Is H2O AMERICA (HTO) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 81.2% / 30% | 0.8% / 30% | 5.8% / 30% | 1.25% / 5% | ✗ NOT HALAL |
| DJIM | 81.2% / 33% | 0.8% / 33% | 5.8% / 33% | 1.25% / 5% | ✗ NOT HALAL |
| MSCI | 38.4% / 33% | 0.4% / 33% | 2.8% / 33% | 1.25% / 5% | ✗ NOT HALAL |
| S&P | 81.2% / 33% | 0.8% / 33% | 5.8% / 33% | 1.25% / 5% | ✗ NOT HALAL |
| FTSE | 38.4% / 33% | 0.4% / 33% | 2.8% / 50% | 1.25% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 57.0% | |
| Operating Margin | 19.7% | |
| Net Margin | 12.8% | |
| Return on Equity (ROE) | 7.1% | |
| Return on Assets (ROA) | 2.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $245M |
| Free Cash Flow | -$278M |
| Total Debt | $2.0B |
| Debt-to-Equity | 128.3 |
| Current Ratio | 0.7 |
| Total Assets | $5.1B |
Price & Trading
| Last Close | $57.91 |
| 50-Day MA | $54.85 |
| 200-Day MA | $50.75 |
| Avg Volume | 455K |
| Beta | 0.5 |
|
52-Week Range
$43.75
| |
About H2O AMERICA (HTO)
H2O America, through its subsidiaries, provides water utility and other related services in the United States. The company engages in production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from Valley Water District. It also offers non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services, sewer operations, and other water related services; and a Linebacker protection plan for public drinking water customers in Connecticut and Maine. In addition, the company provides water services; owns undeveloped land in California; and commercial properties and parcels of land in Connecticut. The company was formerly known as SJW Group and changed its name to H2O America in May 2025. H2O America was incorporated in 1985 and is headquartered in San Jose, California.
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Frequently Asked Questions
Is H2O AMERICA (HTO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), H2O AMERICA is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is H2O AMERICA's debt ratio?
H2O AMERICA's debt ratio is 81.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 38.4%.
What are H2O AMERICA's key financial metrics?
H2O AMERICA has a market capitalization of $2.4B, trailing P/E ratio of 19.9, and revenue of $801M. The company maintains a gross margin of 57.0% and a net margin of 12.8%. Return on equity stands at 7.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.