H2O America (HTO) is overvalued and Middlesex Water Co (MSEX) is slightly overvalued.
Both trade above our estimate of their intrinsic value. MSEX is the closer of the two: -12%, against -42% for HTO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.7% (average of 3 methods) values the shares at $44.37; the price of $62.92 is 42% above that value, and 84% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $48.83; the price of $54.92 is 12% above that value, and 78% of that value comes from beyond year five.
Leak Score 41/100 on 8 of 12 signals
| Metric | HTO | MSEX |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $62.92 | $54.92 |
| Intrinsic value | $44.37 | $48.83 |
| Margin of safety | -42% | -12% |
| Leak Score | 14/100 (3/12) | 41/100 (8/12) |
| Market cap | $2.6B | $1.0B |
| Revenue growth, 5 years | 7.2% | 6.6% |
| Operating margin | 21.5% | 29.2% |
| Net margin | 12.9% | 23.2% |
| Return on equity | 6.5% | 9.8% |
| Debt to equity | 1.03 | 0.84 |
| P/E | 22.2x | 21.2x |
| Forward P/E | 22.3x | 19.8x |
| P/B | 1.4x | 2.0x |
| Dividend yield | 2.8% | 2.6% |