service area covering approximately 266 square miles, located between San Antonio and Austin.
Additionally, the company manages approximately 3,000 wastewater connections in Southbury, Connecticut.
Cumulatively, H2O America serves approximately 398,000 water and wastewater connections, reaching about 1.5 million people across its service territories in California, Connecticut, Maine, and Texas.
The company also engages in non-tariffed services, including water system operations, maintenance agreements, antenna site leases, contracted services, and a Linebacker protection plan for public drinking water customers in Connecticut and Maine. While these represent additional market segments, the provided information does not offer sufficient detail to quantify their addressable market sizes independently. H2O America also holds undeveloped land in California and Tennessee, and owns and operates commercial buildings and warehouse properties in Tennessee, but the market size for these real estate holdings is not specified in the provided description.
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H2O America (symbol: HTO), formerly known as SJW Group, is expected to drive future revenue growth over the next 2-3 years through several key strategies:
* Rate Base Growth from Capital Investments: As a regulated utility, H2O America consistently invests in critical infrastructure to maintain and improve its water and wastewater systems. These capital investments expand the company's rate base, which is then factored into the rates it is permitted to charge customers, thereby driving revenue growth. The company explicitly states its investment in critical infrastructure to strengthen the water supply and has announced capital investment plans.
* Approved Rate Adjustments for Tariffed Services: As a regulated water and wastewater utility, H2O America is subject to periodic rate adjustments approved by regulatory bodies. These adjustments allow the company to recover costs and earn a return on its investments. Examples include the Maine Water Company's new unified rate structure aimed at benefiting customers, indicating ongoing regulatory processes that lead to revenue adjustments.
* Expansion of Water and Wastewater Utility Services: The rebranding of SJW Group to H2O America signifies its evolution into a "national water and wastewater utility platform". This strategic shift points towards an emphasis on expanding its core water and wastewater services, potentially through organic growth within existing service areas and strategic acquisitions in new markets, thereby increasing its customer base and service connections.
* Growth in Non-Tariffed Services: H2O America offers a range of non-tariffed services beyond its regulated utility operations. These include water system operations, maintenance agreements, antenna site leases, contracted services, sewer operations, and the "Linebacker protection plan" for customers in Connecticut and Maine. Expanding the scope and adoption of these specialized services represents an additional avenue for revenue generation.
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The verification step confirms that H2O America (HTO) is indeed the rebranded name for SJW Group, effective May 6, 2025. This means I should look for information under both names for the 3-5 year period.
Here's a summary of the capital allocation decisions based on the search results:
###
Capital Allocation Decisions for H2O America (HTO)
Share Repurchases
- Information regarding specific dollar amounts of share repurchases made or authorized was not prominently disclosed within the provided search results for the last 3-5 years. However, the company's equity issuance in March 2026 stated that proceeds could be used for "general corporate purposes, which may include acquisitions, capital expenditures, share repurchases or debt repayment," indicating that share repurchases are a potential, but not explicitly planned, capital allocation strategy.
Share Issuance
- In March 2026, H2O America (HTO) commenced an underwritten public offering of 11,484,824 shares of common stock at $53.00 per share, aiming for approximately $588.9 million in net proceeds, or $677.2 million if the underwriters' option is exercised in full. This issuance included both direct sales and forward sale agreements.
- The proceeds from the March 2026 offering are primarily intended to finance the pending Quadvest acquisition and related fees, with additional uses for general corporate purposes such as capital expenditures and debt repayment.
- In 2024, SJW Group (prior to rebranding) engaged in equity issuances totaling $85.008 million to fund capital expenditure programs and refinance existing debt.
Inbound Investments
- No specific large inbound investments by third-parties like strategic partners or private equity firms were identified in the provided search results for the last 3-5 years.
Outbound Investments
- H2O America has pending acquisitions of Quadvest and Cibolo Valley wastewater systems in Texas, with Quadvest expected to close mid-2026 for $540 million. The Cibolo Valley Wastewater Treatment Plant acquisition is targeted for closing in Q4 2026.
- In 2023, SJW Group acquired KT Water Resources, which secured an estimated 6,000 acre-feet of untapped water supply in Comal County, Texas.
Capital Expenditures
- H2O America plans to invest $483 million in capital expenditures in 2026 (excluding Quadvest impacts) and a total of $2.7 billion over the 2026-2030 period (including Quadvest and Cibolo Valley impacts). This represents a 31% increase over the previous 2025-2029 budget.
