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PCYO

Pure Cycle NasdaqCM:PCYO Stock Report

Last Price

US$10.71

Market Cap

US$256.8m

7D

-0.2%

1Y

-29.6%

Updated

10 Aug, 2022

Data

Company Financials
PCYO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

PCYO Stock Overview

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States.

Pure Cycle Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pure Cycle
Historical stock prices
Current Share PriceUS$10.71
52 Week HighUS$16.55
52 Week LowUS$9.46
Beta0.86
1 Month Change3.38%
3 Month Change8.62%
1 Year Change-29.63%
3 Year Change5.94%
5 Year Change49.79%
Change since IPO328.40%

Recent News & Updates

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).

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.

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%).

Shareholder Returns

PCYOUS Water UtilitiesUS Market
7D-0.2%-0.5%1.2%
1Y-29.6%-6.4%-11.6%

Return vs Industry: PCYO underperformed the US Water Utilities industry which returned -7.6% over the past year.

Return vs Market: PCYO underperformed the US Market which returned -13.5% over the past year.

Price Volatility

Is PCYO's price volatile compared to industry and market?
PCYO volatility
PCYO Average Weekly Movement4.2%
Water Utilities Industry Average Movement4.1%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: PCYO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PCYO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197631Mark Hardinghttps://www.purecyclewater.com

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. It operates in two segments, Wholesale Water and Wastewater Services, and Land Development. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of master-planned community; and oil and gas leasing business.

Pure Cycle Fundamentals Summary

How do Pure Cycle's earnings and revenue compare to its market cap?
PCYO fundamental statistics
Market CapUS$256.83m
Earnings (TTM)US$5.88m
Revenue (TTM)US$16.98m

43.7x

P/E Ratio

15.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PCYO income statement (TTM)
RevenueUS$16.98m
Cost of RevenueUS$4.29m
Gross ProfitUS$12.69m
Other ExpensesUS$6.81m
EarningsUS$5.88m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin74.74%
Net Profit Margin34.63%
Debt/Equity Ratio0.9%

How did PCYO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PCYO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PCYO?

Other financial metrics that can be useful for relative valuation.

PCYO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.9x
Enterprise Value/EBITDA34.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does PCYO's PE Ratio compare to its peers?

PCYO PE Ratio vs Peers
The above table shows the PE ratio for PCYO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average47.3x
CWCO Consolidated Water
51xn/aUS$227.6m
GWRS Global Water Resources
74.6x-1.1%US$351.6m
ARTN.A Artesian Resources
29xn/aUS$507.4m
YORW York Water
34.8xn/aUS$615.5m
PCYO Pure Cycle
43.7xn/aUS$256.8m

Price-To-Earnings vs Peers: PCYO is good value based on its Price-To-Earnings Ratio (43.7x) compared to the peer average (47.3x).


Price to Earnings Ratio vs Industry

How does PCYO's PE Ratio compare vs other companies in the Global Water Utilities Industry?

Price-To-Earnings vs Industry: PCYO is expensive based on its Price-To-Earnings Ratio (43.7x) compared to the US Water Utilities industry average (38.3x)


Price to Earnings Ratio vs Fair Ratio

What is PCYO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PCYO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PCYO's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of PCYO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PCYO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PCYO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Pure Cycle forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.2%

Forecasted Utilities industry annual growth in earnings

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.


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  • Examine Pure Cycle's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Pure Cycle performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


54.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PCYO has high quality earnings.

Growing Profit Margin: PCYO's current net profit margins (34.6%) are lower than last year (85%).


Past Earnings Growth Analysis

Earnings Trend: PCYO has become profitable over the past 5 years, growing earnings by 54.1% per year.

Accelerating Growth: PCYO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PCYO had negative earnings growth (-69%) over the past year, making it difficult to compare to the Water Utilities industry average (-2.3%).


Return on Equity

High ROE: PCYO's Return on Equity (5.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Pure Cycle's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PCYO's short term assets ($24.0M) exceed its short term liabilities ($5.3M).

Long Term Liabilities: PCYO's short term assets ($24.0M) exceed its long term liabilities ($2.7M).


Debt to Equity History and Analysis

Debt Level: PCYO has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PCYO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PCYO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PCYO's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

What is Pure Cycle current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PCYO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PCYO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PCYO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PCYO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PCYO has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Mark Harding (59 yo)

21.33yrs

Tenure

US$1,020,500

Compensation

Mr. Mark W. Harding has been the Chief Executive Officer of Pure Cycle Corporation since April 2005 and also has been its President since April 2001. Mr. Harding was Chief Financial Officer at Pure Cycle C...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: PCYO's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pure Cycle Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Pure Cycle Corporation
  • Ticker: PCYO
  • Exchange: NasdaqCM
  • Founded: 1976
  • Industry: Water Utilities
  • Sector: Utilities
  • Implied Market Cap: US$256.833m
  • Shares outstanding: 23.98m
  • Website: https://www.purecyclewater.com

Number of Employees


Location

  • Pure Cycle Corporation
  • Building 34
  • 34501 East Quincy Avenue
  • Watkins
  • Colorado
  • 80137
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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 here.