Is the business good?
How good a business is HTO?
H2O America earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.0%
Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value
- Operating margin
- 22%
Operating margin · Utilities - Regulated Water median 29% · 12 months to Q1 2026
- Share count, year on year
- +14%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 19% |
| FY2022 | 21% |
| FY2023 | 22% |
| FY2024 | 23% |
| FY2025 | 22% |
Details›
- Operating margin12 months to Q1 2026
- 22%
- Net margin12 months to Q1 2026
- 13%
- Revenue, trailing twelve months
- $816M
- Net income, trailing twelve months
- $105M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.