H2O America (HTO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-256.7%

-$95.91

vs $61.19 price

Levered DCF

-$153.54

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.92

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.72×	17.58×	24.29×	33.27×	35.88×	32.11×	86.66×	30.39×
P/B	1.14×	1.21×	1.67×	2.21×	2.09×	2.16×	2.27×	1.33×
P/S	2.2×	2.21×	3.08×	3.96×	3.78×	3.5×	4.81×	2.97×
EV / EBITDA	11.38×	12×	14.33×	16.63×	17.08×	16.28×	25.92×	9.92×
Gross margin	46.7%	56.8%	57.9%	57.5%	55.5%	56.1%	53.3%	52.9%
Operating margin	22.6%	22.8%	22.3%	21.1%	19.4%	20.8%	13.7%	18.5%
Net margin	12.8%	12.6%	12.7%	11.9%	10.5%	10.9%	5.6%	9.7%
Current ratio	0.7×	0.73×	0.58×	0.59×	0.66×	0.36×	0.52×	3.07×
Debt / equity	1.28×	1.34×	1.42×	1.49×	1.54×	1.68×	1.6×	0.6×
Interest coverage	1.99×	2.39×	2.26×	2.26×	2.05×	2.17×	1.81×	3.02×
Dividend yield	3.3%	3.2%	2.3%	1.8%	1.9%	1.8%	1.7%	2.0%
Payout ratio	57.2%	55.5%	56.4%	59.0%	66.4%	59.3%	145.9%	59.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.7%	6.9%	6.9%	6.6%	5.8%	6.7%	2.6%	4.4%
Return on invested capital	3.2%	3.4%	3.3%	3.2%	2.9%	3.2%	1.4%	3.1%
Return on assets	2.0%	2.0%	2.0%	2.0%	1.7%	1.9%	0.7%	2.0%
Free cash flow yield	-15.8%	-11.2%	-4.8%	-3.2%	-5.7%	-5.6%	-2.6%	-4.8%
Earnings yield	5.8%	5.7%	4.1%	3.0%	2.8%	3.1%	1.2%	3.3%
Enterprise value	$3.7B	$3.5B	$3.8B	$4.1B	$3.8B	$3.5B	$3.4B	$1.3B
Net debt / EBITDA	5.99×	6.28×	6.55×	6.66×	7.21×	7.11×	10.65×	0.85×
Cash conversion cycle (days)	0	6	9	24	23	16	12	-3