H2O AmericaHTO +2.83%73 ROE % is 4.51% as of Mar. 2026, which is 35% below its 10-year median of 6.97. 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 503 Utilities - Regulated companies, H2O America ranks worse than 62.43% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. H2O America's annualized net income for the quarter that ended in Mar. 2026 was $76.1 Mil. H2O America's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,687.4 Mil. Therefore, H2O America's annualized ROE % for the quarter that ended in Mar. 2026 was 4.51%.
The historical rank and industry rank for H2O America's ROE % or its related term are showing as below:
HTO'
s ROE % Range Over the Past 10 Years
Min: 2.63 Med: 6.97 Max: 13.38
Current: 6.77
During the past 13 years, H2O America's highest ROE % was 13.38%. The lowest was 2.63%. And the median was 6.97%.
HTO's ROE % is ranked worse than 62.43% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs HTO: 6.77
H2O America (NAS:HTO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
H2O America ROE % Related Terms
H2O America ROE % Historical Data
* Premium members only.
The historical data trend for H2O America's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's ROE % distribution charts can be found below:
* The bar in red indicates where H2O America's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
H2O America (HTO) has a ROE % of 4.51% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on H2O America and its competitors. This is 35% below median its historical median of 6.97. Over the past decade, H2O America's ROE % has ranged from 2.63 to 13.38. According to the industry distribution chart, H2O America ranks #314 out of 503 companies in the Utilities - Regulated industry, placing it in the top 62.4%.
Is H2O America's ROE % too high?
H2O America's current ROE % of 4.51% is 35% below median its 10-year median of 6.97. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 13.38. The Utilities - Regulated industry median ROE % is 8.62. H2O America's value of 4.51% is 47.7% below this industry median. Based on the distribution chart, H2O America ranks #314 out of 503 companies in the Utilities - Regulated industry, which is below the industry midpoint. 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 ROE % compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #314 out of 503 companies for ROE %. This places H2O America in the lower half of its industry. The industry median ROE % is 8.62. H2O America's value of 4.51% is 47.7% below this benchmark. Historically, H2O America's own ROE % has ranged from 2.63 to 13.38 over the past decade. While the company's 10-year median is 6.97 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current ROE % of 4.51% is 47.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current ROE % is 4.51%, which is 35% below median its own 10-year median of 6.97. 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 ROE % is 4.51%, which is 35% below median its 10-year median of 6.97 and 47.7% below the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For H2O America (HTO), the current ROE % is 4.51% 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:
ROE %: 4.51% (35% below median its 10-year median of 6.97)
GF Value™: $57.40 vs. price of $59.16 (3.1% above fair value)
Industry Position: 47.7% below the Utilities - Regulated median (#314 of 503)
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
ROE % 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 
