H2O AmericaHTO +1.45%72 3-Year ROIIC % is 3.57 as of Dec. 2025, which is 4% below its 10-year median of 3.71. 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 478 Utilities - Regulated companies, H2O America ranks worse than 52.09% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
H2O America's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.57%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for H2O America's 3-Year ROIIC % or its related term are showing as below:
HTO's 3-Year ROIIC % is ranked worse than 52.09% of 478
companies
in the Utilities - Regulated industry
Industry Median: 4.07
vs HTO: 3.57
H2O America (NAS:HTO) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
H2O America 3-Year ROIIC % Related Terms
H2O America 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for H2O America's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where H2O America's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
H2O America (HTO) has a 3-Year ROIIC % of 3.57 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on H2O America and its competitors. This is near median its historical median of 3.71. According to the industry distribution chart, H2O America ranks #249 out of 478 companies in the Utilities - Regulated industry, placing it in the top 52.1%.
Is H2O America's 3-Year ROIIC % too high?
H2O America's current 3-Year ROIIC % of 3.57 is near median its 10-year median of 3.71. The Utilities - Regulated industry median 3-Year ROIIC % is 4.07. H2O America's value of 3.57 is 12.3% below this industry median. Based on the distribution chart, H2O America ranks #249 out of 478 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 3-Year ROIIC % compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #249 out of 478 companies for 3-Year ROIIC %. This places H2O America in the lower half of its industry. The industry median 3-Year ROIIC % is 4.07. H2O America's value of 3.57 is 12.3% below this benchmark. While the company's 10-year median is 3.71 vs. the industry median of 4.07, 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 3-Year ROIIC % for an Utilities - Regulated company?
The median 3-Year ROIIC % among Utilities - Regulated companies is 4.07, based on 478 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current 3-Year ROIIC % of 3.57 is 12.3% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current 3-Year ROIIC % is 3.57, which is near median its own 10-year median of 3.71. 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 3-Year ROIIC % is 3.57, which is near median its 10-year median of 3.71 and 12.3% below the Utilities - Regulated industry median of 4.07. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For H2O America (HTO), the current 3-Year ROIIC % is 3.57 as of Dec. 2025. 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:
3-Year ROIIC %: 3.57 (near median its 10-year median of 3.71)
GF Value™: $57.40 vs. price of $60.66 (5.7% above fair value)
Industry Position: 12.3% below the Utilities - Regulated median (#249 of 478)
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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