H2O AmericaHTO +1.45%72 Return-on-Tangible-Equity is 7.60% as of Mar. 2026, which is 48% below its 10-year median of 14.61. 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 497 Utilities - Regulated companies, H2O America ranks better than 55.53% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. H2O America's annualized net income for the quarter that ended in Mar. 2026 was $76.1 Mil. H2O America's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,000.7 Mil. Therefore, H2O America's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.60%.
The historical rank and industry rank for H2O America's Return-on-Tangible-Equity or its related term are showing as below:
HTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.25 Med: 14.61 Max: 25.52
Current: 12.18
During the past 13 years, H2O America's highest Return-on-Tangible-Equity was 25.52%. The lowest was 4.25%. And the median was 14.61%.
HTO's Return-on-Tangible-Equity is ranked better than 55.53% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.83
vs HTO: 12.18
H2O America (NAS:HTO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
H2O America Return-on-Tangible-Equity Related Terms
H2O America Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for H2O America's Return-on-Tangible-Equity 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-Equity Comparison
For the Utilities - Regulated Water subindustry, H2O America's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where H2O America's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.60% mean?
H2O America (HTO) has a Return-on-Tangible-Equity of 7.60% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on H2O America and its competitors. This is 48% below median its historical median of 14.61. Over the past decade, H2O America's Return-on-Tangible-Equity has ranged from 4.25 to 25.52. According to the industry distribution chart, H2O America ranks #221 out of 497 companies in the Utilities - Regulated industry, placing it in the top 44.5%.
Is H2O America's Return-on-Tangible-Equity too high?
H2O America's current Return-on-Tangible-Equity of 7.60% is 48% below median its 10-year median of 14.61. Over the past 10 years, this metric has ranged from a low of 4.25 to a high of 25.52. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.83. H2O America's value of 7.60% is 29.8% below this industry median. Based on the distribution chart, H2O America ranks #221 out of 497 companies in the Utilities - Regulated industry, which is above 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-Equity compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #221 out of 497 companies for Return-on-Tangible-Equity. This puts H2O America in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.83. H2O America's value of 7.60% is 29.8% below this benchmark. Historically, H2O America's own Return-on-Tangible-Equity has ranged from 4.25 to 25.52 over the past decade. While the company's 10-year median is 14.61 vs. the industry median of 10.83, 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-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.83, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Return-on-Tangible-Equity of 7.60% is 29.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Return-on-Tangible-Equity is 7.60%, which is 48% below median its own 10-year median of 14.61. 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 $60.66 — trading 5.7% above its estimated fair value. The current Return-on-Tangible-Equity is 7.60%, which is 48% below median its 10-year median of 14.61 and 29.8% below the Utilities - Regulated industry median of 10.83. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For H2O America (HTO), the current Return-on-Tangible-Equity is 7.60% 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 $60.66 is trading 5.7% above its estimated GF Value™ of $57.40.
GuruFocus considers H2O America to be Fairly Valued.
Key valuation signals for HTO:
Return-on-Tangible-Equity: 7.60% (48% below median its 10-year median of 14.61)
GF Value™: $57.40 vs. price of $60.66 (5.7% above fair value)
Industry Position: 29.8% below the Utilities - Regulated median (#221 of 497)
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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