- The primary focus of these capital expenditures is on infrastructure replacement (including a goal to replace 1% of distribution pipe annually), PFAS remediation (with an estimated $400 million for treatment), additional water supplies, and investments in acquired systems like Quadvest.
- In 2025, H2O America invested $501 million in infrastructure and water supply, exceeding its revised 2025 capital expenditures guidance of $486 million, and representing a 41% increase over 2024 spending. In 2024, SJW Group invested $353 million, surpassing its guidance of $332 million. In 2023, SJW Group invested $272 million, exceeding its guidance of $255 million.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Is H2O America Stock Built to Withstand a Pullback? | 10/17/2025 |
| Title | |
|---|---|
| ARTICLES |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 58.08 |
| Mkt Cap | 3.1 |
| Rev LTM | 914 |
| Op Inc LTM | 194 |
| FCF LTM | -254 |
| FCF 3Y Avg | -198 |
| CFO LTM | 285 |
| CFO 3Y Avg | 244 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.3% |
| Rev Chg 3Y Avg | 7.9% |
| Rev Chg Q | 9.7% |
| QoQ Delta Rev Chg LTM | 2.1% |
| Op Inc Chg LTM | 2.5% |
| Op Inc Chg 3Y Avg | 11.1% |
| Op Mgn LTM | 29.4% |
| Op Mgn 3Y Avg | 29.2% |
| QoQ Delta Op Mgn LTM | -0.2% |
| CFO/Rev LTM | 34.4% |
| CFO/Rev 3Y Avg | 29.8% |
| FCF/Rev LTM | -20.4% |
| FCF/Rev 3Y Avg | -20.4% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Water Utility Services | 787 | 733 | 665 | 615 | 568 |
| Other Services | 13 | 16 | |||
| Unallocated Corporate | 0 | 0 | |||
| All Other | 0 | 0 | |||
| Real Estate Services | 6 | 6 | 5 | ||
| Total | 801 | 748 | 670 | 621 | 574 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Water Utility Services | 150 | 132 | 112 | 121 | 80 |
| Real Estate Services | 3 | 2 | 2 | 2 | 2 |
| All Other | -4 | -3 | -2 | -5 | -24 |
| Total | 149 | 131 | 111 | 118 | 57 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Water Utility Services | 115 | 109 | 99 | 88 | 71 |
| Other Services | 3 | 3 | |||
| Unallocated Corporate | -15 | -18 | |||
| All Other | -16 | -15 | -12 | ||
| Real Estate Services | 2 | 1 | 2 | ||
| Total | 103 | 94 | 85 | 74 | 60 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Water Utility Services | 5,054 | 4,567 | 4,243 | 3,649 | 3,388 |
| Unallocated Corporate | 69 | 66 | |||
| Other Services | 27 | 25 | |||
| All Other | 58 | 64 | 61 | ||
| Real Estate Services | 44 | 43 | 43 | ||
| Total | 5,150 | 4,658 | 4,345 | 3,755 | 3,492 |
Price Behavior
Price Behavior
| Market Price | $60.69 | |
| Market Cap ($ Bil) | 2.3 | |
| First Trading Date | 06/01/1972 | |
| Distance from 52W High | -0.3% | |
| 50 Days | 200 Days | |
| DMA Price | $57.56 | $52.33 |
| DMA Trend | up | indeterminate |
| Distance from DMA | 5.4% | 16.0% |
| 3M | 1YR | |
| Volatility | 24.1% | 23.0% |
| Downside Capture | -68.08 | -25.96 |
| Upside Capture | -15.75 | 2.77 |
| Correlation (SPY) | -19.6% | -11.0% |
HTO Betas & Captures as of 5/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.09 | -0.43 | -0.40 | -0.34 | -0.17 | 0.13 |
| Up Beta | -0.64 | -1.00 | -0.67 | -0.79 | -0.24 | 0.15 |
| Down Beta | 1.80 | 1.29 | -0.64 | -0.58 | -0.50 | -0.09 |
