# H2O America (HTO)

> Source: Nexqual · https://nexqual.com/HTO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, H2O America (HTO), nexqual.com/HTO" · informational, not investment advice.

**Price:** USD 58.66 (+4.41% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 56.18 · day 56.62–58.68 · 52w 43.75–67.09 · market cap $2.46B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $836M, net income $107M (12.8% margin) (SEC filings).
- Valuation: P/E 23.0x (avg 19.4x at the last 3 fiscal year-ends), EV/EBITDA 13.9x, net debt $1.79B.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $102K; 1 not under a Rule 10b5-1 plan ($102K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 4 Form 4 filings, $6.3M; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.14 on a 1–5 scale) (7 analysts), mean target USD 65.14 (range 60–72).
- Total return with dividends: 1Y +19.4% vs S&P 500 +14.9%; 5Y -2.5% vs S&P 500 +80.3%.
- Next earnings: 2026-10-26, EPS estimate USD 1.08, revenue estimate $250M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $574M | $621M | $678M | $748M | $806M | $836M |
| Operating income | $111M | $131M | $149M | $171M | $178M | $178M |
| Net income | $60.5M | $73.8M | $85.0M | $94.0M | $103M | $107M |
| EPS (diluted) | $2.03 | $2.43 | $2.68 | $2.87 | $2.92 | — |
| Operating margin | 19.4% | 21.1% | 22.0% | 22.8% | 22.0% | 21.3% |
| Net margin | 10.5% | 11.9% | 12.5% | 12.6% | 12.7% | 12.8% |
| Revenue growth | +1.6% | +8.2% | +9.3% | +10.4% | +7.6% | — |
| Cash + short-term investments | $10.9M | $12.3M | $9.7M | $11.1M | $20.7M | — |
| Total debt | $1.53B | $1.50B | $1.58B | $1.72B | $1.90B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 23.0x · P/S 2.9x · EV/EBITDA 13.9x · EV/Sales 5.1x · P/B 1.3x · Earnings yield 4.36% · Dividend yield (paid, TTM) 2.62% · Net debt $1.79B · EV $4.24B
P/E at fiscal year-ends: Dec 2025 16.8x, Dec 2024 17.2x, Dec 2023 24.3x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-07-01 | Atlas Infrastructure Partners (uk) Ltd. |  | 1,686 | $102K | 0% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
4 purchases, $6.3M. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-07-07 | Atlas Infrastructure Partners (uk) Ltd. |  | 2,784 | $173K | 62.03 | Too little history (no open-market trades in 2023–2025) |
| 2026-07-01 | Atlas Infrastructure Partners (uk) Ltd. |  | 2,132 | $130K | 60.76 | Too little history (no open-market trades in 2023–2025) |
| 2026-04-10 | Gip Atlas Holdings Ltd |  | 50,385 | $3.0M | 59.06 | Too little history (no open-market trades in 2023–2025) |
| 2026-04-10 | Atlas Infrastructure Partners (uk) Ltd. |  | 50,385 | $3.0M | 59.06 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 2.14 on a 1–5 scale), 7 analysts; mean target USD 65.14 (low 60, high 72).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | Barclays | Target lowered | Overweight | $66 → $65 |
| 2026-09-30 | Barclays | Target lowered | Overweight | $67 → $66 |
| 2026-07-29 | Baird | Target raised | Outperform | $67 → $72 |
| 2026-07-15 | Barclays | Target raised | Overweight | $60 → $67 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +19.4% | -2.5% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +19.4% | -0.5% |
| Volatility (annualized) | 23.0% | 24.5% |
| Max drawdown | -14.0% (Jul 2026→Oct 2026) | -41.2% (Dec 2022→Jan 2025) |

## Peers (Utilities - Regulated Water)
CWT (California Water Service Group) USD 47.54 +3.55% · AWR (American States Water Company) USD 85.05 +3.54% · MSEX (Middlesex Water Company) USD 55.8 +4.05% · YORW (The York Water Company) USD 31.69 +3.70% · WTRG (Essential Utilities, Inc.) USD 43.3 +6.28% · CWCO (Consolidated Water Co. Ltd.) USD 28.05 +3.31%

## More
Full page: https://nexqual.com/HTO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in HTO's own 10-K filed 2026-02-26 (https://www.sec.gov/Archives/edgar/data/766829/000162828026012438/hto-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Quadvest | "•successfully managing relationships with our combined customer base and retaining Quadvest's customers;" |

## Company outlook (8-K filed 2026-07-27)

- "Further, we continue to expect to deliver a non-linear adjusted diluted EPS CAGR at or above the top end of the 6-8% range over the 2026-30 period."
- "SJWC estimates the total capital cost of the project to be approximately $176 million."
- "On June 30, 2026, the CPUC approved Advice Letter 629A, which requested an $8.4 million increase in revenue on July 1, 2026 for SJWC's incremental $52.9 million of investments in its Advanced Metering Infrastructure (AMI) project."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.08 | $1.11 | -2.5% | $250.5M | 4 |
| Next quarter (ends 2026-12-31) | $0.51 | $0.49 | +3.3% | $215.3M | 2 |
| Current fiscal year (ends 2026-12-31) | $2.75 | $2.75 | +0.1% | $866.6M | 6 |
| Next fiscal year (ends 2027-12-31) | $2.77 | $2.76 | +0.3% | $928.7M | 5 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-10-26): ±6.8%; last 8 reports averaged ±2.9%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 40.7% | ±6.8% |
| 2026-12-18 | 56 | 27.3% | ±8.9% |
| 2027-03-19 | 147 | 25.6% | ±13.2% |
| 2027-06-17 | 237 | 22.7% | ±14.7% |