H2O America

HTO: Is H2O America Halal?

H2O America

NASDAQUtilitiesUS

$63.55

+0.71%

Market Cap: 2.7B

Compliance Status

Not Halal

Screened on Aug 31, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is H2O America (HTO) halal? Not Halal. Based on AAOIFI screening, H2O America passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates H2O America (HTO) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Aug 31, 2026. Source: https://halalscreener.app/en/stock/HTO

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

71.5% of 30.0% limit

What this means for you

Most scholars advise not holding HTO

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About H2O America

H2O America, operating nationwide via its various subsidiaries, is a key provider of essential water utility and associated services. The company manages the entire water lifecycle, from procuring, storing, and purifying water to its distribution, wholesale, and retail sale, alongside offering wastewater management services. Its water supply is diverse, sourced from groundwater wells, surface water collected through watershed runoff and diversions, reclaimed water, and imported water acquired from the Santa Clara Valley Water District. Beyond its primary utility offerings, H2O America also delivers a suite of non-regulated services. These include the management and maintenance of water systems, various contracted services, leasing opportunities for antenna sites, and other water and sewer operational services. A notable offering is the "Linebacker protection plan," specifically tailored for its public drinking water clients in Connecticut and Maine. The company's extensive service footprint spans several regions. In California, it supplies water to approximately 232,000 connections, benefiting about one million residents in portions of San Jose and Cupertino, as well as the cities of Campbell, Monte Sereno, Saratoga, the Town of Los Gatos, and surrounding unincorporated areas of Santa Clara County. In Connecticut and Maine, H2O America serves roughly 142,000 connections, providing water to an estimated 463,000 individuals across 81 municipalities within an approximate 275-square-mile service area. Additionally, it oversees around 3,000 wastewater connections in Southbury, Connecticut. Further south, in the corridor between San Antonio and Austin, Texas, the company services approximately 29,000 water connections for about 88,000 people across an area exceeding 271 square miles, supplemented by approximately 1,000 wastewater connections. H2O America also holds various real estate assets, including undeveloped land in California and both commercial properties and land parcels situated in Connecticut. The company, which was incorporated in 1985 and is headquartered in San Jose, California, was previously known as SJW Group before officially rebranding to H2O America in May 2025.

Sector: Utilities · Industry: Regulated Water

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 31, 2026

Compliance History

Not Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

Halal Alternatives in Utilities

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Frequently Asked Questions

Is H2O America (HTO) halal to invest in?
H2O America (HTO) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did H2O America get a F compliance rating?
H2O America (HTO) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 71.5% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change H2O America's Shariah verdict?
H2O America's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is H2O America re-screened for Shariah compliance?
H2O America (HTO) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 31, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.