| Up Capture | 26% | -13% | -0% | 20% | 4% | 4% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 10 | 17 | 29 | 65 | 127 | 363 |
| Down Capture | -57% | -50% | -53% | -51% | -18% | 53% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 10 | 23 | 33 | 57 | 121 | 383 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HTO | |
|---|---|---|---|---|
| HTO | 20.8% | 22.9% | 0.75 | - |
| Sector ETF (XLU) | 17.3% | 14.6% | 0.87 | 31.0% |
| Equity (SPY) | 21.2% | 12.4% | 1.26 | -11.7% |
| Gold (GLD) | 21.8% | 27.7% | 0.70 | -6.8% |
| Commodities (DBC) | 21.8% | 18.6% | 0.92 | -9.0% |
| Real Estate (VNQ) | 16.1% | 13.6% | 0.85 | 38.3% |
| Bitcoin (BTCUSD) | -44.2% | 42.5% | -1.25 | -6.0% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HTO | |
|---|---|---|---|---|
| HTO | 1.8% | 24.0% | 0.04 | - |
| Sector ETF (XLU) | 10.9% | 17.3% | 0.48 | 51.9% |
| Equity (SPY) | 13.4% | 17.1% | 0.61 | 18.8% |
| Gold (GLD) | 17.8% | 18.3% | 0.79 | 8.7% |
| Commodities (DBC) | 7.4% | 19.5% | 0.28 | -0.6% |
| Real Estate (VNQ) | 3.4% | 18.9% | 0.08 | 46.1% |
| Bitcoin (BTCUSD) | 10.9% | 54.0% | 0.39 | 5.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with HTO | |
|---|---|---|---|---|
| HTO | 7.1% | 29.5% | 0.28 | - |
| Sector ETF (XLU) | 9.6% | 19.3% | 0.43 | 59.5% |
| Equity (SPY) | 15.2% | 18.0% | 0.72 | 38.5% |
| Gold (GLD) | 11.8% | 16.1% | 0.60 | 9.0% |
| Commodities (DBC) | 5.9% | 18.0% | 0.26 | 8.4% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.23 | 53.0% |
| Bitcoin (BTCUSD) | 54.7% | 66.4% | 0.95 | 8.0% |
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Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | -2.7% | -2.2% | -2.6% |
| 2/25/2026 | -2.1% | 4.9% | 4.9% |
| 10/28/2025 | -5.5% | -3.6% | -5.1% |
| 7/29/2025 | 0.5% | 2.1% | 5.9% |
| 4/28/2025 | 6.1% | 2.5% | -1.8% |
| 2/27/2025 | 0.7% | 4.1% | 2.5% |
| 10/28/2024 | 2.4% | -2.7% | -0.3% |
| 7/25/2024 | -1.3% | -1.5% | -4.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 14 | 13 |
| # Negative | 11 | 10 | 11 |
| Median Positive | 1.0% | 2.7% | 2.7% |
| Median Negative | -1.9% | -3.2% | -4.9% |
| Max Positive | 6.1% | 11.5% | 10.9% |
| Max Negative | -5.5% | -7.5% | -13.3% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | -2.7% | -2.2% | -2.6% |
| 2/25/2026 | -2.1% | 4.9% | 4.9% |
| 10/28/2025 | -5.5% | -3.6% | -5.1% |
| 7/29/2025 | 0.5% | 2.1% | 5.9% |
| 4/28/2025 | 6.1% | 2.5% | -1.8% |
| 2/27/2025 | 0.7% | 4.1% | 2.5% |
| 10/28/2024 | 2.4% | -2.7% | -0.3% |
| 7/25/2024 | -1.3% | -1.5% | -4.9% |
| 4/26/2024 | 0.5% | 4.5% | 2.2% |
| 2/22/2024 | -2.5% | -7.5% | -5.2% |
| 10/30/2023 | 4.3% | 11.5% | 10.9% |
| 7/31/2023 | -1.5% | 0.0% | -5.2% |
| 5/1/2023 | -0.1% | 1.3% | 1.4% |
| 2/23/2023 | 0.6% | -3.8% | -1.8% |
| 10/28/2022 | 1.0% | 1.1% | 5.8% |
| 7/28/2022 | 0.5% | 2.8% | 1.2% |
| 4/28/2022 | -2.8% | -4.4% | 1.3% |
| 2/18/2022 | -0.8% | 0.0% | 3.1% |
| 10/29/2021 | 4.7% | 11.0% | 2.7% |
| 7/30/2021 | 0.1% | 1.1% | 0.8% |
| 4/29/2021 | 1.0% | -0.9% | -0.1% |
| 2/19/2021 | -1.9% | -7.5% | -10.5% |
| 11/5/2020 | -1.6% | 4.6% | 6.6% |
| 8/7/2020 | 1.5% | -1.4% | -13.3% |
| SUMMARY STATS | |||
| # Positive | 13 | 14 | 13 |
| # Negative | 11 | 10 | 11 |
| Median Positive | 1.0% | 2.7% | 2.7% |
