H2O America

HTO

Regulated Water · Utilities

Price

$65.43

+1.04 (+1.62%)

Market Cap

$2.29B

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+21.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 29.7M (2021) → 36.0M (2025)

H2O America, through its subsidiaries, provides water utility and other related services in the United States. The company engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Santa Clara Valley Water District. It also offers non-tariffed services, including water system operat

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+2.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

9.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~9 months

$153M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

H2O America has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

63.8%

Premium pricing power — 63.8% gross margin

Operating Margin

20.4%

Excellent — 20.4% operating margin

ROCE

1.0%

Weak — 1.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.5%

Slow sales growth (6.5% YoY)

EPS YoY

-2.0%

Earnings shrinking (-2.0% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

234%

Turns 234% of profit into real cash

FCF Margin

-53.6%

Burning cash (-53.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.02

Elevated debt (1.02)

Interest Cover

2.45x

Tight — interest eats into profit (2.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

22.3x

Growth-priced — P/E 22.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+5.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.3 → 17.0)

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Dividends

Dividend Yield

2.82%

Moderate income — 2.82% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+4.9%

Dividend growing modestly (4.9% YoY)

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