H2O AmericaHTO +1.46%72 Return-on-Tangible-Asset is 1.67% as of Mar. 2026, which is 32% below its 10-year median of 2.45. 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 510 Utilities - Regulated companies, H2O America ranks worse than 65.1% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. H2O America's annualizedNet Income for the quarter that ended in Mar. 2026 was $76.1 Mil. H2O America's average total tangible assets for the quarter that ended in Mar. 2026 was $4,564.8 Mil. Therefore, H2O America's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 1.67%.
The historical rank and industry rank for H2O America's Return-on-Tangible-Asset or its related term are showing as below:
HTO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.06 Med: 2.45 Max: 4.14
Current: 2.43
During the past 13 years, H2O America's highest Return-on-Tangible-Asset was 4.14%. The lowest was 1.06%. And the median was 2.45%.
HTO's Return-on-Tangible-Asset is ranked worse than 65.1% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.3
vs HTO: 2.43
H2O America (NAS:HTO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
H2O America Return-on-Tangible-Asset Related Terms
H2O America Return-on-Tangible-Asset Historical Data
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The historical data trend for H2O America's Return-on-Tangible-Asset 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.
HTO vs CWT, AWR, MSEX: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Water subindustry, H2O America's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where H2O America's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.67% mean?
H2O America (HTO) has a Return-on-Tangible-Asset of 1.67% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on H2O America and its competitors. This is 32% below median its historical median of 2.45. Over the past decade, H2O America's Return-on-Tangible-Asset has ranged from 1.06 to 4.14. According to the industry distribution chart, H2O America ranks #332 out of 510 companies in the Utilities - Regulated industry, placing it in the top 65.1%.
Is H2O America's Return-on-Tangible-Asset too high?
H2O America's current Return-on-Tangible-Asset of 1.67% is 32% below median its 10-year median of 2.45. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 4.14. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.30. H2O America's value of 1.67% is 49.4% below this industry median. Based on the distribution chart, H2O America ranks #332 out of 510 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 Return-on-Tangible-Asset compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #332 out of 510 companies for Return-on-Tangible-Asset. This places H2O America in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.30. H2O America's value of 1.67% is 49.4% below this benchmark. Historically, H2O America's own Return-on-Tangible-Asset has ranged from 1.06 to 4.14 over the past decade. While the company's 10-year median is 2.45 vs. the industry median of 3.30, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.30, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Return-on-Tangible-Asset of 1.67% is 49.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Return-on-Tangible-Asset is 1.67%, which is 32% below median its own 10-year median of 2.45. 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 $61.67 — trading 7.4% above its estimated fair value. The current Return-on-Tangible-Asset is 1.67%, which is 32% below median its 10-year median of 2.45 and 49.4% below the Utilities - Regulated industry median of 3.30. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For H2O America (HTO), the current Return-on-Tangible-Asset is 1.67% 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 $61.67 is trading 7.4% above its estimated GF Value™ of $57.40.
GuruFocus considers H2O America to be Fairly Valued.
Key valuation signals for HTO:
Return-on-Tangible-Asset: 1.67% (32% below median its 10-year median of 2.45)
GF Value™: $57.40 vs. price of $61.67 (7.4% above fair value)
Industry Position: 49.4% below the Utilities - Regulated median (#332 of 510)
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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