HTOH2O America
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.5×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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
- Cash conversion
- 1.53×
Cash conversion · 1.16× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.