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H2O AmericaHTO +1.41%70 Interest Coverage is 2.38 as of Jun. 2026, which is 1% above its 10-year median of 2.35. GuruFocus rates HTO with a GF Score™ of 70/100 and a GF Value™ of $54.28 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 447 Utilities - Regulated companies, H2O America ranks worse than 68.23% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. H2O America's
Operating Income
for the
three
months ended in Jun. 2026 was $42.8 Mil. H2O America's Interest Expense for the
three
months ended in Jun. 2026 was $-18.0 Mil.
H2O America's interest coverage for the quarter that ended in Jun. 2026 was 2.38.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for H2O America's Interest Coverage or its related term are showing as below:
HTO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.95 Med: 2.35 Max: 4.46
Current: 2.44
HTO's Interest Coverage is ranked worse than 68.23% of 447
companies
in the Utilities - Regulated industry
Industry Median: 3.92
vs HTO: 2.44
H2O America (NAS:HTO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
H2O America Interest Coverage Related Terms
H2O America Interest Coverage Historical Data
* Premium members only.
The historical data trend for H2O America's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HTO vs CWT, AWR, MSEX: Interest Coverage Comparison
For the Utilities - Regulated Water subindustry, H2O America's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Interest Coverage distribution charts can be found below:
* The bar in red indicates where H2O America's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
H2O America (HTO) has a Interest Coverage of 2.38 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on H2O America and its competitors. This is near median its historical median of 2.35. Over the past decade, H2O America's Interest Coverage has ranged from 1.95 to 4.46. According to the industry distribution chart, H2O America ranks #305 out of 447 companies in the Utilities - Regulated industry, placing it in the top 68.2%.
Is H2O America's Interest Coverage too high?
H2O America's current Interest Coverage of 2.38 is near median its 10-year median of 2.35. Over the past 10 years, this metric has ranged from a low of 1.95 to a high of 4.46. The Utilities - Regulated industry median Interest Coverage is 3.92. H2O America's value of 2.38 is 39.3% below this industry median. Based on the distribution chart, H2O America ranks #305 out of 447 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, H2O America has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does H2O America's Interest Coverage compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #305 out of 447 companies for Interest Coverage. This places H2O America in the lower half of its industry. The industry median Interest Coverage is 3.92. H2O America's value of 2.38 is 39.3% below this benchmark. Historically, H2O America's own Interest Coverage has ranged from 1.95 to 4.46 over the past decade. While the company's 10-year median is 2.35 vs. the industry median of 3.92, H2O America has consistently been below 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 Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.92, based on 447 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Interest Coverage of 2.38 is 39.3% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Interest Coverage is 2.38, which is near median its own 10-year median of 2.35. 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 Modestly Overvalued. The stock's GF Value™ is $54.28, compared to a current price of $62.66 — trading 15.4% above its estimated fair value. The current Interest Coverage is 2.38, which is near median its 10-year median of 2.35 and 39.3% below the Utilities - Regulated industry median of 3.92. H2O America's overall GF Score™ is 70/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For H2O America (HTO), the current Interest Coverage is 2.38 as of Jun. 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 $62.66 is trading 15.4% above its estimated GF Value™ of $54.28.
GuruFocus considers H2O America to be Modestly Overvalued.
Key valuation signals for HTO:
Interest Coverage: 2.38 (near median its 10-year median of 2.35)
GF Value™: $54.28 vs. price of $62.66 (15.4% above fair value)
Industry Position: 39.3% below the Utilities - Regulated median (#305 of 447)
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.
70GF Score
Get the complete analysis for HTO
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