H2O AmericaHTO +2.83%73 Gross Margin % is 59.19% as of Mar. 2026, which is 5% above its 10-year median of 56.44. GuruFocus rates HTO with a GF Score™ of 73/100 and a GF Value™ of $57.40 (Fairly Valued). The stock has 9 warning signs investors should review. Among 489 Utilities - Regulated companies, H2O America ranks better than 85.69% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. H2O America's Gross Profit for the
three
months ended in Mar. 2026 was $108.5 Mil. H2O America's Revenue for the
three
months ended in Mar. 2026 was $183.3 Mil. Therefore, H2O America's Gross Margin % for the quarter that ended in Mar. 2026 was 59.19%.
The historical rank and industry rank for H2O America's Gross Margin % or its related term are showing as below:
HTO'
s Gross Margin % Range Over the Past 10 Years
Min: 52.94 Med: 56.44 Max: 57.94
Current: 56.83
During the past 13 years, the highestGross Margin % of H2O America was 57.94%. The lowest was 52.94%. And the median was 56.44%.
HTO's Gross Margin % is ranked better than 85.69% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs HTO: 56.83
H2O America had a gross margin of 59.19% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for H2O America was 0.50% per year.
H2O America (NAS:HTO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
H2O America had a gross margin of 59.19% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
H2O America Gross Margin % Related Terms
H2O America Gross Margin % Historical Data
* Premium members only.
The historical data trend for H2O America's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Gross Margin % distribution charts can be found below:
* The bar in red indicates where H2O America's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
H2O America (HTO) has a Gross Margin % of 59.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on H2O America and its competitors. This is near median its historical median of 56.44. Over the past decade, H2O America's Gross Margin % has ranged from 52.94 to 57.94. According to the industry distribution chart, H2O America ranks #70 out of 489 companies in the Utilities - Regulated industry, placing it in the top 14.3%.
Is H2O America's Gross Margin % too high?
H2O America's current Gross Margin % of 59.19% is near median its 10-year median of 56.44. Over the past 10 years, this metric has ranged from a low of 52.94 to a high of 57.94. The Utilities - Regulated industry median Gross Margin % is 30.88. H2O America's value of 59.19% is 91.7% above this industry median. Based on the distribution chart, H2O America ranks #70 out of 489 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, H2O America has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H2O America's Gross Margin % compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #70 out of 489 companies for Gross Margin %. This places H2O America in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 30.88. H2O America's value of 59.19% is 91.7% above this benchmark. Historically, H2O America's own Gross Margin % has ranged from 52.94 to 57.94 over the past decade. While the company's 10-year median is 56.44 vs. the industry median of 30.88, 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 Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.88, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Gross Margin % of 59.19% is 91.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Gross Margin % is 59.19%, which is near median its own 10-year median of 56.44. 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 $59.16 — trading 3.1% above its estimated fair value. The current Gross Margin % is 59.19%, which is near median its 10-year median of 56.44 and 91.7% above the Utilities - Regulated industry median of 30.88. H2O America's overall GF Score™ is 73/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For H2O America (HTO), the current Gross Margin % is 59.19% 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 $59.16 is trading 3.1% above its estimated GF Value™ of $57.40.
GuruFocus considers H2O America to be Fairly Valued.
Key valuation signals for HTO:
Gross Margin %: 59.19% (near median its 10-year median of 56.44)
GF Value™: $57.40 vs. price of $59.16 (3.1% above fair value)
Industry Position: 91.7% above the Utilities - Regulated median (#70 of 489)
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.
73GF Score
Get the complete analysis for HTO
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HTO has been successfully added to your 
