Pure Cycle Corporation
Pure Cycle Corporation Fundamental Analysis
Pure Cycle Corporation (PCYO) shows moderate financial fundamentals with a PE ratio of 18.27, profit margin of 46.62%, and ROE of 9.79%. The company generates $0.0B in annual revenue with weak year-over-year growth of -9.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PCYO's fundamental strength across five key dimensions:
Efficiency Score
WeakPCYO struggles to generate sufficient returns from assets.
Valuation Score
ModeratePCYO shows balanced valuation metrics.
Growth Score
ModeratePCYO shows steady but slowing expansion.
Financial Health Score
ExcellentPCYO maintains a strong and stable balance sheet.
Profitability Score
ModeratePCYO maintains healthy but balanced margins.
Key Financial Metrics
Is PCYO Expensive or Cheap?
P/E Ratio
PCYO trades at 18.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PCYO's PEG of 3.29 indicates potential overvaluation.
Price to Book
The market values Pure Cycle Corporation at 1.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.37 times EBITDA. This signals the market has high growth expectations.
How Well Does PCYO Make Money?
Net Profit Margin
For every $100 in sales, Pure Cycle Corporation keeps $46.62 as profit after all expenses.
Operating Margin
Core operations generate 35.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.79 in profit for every $100 of shareholder equity.
ROA
Pure Cycle Corporation generates $8.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pure Cycle Corporation produces operating cash flow of $6.51M, showing steady but balanced cash generation.
Free Cash Flow
Pure Cycle Corporation generates strong free cash flow of $3.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
PCYO converts 1.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PCYO Stacks Against Its Sector Peers
| Metric | PCYO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.27 | 19.69 | Neutral |
| ROE | 9.79% | 936.00% | Weak |
| Net Margin | 46.62% | 8814.00% | Weak |
| Debt/Equity | 0.05 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 1.50 | Strong Liquidity |
| ROA | 8.17% | -6168.00% (disorted) | Weak |
PCYO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pure Cycle Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.07%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
220.30%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-37.08%
Industry Style: Defensive, Dividend, Income
Declining