| Median Negative | -1.9% | -3.2% | -4.9% |
| Max Positive | 6.1% | 11.5% | 10.9% |
| Max Negative | -5.5% | -7.5% | -13.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/26/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 10/28/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 07/31/2023 | 10-Q |
| 03/31/2023 | 05/01/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 07/29/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/26/2026 | 10-K |
| 09/30/2025 | 10/28/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/29/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 10/28/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 07/31/2023 | 10-Q |
| 03/31/2023 | 05/01/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 07/29/2022 | 10-Q |
| 03/31/2022 | 04/29/2022 | 10-Q |
| 12/31/2021 | 02/28/2022 | 10-K |
| 09/30/2021 | 10/29/2021 | 10-Q |
| 06/30/2021 | 07/30/2021 | 10-Q |
| 03/31/2021 | 04/30/2021 | 10-Q |
| 12/31/2020 | 03/01/2021 | 10-K |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 03/02/2020 | 10-K |
| 09/30/2019 | 11/01/2019 | 10-Q |
| 06/30/2019 | 07/26/2019 | 10-Q |
Recent Forward Guidance
Updated 6/1/2026Latest: Q1 2026 Earnings Reported 4/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Diluted EPS | 3.08 | 3.13 | 3.18 | 0 | Affirmed | Guidance: 3.13 for 2026 | |
| 2026 Adjusted Diluted EPS CAGR | 0.06 | 0.07 | 0.08 | 0 | Affirmed | Guidance: 0.07 for 2026-2030 | |
| 2026 Capital Expenditures | 483.00 Mil | 0 | Affirmed | Guidance: 483.00 Mil for 2026 | |||
| 2030 Capital Expenditures | 2.70 Bil | 0 | Affirmed | Guidance: 2.70 Bil for 2026-2030 | |||
Prior: Q4 2025 Earnings Reported 2/25/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Adjusted Diluted EPS | 3.08 | 3.13 | 3.18 | 5.2% | Higher New | Guidance: 2.98 for 2025 | |
| 2026 Capital Expenditures | 483.00 Mil | -0.6% | Lower New | Guidance: 486.00 Mil for 2025 | |||
| 2026-2030 Capital Expenditures | 2.70 Bil | ||||||
| 2026-2030 Adjusted Diluted EPS CAGR | 0.06 | 0.07 | 0.08 | 16.7% | Raised | Guidance: 0.06 for 2029 | |
Insider Activity
Updated 6/8/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gip, Atlas Holdings Ltd | Direct | Buy | 4222026 | 59.06 | 50,385 | 2,975,919 | 270,657,116 | Form | |
| 2 | Atlas, Infrastructure Partners (uk) Ltd | Direct | Buy | 4132026 | 59.06 | 50,385 | 2,975,919 | 270,657,116 | Form | |
| 3 | Walters, Andrew F | Chief Executive Officer | Direct | Sell | 11142025 | 47.22 | 2,100 | 99,162 | 1,142,346 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gip, Atlas Holdings Ltd | Direct | Buy | 4222026 | 59.06 | 50,385 | 2,975,919 | 270,657,116 | Form | |
| 2 | Atlas, Infrastructure Partners (uk) Ltd | Direct | Buy | 4132026 | 59.06 | 50,385 | 2,975,919 | 270,657,116 | Form | |
| 3 | Walters, Andrew F | Chief Executive Officer | Direct | Sell | 11142025 | 47.22 | 2,100 | 99,162 | 1,142,346 | Form |
Industry Resources
| Utilities Resources |
| Data.gov Energy Infrastructure |
| Data.gov Energy Resources |
| Utility Dive |
| Water Utilities Resources |
| American Water Works Association (AWWA) |
| WaterWorld |
| Water & Wastes Digest (WWD) |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 6/27/2026