Stock fact sheet · data as of
H2O America (HTO): fair value, margin of safety and Wheel Score
Ticker symbol HTO · Utilities · Regulated Water · United States · Blend
Is HTO undervalued?
H2O America (HTO) closed at 62.65 on 5 Nov 2026, 69% above the GLS average fair value of 37.06. 5 of the 6 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between GLS Growth (16.67) and Graham Growth (71.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for HTO, so the nightly engine files it under Blend (value score 37, growth score 43, out of 100).
Nine valuation models for HTO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 54.31 | -13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 71.87 | +15% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 26.13 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 16.67 | -73% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 25.60 | -59% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 27.77 | -56% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -70.74 | -213% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 65.80 | +5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
H2O America scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability HTO scores 5.6/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 2.9%, ROE 6.7%, ROA 2.0% - with debt at 1.28 times equity and negative free cash flow.
The dividend yield is 2.78% at a payout ratio of 65%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 5/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.9% |
|---|---|---|---|
| GLS Moat | 5.6 / 10 | ROE | 6.7% |
| Debt / equity | 1.28 | ROA | 2.0% |
| Free-cash-flow yield | -13.2% | Payout ratio | 65% |
| Institutions | 5 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 35: Weak
With a Wheel Score of 35 H2O America sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (174 open interest, 153 a day); and filter 3, below fair value - trades 69% above our fair value; and filter 5, can repay its debt - 7.6 years to repay its debt (over 6); Value (weak) is its weakest part.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 174 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.0M shares a day on a market cap of $3.0B, with a beta of 0.34 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (174 open interest, 153 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 69% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 7.6 years to repay its debt (over 6) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 69% above fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Fair | moat 5.6/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Weak | 153 contracts a day, 174 open interest | |
| Stability | Fair | beta 0.34, $3.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for HTO in the nightly calendar. The shares go ex-dividend on 9 Nov 2026 (0.4400 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Water
The 12 companies below are the closest to H2O America by market cap within the Regulated Water industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CWT California Water Service Group | 49.96 | 25.23 | -98% | 25Weak | $3.1B |
| AWR American States Water Company | 88.61 | 46.34 | -91% | 31Weak | $3.5B |
| MSEX Middlesex Water Company | 59.20 | 28.34 | -109% | 36Weak | $1.1B |
| MSEXP Middlesex Water Company PFD 7% | 492.00 | 134.84 | -265% | 15No options | $822M |
| WTRG Essential Utilities, Inc. | 45.13 | 23.31 | -94% | 26Weak | $12.8B |
| SBS Companhia de Saneamento Básico do Estado de São Paulo - SABESP | 4.62 | 54.10 | +91% | 50Fair | $15.8B |
| YORW The York Water Company | 32.26 | 16.59 | -94% | 28Weak | $524M |
| CWCO Consolidated Water Co. Ltd. | 27.39 | 37.70 | +27% | 45Weak | $439M |
| ARTNA Artesian Resources Corporation | 33.85 | 26.16 | -29% | 19No options | $350M |
| ARTNB Artesian Resources Corporation | 34.92 | 26.62 | -31% | 19No options | $350M |
| CDZIP Cadiz Inc. | 19.41 | 4.42 | -339% | 10No options | $330M |
| CDZI Cadiz Inc. | 3.65 | 0.8873 | -311% | 6Weak | $309M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about HTO
Is HTO undervalued right now?
No: at 62.65 the stock trades 69% above the GLS average fair value of 37.06 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of HTO and what does it mean?
HTO scores 35 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HTO?
37.06 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does H2O America report earnings next?
No upcoming earnings date is recorded for HTO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does HTO have listed options, and how liquid are they?
Yes. The nightly snapshot found 36 listed contracts with 174 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.