H2O AmericaHTO +2.71%72 Debt-to-EBITDA is 6.25 as of Mar. 2026, which is 4% below its 10-year median of 6.50. GuruFocus rates HTO with a GF Score™ of 72/100 and a GF Value™ of $57.40 (Fairly Valued). The stock has 9 warning signs investors should review. Among 449 Utilities - Regulated companies, H2O America ranks worse than 73.94% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for H2O America's Debt-to-EBITDA or its related term are showing as below:
HTO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.68 Med: 6.5 Max: 10.75
Current: 5.95
During the past 13 years, the highest Debt-to-EBITDA Ratio of H2O America was 10.75. The lowest was 2.68. And the median was 6.50.
HTO's Debt-to-EBITDA is ranked worse than 73.94% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.97
vs HTO: 5.95
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
H2O America Debt-to-EBITDA Related Terms
H2O America Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for H2O America's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Water subindustry, H2O America's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H2O America Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where H2O America's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
H2O America (HTO) has a Debt-to-EBITDA of 6.25 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on H2O America. This is near median its historical median of 6.50. Over the past decade, H2O America's Debt-to-EBITDA has ranged from 2.68 to 10.75. According to the industry distribution chart, H2O America ranks #332 out of 449 companies in the Utilities - Regulated industry, placing it in the top 73.9%.
Is H2O America's Debt-to-EBITDA too high?
H2O America's current Debt-to-EBITDA of 6.25 is near median its 10-year median of 6.50. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 10.75. The Utilities - Regulated industry median Debt-to-EBITDA is 3.97. H2O America's value of 6.25 is 57.4% above this industry median. Based on the distribution chart, H2O America ranks #332 out of 449 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, H2O America has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H2O America's Debt-to-EBITDA compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #332 out of 449 companies for Debt-to-EBITDA. This places H2O America in the lower half of its industry. The industry median Debt-to-EBITDA is 3.97. H2O America's value of 6.25 is 57.4% above this benchmark. Historically, H2O America's own Debt-to-EBITDA has ranged from 2.68 to 10.75 over the past decade. While the company's 10-year median is 6.50 vs. the industry median of 3.97, H2O America has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 3.97, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Debt-to-EBITDA of 6.25 is 57.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on H2O America. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Debt-to-EBITDA is 6.25, which is near median its own 10-year median of 6.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O America stock overvalued right now?
Based on GuruFocus' analysis, H2O America (HTO) is currently considered Fairly Valued. The stock's GF Value™ is $57.40, compared to a current price of $62.42 — trading 8.7% above its estimated fair value. The current Debt-to-EBITDA is 6.25, which is near median its 10-year median of 6.50 and 57.4% above the Utilities - Regulated industry median of 3.97. H2O America's overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For H2O America (HTO), the current Debt-to-EBITDA is 6.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H2O America (HTO) Overvalued in 2026?
Based on GuruFocus' analysis, H2O America stock appears to be overvalued.
The current stock price of $62.42 is trading 8.7% above its estimated GF Value™ of $57.40.
GuruFocus considers H2O America to be Fairly Valued.
Key valuation signals for HTO:
Debt-to-EBITDA: 6.25 (near median its 10-year median of 6.50)
GF Value™: $57.40 vs. price of $62.42 (8.7% above fair value)
Industry Position: 57.4% above the Utilities - Regulated median (#332 of 449)
No single metric tells the full story. See the HTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O America is a national investor-owned network of local water and wastewater utilities united by one purpose: delivering clean, high-quality water to the communities it calls home. Across approximately 407,000 water and wastewater service connections, the company invests in critical infrastructure to strengthen the water supply for generations to come. Its single reportable segment provides water utility and utility-related services to its customers.
72GF Score
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