Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
H2O America's 3-Year RORE % for the quarter that ended in Mar. 2026 was 7.03%.
The industry rank for H2O America's 3-Year RORE % or its related term are showing as below:
HTO's 3-Year RORE % is ranked better than 50.31% of 491
companies
in the Utilities - Regulated industry
Industry Median: 6.95
vs HTO: 7.03
H2O America (NAS:HTO) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
H2O America 3-Year RORE % Related Terms
H2O America 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for H2O America's 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where H2O America's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
H2O America (HTO) has a 3-Year RORE % of 7.03 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on H2O America and its competitors. According to the industry distribution chart, H2O America ranks #244 out of 491 companies in the Utilities - Regulated industry, placing it in the top 49.7%.
Is H2O America's 3-Year RORE % too high?
H2O America's current 3-Year RORE % is 7.03. The Utilities - Regulated industry median 3-Year RORE % is 6.95. H2O America's value of 7.03 is 1.2% above this industry median. Based on the distribution chart, H2O America ranks #244 out of 491 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 3-Year RORE % compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #244 out of 491 companies for 3-Year RORE %. This puts H2O America in the upper half of its industry. The industry median 3-Year RORE % is 6.95. H2O America's value of 7.03 is 1.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Utilities - Regulated company?
The median 3-Year RORE % among Utilities - Regulated companies is 6.95, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current 3-Year RORE % of 7.03 is 1.2% above 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median 3-Year RORE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current 3-Year RORE % is 7.03. 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 RORE % is 7.03 and 1.2% above the Utilities - Regulated industry median of 6.95. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For H2O America (HTO), the current 3-Year RORE % is 7.03 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:
3-Year RORE %: 7.03
GF Value™: $57.40 vs. price of $60.66 (5.7% above fair value)
Industry Position: 1.2% above the Utilities - Regulated median (#244 of 491)
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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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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