H2O America
HTO Utilities Utilities Regulated Water
H2O America’s revenue for fiscal 2025 (year ended December 2025) was $800.6 million, up 6.97% from fiscal 2024. In the quarter to June 2026, revenue grew 6.16%, EPS fell 9.86%, free cash flow grew 14.1% and total debt rose 1.04%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for ten, operating cash flow growth for five; insiders bought in the last twelve months.
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H2O America (HTO) Beneish M-score
H2O America's Beneish M-score for fiscal 2025 is −2.72; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.72 | (0.20) |
| FY2024 | −2.52 | (0.11) |
| FY2023 | −2.41 | 0.12 |
| FY2022 | −2.53 | 0.02 |
| FY2021 | −2.55 | (0.20) |
| FY2020 | −2.36 | (2.50) |
| FY2019 | 0.14 | 3.01 |
| FY2018 | −2.87 | (0.10) |
| FY2017 | −2.77 | (0.05) |
| FY2016 | −2.72 | (0.01) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.83 | — | 0.77 | |
| Gross margin index | 1.00 | — | 0.53 | |
| Asset quality index | 0.95 | — | 0.38 | |
| Sales growth index | 1.07 | — | 0.95 | |
| Depreciation index | 1.07 | — | 0.12 | |
| SG&A index | 1.06 | — | −0.18 | |
| Total accruals to total assets | (0.03) | — | −0.13 | |
| Leverage index | 0.98 | — | −0.32 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.72 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| CWCO Consolidated Water Co. Ltd. compare | −3.2× |
| HTO H2O America | −2.7× |
| ARTNA Artesian Resources Corporation compare | −2.7× |
| CDZI Cadiz, Inc. compare | −2.6× |
| AWR American States Water Company compare | −2.5× |
| MSEX Middlesex Water Company compare | −2.5× |
| CWT California Water Service Group compare | −2.5× |
| YORW The York Water Company compare | −2.4× |
| WTRG Essential Utilities Inc. compare | −2.3× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI