Pure Cycle Corporation

NasdaqCM:PCYO Stock Report

Market Cap: US$268.8m

Pure Cycle Future Growth

Future criteria checks 0/6

We currently don't have sufficient analyst coverage to forecast growth and revenue for Pure Cycle.

Key information

n/a

Earnings growth rate

n/a

EPS growth rate

Water Utilities earnings growth10.3%
Revenue growth raten/a
Future return on equityn/a
Analyst coverage

None

Last updatedn/a

Recent future growth updates

No updates

Recent updates

Analysis Article • Dec 19

We Like These Underlying Return On Capital Trends At Pure Cycle (NASDAQ:PCYO)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...
Analysis Article • Aug 06

Pure Cycle Corporation's (NASDAQ:PCYO) Business Is Yet to Catch Up With Its Share Price

With a price-to-earnings (or "P/E") ratio of 38.6x Pure Cycle Corporation ( NASDAQ:PCYO ) may be sending very bearish...
Analysis Article • Jul 15

Pure Cycle's (NASDAQ:PCYO) Returns On Capital Are Heading Higher

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Analysis Article • Jun 17

Is Pure Cycle (NASDAQ:PCYO) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Seeking Alpha • Oct 09

Pure Cycle: This Obscure Water Play Is Back In The Buy Zone

Summary Pure Cycle is a Colorado land development and water rights company. Shares had enjoyed a solid run-up in recent years, but have plunged with the turn in the housing market. It's hard to put a precise valuation on Pure Cycle, but there seems to be a reasonable margin of safety from this price. Water stocks have become a big investment theme over the past decade. The world's population continues to grow, and water scarcity is an increasingly pressing problem. Climate change could further accelerate concerns. Absence of reliable clean water is already a huge problem in large parts of the Middle East and Africa. Increasingly, it is proving to be a hazard in developed countries as well, with water scarcity playing a major role in regional economic planning across the Rocky Mountain west as well. Here's where Pure Cycle (PCYO) enters the equation. The company is a Denver-based water utility that offers investors several ways to profit as it addresses water use in the state of Colorado. From the jump, it's important to realize that Pure Cycle is a hard company to value. There's a lot going on here, and much of the company's assets are tilted toward future value rather than delivering profits today. However, the firm's ambitious move into real estate development greatly accelerated the timeline for creating shareholder value out of Pure Cycle's assortment of holdings. Unfortunately, with the housing market now rolling over, investors have cooled on the company's business plan. Shares are off by half from their 2021 peak and are now near 5-year lows: Data by YCharts I'd argue that Pure Cycle's broader business plan still makes sense, though, and that investors willing to ride out the down housing cycle will be rewarded on the other side. What Does Pure Cycle Do? Pure Cycle is a Denver-based land and water resource management company. The firm was founded decades ago to provide water and wastewater services and acquire water rights. Pure Cycle's water rights and land are primarily east of the currently developed Denver metro area. This area moves away from the mountains and into the dry prairie east of the Front Range. Historically, this area has been less attractive for development. However, developable land near the mountains has largely been used up. In addition, the creation of the far larger Denver International Airport in the 1990s far east of the city of Denver proper has pushed development in Pure Cycle's direction. The company smartly bought up a major land parcel during the 2008 housing bust at a discounted price, grabbing 930 acres for just $7.5 million. The Denver housing market, like other sunbelt areas, saw a substantial decline in activity during and shortly after the financial crisis. While Denver didn't make the same sorts of housing headlines as a Phoenix or Las Vegas did, it saw similar internal dynamics. Fast forward a decade and Colorado housing prices leapt to new highs. This put aggressive growth back onto the menu. Pure Cycle was able to position that land purchase, Sky Ranch, into an active homebuilding development site and has begun earning a generous return on its prior investment. In addition to selling lots to homebuilders, Pure Cycle is also retaining some homes of its own in the development to rent out, which will add another cash flow stream. Sky Ranch, 2021. (Google Maps) Traditionally, Pure Cycle's largest source of revenues was from selling water to commercial users such as oil drilling companies. As there are significant amounts of oil and gas industry operations around Denver, this has been a meaningful revenue stream for Pure Cycle. It's never anything dramatic, but half a million dollars of quarterly revenue can help out for a company the size of Pure Cycle. These commercial water revenues largely dried up with the plunge in energy prices in recent years, but 2022 has seen oil and gas activities pick back up. So, how are things looking for Pure Cycle heading into what appears to be a sharp reversal of fortunes for the housing market, both in Colorado and nationally? Pure Cycle: A Small Operating Business Facing A Housing Slowdown Pure Cycle still doesn't have all that much going on in the way of revenues. Here are results from the company's Q3: PCYO quarterly revenues (10-Q) Total revenues were $3.2 million, which was up reasonably from the same period of last year. The underlying water utility is still not generating much revenue though. The company earned less than $100k each from municipal water, and wastewater fees, respectively. Commercial revenues were up sharply, likely in tune with higher oil prices, but even so, $549k of quarterly revenue isn't going to add too much support to the valuation of a $200 million market cap company. The biggest sources of revenue this quarter were from lot sales and water and wastewater tap fees. This is indeed what you expect to see with the Sky Ranch development continuing. However, most investors probably aren't going to be willing to model these housing-related revenues growing in the near-term given the sharp downturn in the housing market that we've seen in recent months. And, as it is, an annualized $13 million of revenues is not a huge number given the market cap here. People have to take a multi-year perspective to holding the stock, as you don't get the present valuation based on 2022 financial results. The long-term value from Pure Cycle's water rights, land holdings, and future water utility business are still there. None of that has changed. But to the extent that people were playing this as a 2022 and 2023 housing story, that seems to be off the table for the time being. If you push back the development timeline, say, five years, you have to recalculate the windfall profits off the land development with a much higher discount rate. How bad is the hit versus today's price? Not so bad, I'd argue. Here's fellow author Safety In Value's sum of the parts work for Pure Cycle from this spring to give one set of ballpark figures: PCYO sotp analysis (SA Author Safety In Value) I'd argue for discounting future water more than that, as there is very little operating business today and the timeline for that becoming monetizable is fairly uncertain. And now we should probably assume some discount to Sky Ranch as well as it will likely take longer to sell -- and perhaps at lower prices -- to account for the sharp downturn in homebuilding and much higher interest rate environment. Still, if we trim Sky Ranch to, say, $300 million and future water to $100 million, that would still leave the total value of the sum of the parts at around $450 million on shares outstanding of 24 million which gets to a net asset value of $19 per share. I doubt PCYO stock will trade at fair value as there is uncertainty around the timeline to development, future capital allocation decisions, and so on. Institute a dividend and generate more recurring revenues, and maybe the stock trades at calculated NAV. Until then, some discount is in order.
Seeking Alpha • Aug 24

Pure Cycle receives $23.6M from Second Sky Ranch Community Authority Board bond offering

Pure Cycle (NASDAQ:PCYO) reported the Sky Ranch Community Authority Board successfully closed its second municipal bond financing totaling $29.7M, which netted the Sky Ranch CAB $23.6M after fees, capitalized interest, and expenses. After the closing, the Sky Ranch CAB repaid Pure Cycle $23.6M in public improvement reimbursables and associated interest. "Despite a challenging bond market due to rising interest rates, the team at the Sky Ranch CAB together with Phase 2 of the Sky Ranch Development having a superior credit than competing offerings, we were able to close the second bond offering with good terms and above our projected size," commented Mark Harding, President of Pure Cycle.
Seeking Alpha • Jul 11

Pure Cycle GAAP EPS of $0.03, revenue of $3.19M

Pure Cycle press release (NASDAQ:PCYO): Q3 GAAP EPS of $0.03. Revenue of $3.19M (+19.5% Y/Y).
Seeking Alpha • Apr 13

3 Best Real Estate Stocks To Buy Now; I Like PCYO Best

Inflation has reared its ugly head, and interest rate hikes have just begun. Standard long lease REITs will see the value of their cash flow decline. Firms where the value is mostly assets (which should appreciate in value) and less contracted cash flows (which will decline) should do well.
Seeking Alpha • Apr 07

Pure Cycle: 50-70% Conservative NAV, Hard-Asset Company, Lots Of Free Options And Insiders Own 21%

PCYO is an under-the-radar land and water resource company trading at a discount to a conservative NAV (0.5x-0.7x P/NAV). Despite trading at a discount, there are also a ton of free call options attached. This is a good opportunity to invest in hard assets (land, water) at a discount alongside management which owns ~21% (CEO owns ~4%).
Analysis Article • Nov 19

Pure Cycle (NASDAQ:PCYO) Strong Profits May Be Masking Some Underlying Issues

The recent earnings posted by Pure Cycle Corporation ( NASDAQ:PCYO ) were solid, but the stock didn't move as much as...

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pure Cycle has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Earnings and Revenue Growth Forecasts

NasdaqCM:PCYO - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
2/28/20263114-114N/A
11/30/20252914-17N/A
8/31/20252613413N/A
5/31/20252714-17N/A
2/28/2025301418N/A
11/30/2024291319N/A
8/31/2024291202N/A
5/31/2024206-50N/A
2/29/2024197-24N/A
11/30/2023197-10-3N/A
8/31/2023155-10-2N/A
5/31/20232291726N/A
2/28/20231871523N/A
11/30/20222081623N/A
8/31/202223101217N/A
5/31/2022176-11-9N/A
2/28/2022165-13-10N/A
11/30/20211721-6-3N/A
8/31/2021172013N/A
5/31/2021221936N/A
2/28/20212119-14N/A
11/30/2020202-16N/A
8/31/20202671221N/A
5/31/2020259721N/A
2/29/202029101024N/A
11/30/20192810N/A24N/A
8/31/2019205N/A4N/A
5/31/2019152N/A-1N/A
2/28/2019111N/A-2N/A
11/30/201891N/A-5N/A
8/31/201870N/A0N/A
5/31/201840N/A-2N/A
2/28/20183-1N/A-2N/A
11/30/20172-1N/A-1N/A
8/31/20171-2N/A-1N/A
5/31/20171-2N/A-1N/A
2/28/20171-1N/A-1N/A
11/30/20161-1N/A0N/A
8/31/20160-1N/A0N/A
5/31/20160-1N/A-1N/A
2/29/20160-1N/A-1N/A
11/30/20150-1N/A-2N/A
8/31/20151-1N/A-1N/A
5/31/201521N/A-1N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PCYO's forecast earnings growth is above the savings rate (3.5%).

Earnings vs Market: Insufficient data to determine if PCYO's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if PCYO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if PCYO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if PCYO's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PCYO's Return on Equity is forecast to be high in 3 years time

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/13 13:54
End of Day Share Price 2026/05/13 00:00
Earnings2026/02/28
Annual Earnings2025/08/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Pure Cycle Corporation is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.