Pure Cycle
Market Cap
US$301.5m
Last Updated
2020/01/21 23:51 UTC
Data Sources
Company Financials
Executive Summary
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.
Rewards
Risk Analysis
No risks detected for PCYO from our risk checks.
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Pure Cycle's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PCYO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
PCYO
5.2%
US Water Utilities
0.8%
US Market
1 Year Return
37.1%
PCYO
38.2%
US Water Utilities
25.1%
US Market
Return vs Industry: PCYO matched the US Water Utilities industry which returned 36.8% over the past year.
Return vs Market: PCYO exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| PCYO | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 5.2% | 0.8% |
| 30 Day | 0.5% | 7.6% | 3.1% |
| 90 Day | 17.6% | 6.7% | 10.9% |
| 1 Year | 37.1%37.1% | 40.7%38.2% | 27.7%25.1% |
| 3 Year | 141.0%141.0% | 85.8%75.0% | 51.3%41.6% |
| 5 Year | 173.2%173.2% | 140.1%115.4% | 77.2%57.6% |
Price Volatility Vs. Market
How volatile is Pure Cycle's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Based On Its ROE, Is Pure Cycle Corporation (NASDAQ:PCYO) A High Quality Stock?3 months ago | Simply Wall St
Pure Cycle (NASDAQ:PCYO) Shareholders Booked A 77% Gain In The Last Three Years4 months ago | Simply Wall St
Does Pure Cycle Corporation's (NASDAQ:PCYO) CEO Salary Compare Well With Others?Valuation
Is Pure Cycle undervalued compared to its fair value and its price relative to the market?
35.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PCYO ($12.42) is trading below our estimate of fair value ($19.61)
Significantly Below Fair Value: PCYO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PCYO is good value based on its PE Ratio (29.8x) compared to the Water Utilities industry average (35.5x).
PE vs Market: PCYO is poor value based on its PE Ratio (29.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PCYO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PCYO is overvalued based on its PB Ratio (3.7x) compared to the US Water Utilities industry average (2.8x).
Next Steps
Future Growth
How is Pure Cycle forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
15.4%
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.
Next Steps
- Examine whether Pure Cycle is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Utilities industry.
Past Performance
How has Pure Cycle performed over the past 5 years?
50.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PCYO has high quality earnings.
Growing Profit Margin: PCYO's current net profit margins (35.8%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: PCYO has become profitable over the past 5 years, growing earnings by 50.7% per year.
Accelerating Growth: PCYO's earnings growth over the past year (767.9%) exceeds its 5-year average (50.7% per year).
Earnings vs Industry: PCYO earnings growth over the past year (767.9%) exceeded the Water Utilities industry 1%.
Return on Equity
High ROE: PCYO's Return on Equity (12.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Pure Cycle's financial position?
Financial Position Analysis
Short Term Liabilities: PCYO's short term assets ($27.9M) exceed its short term liabilities ($7.5M).
Long Term Liabilities: PCYO's short term assets ($27.9M) exceed its long term liabilities ($820.9K).
Debt to Equity History and Analysis
Debt Level: PCYO is debt free.
Reducing Debt: PCYO has no debt compared to 5 years ago when its debt to equity ratio was 6%.
Debt Coverage: PCYO has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: PCYO has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: PCYO has a high level of physical assets or inventory.
Debt Coverage by Assets: PCYO's debt is covered by short term assets (assets are 1.0065120387656E+18x debt).
Next Steps
Dividend
What is Pure Cycle's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PCYO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PCYO's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PCYO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Pure Cycle's salary, the management and board of directors tenure and is there insider trading?
15.4yrs
Average board tenure
CEO
Mark Harding (56yo)
14.8yrs
Tenure
US$973,170
Compensation
Mr. Mark W. Harding has been the Chief Executive Officer of Pure Cycle Corporation since April 2005 and also has been its President since April 2001. Mr. Harding has been Chief Financial Officer at Pure Cy ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD973.17K) is below average for companies of similar size in the US market ($USD1.71M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Board Age and Tenure
15.4yrs
Average Tenure
63.5yo
Average Age
Experienced Board: PCYO's board of directors are seasoned and experienced ( 15.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 225,000 |
| Max Price | US$12.25 |
| Entity | Company |
| Shares | 500,000 |
| Max Price | US$10.75 |
| Entity | Company |
| Shares | 15,000 |
| Max Price | US$11.01 |
| Entity | Company |
| Shares | 123,750 |
| Max Price | US$10.24 |
| Entity | Company |
| Shares | 2,965,000 |
| Max Price | US$9.75 |
| Entity | Company |
| Shares | 2,950,000 |
| Max Price | US$9.75 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Mark Harding (56yo)
President
- Tenure: 14.8yrs
- Compensation: US$973.17k
Board Members
Richard Guido (75yo)
Independent Director
- Tenure: 15.9yrs
- Compensation: US$52.85k
Mark Harding (56yo)
President
- Tenure: 14.8yrs
- Compensation: US$973.17k
Peter Howell (70yo)
Independent Director
- Tenure: 14.9yrs
- Compensation: US$50.85k
Harrison Augur (77yo)
Independent Chairman of the Board
- Tenure: 18.8yrs
- Compensation: US$51.35k
Bart Epker (57yo)
Independent Director
- Tenure: 12.4yrs
- Compensation: US$47.85k
Patrick Beirne (55yo)
Director
- Tenure: 4yrs
- Compensation: US$43.35k
Company Information
Pure Cycle Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Pure Cycle Corporation
- Ticker: PCYO
- Exchange: NasdaqCM
- Founded: 1976
- Industry: Water Utilities
- Sector: Utilities
- Market Cap: US$301.533m
- Shares outstanding: 23.84m
- Website: https://www.purecyclewater.com
Number of Employees
Location
- Pure Cycle Corporation
- Building 34
- 34501 East Quincy Avenue
- Watkins
- Colorado
- 80137
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PCYO | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Nov 1978 |
Biography
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 Activities. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of master planned mixed-use community; and oil and gas leasing business. It serves domestic, commercial, and industrial customers in the Denver metropolitan region. The company was founded in 1976 and is based in Watkins, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/21 23:51 |
| End of Day Share Price | 2020/01/21 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/08/31 |
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.