NasdaqCM:PCYO

Stock Analysis Report

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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. More Details

Rewards

Trading at 77.6% below our estimate of its fair value

Earnings grew by 38.7% over the past year

Risk Analysis

No risks detected for PCYO from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PCYO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

PCYO

-0.4%

US Water Utilities

2.8%

US Market


1 Year Return

-21.2%

PCYO

13.2%

US Water Utilities

20.9%

US Market

Return vs Industry: PCYO underperformed the US Water Utilities industry which returned 13.2% over the past year.

Return vs Market: PCYO underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

PCYOIndustryMarket
7 Day-2.6%-0.4%2.8%
30 Day11.3%3.7%11.1%
90 Day0.3%7.9%6.5%
1 Year-21.2%-21.2%15.2%13.2%23.6%20.9%
3 Year45.0%45.0%51.2%42.8%47.3%37.6%
5 Year108.7%108.7%135.6%113.4%94.3%72.9%

Long-Term 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

Valuation

Is Pure Cycle undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCYO ($9.79) is trading below our estimate of fair value ($43.67)

Significantly Below Fair Value: PCYO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PCYO is poor value based on its PE Ratio (34.6x) compared to the US Water Utilities industry average (33.5x).

PE vs Market: PCYO is poor value based on its PE Ratio (34.6x) compared to the US market (19.7x).


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 (2.8x) compared to the US Water Utilities industry average (2.4x).


Next Steps

Future Growth

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

9.9%

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

Past Performance

How has Pure Cycle performed over the past 5 years?

74.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCYO has high quality earnings.

Growing Profit Margin: PCYO's current net profit margins (26.1%) are higher than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: PCYO has become profitable over the past 5 years, growing earnings by 74.7% per year.

Accelerating Growth: PCYO's earnings growth over the past year (38.7%) is below its 5-year average (74.7% per year).

Earnings vs Industry: PCYO earnings growth over the past year (38.7%) exceeded the Water Utilities industry 10.8%.


Return on Equity

High ROE: PCYO's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Pure Cycle's financial position?


Financial Position Analysis

Short Term Liabilities: PCYO's short term assets ($26.0M) exceed its short term liabilities ($6.2M).

Long Term Liabilities: PCYO's short term assets ($26.0M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: PCYO is debt free.

Reducing Debt: PCYO had no debt 5 years ago.

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


Next Steps

Dividend

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


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.


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

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

15.7yrs

Average board tenure


CEO

Mark Harding (57 yo)

15.58yrs

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 was Chief Financial Officer at Pure Cycle C...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD973.17K) is about average for companies of similar size in the US market ($USD1.10M).

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


Board Members

NamePositionTenureCompensationOwnership
Mark Harding
President15.58yrsUS$973.17k2.92%
$ 6.8m
Richard Guido
Independent Director16.75yrsUS$52.85k0.040%
$ 93.0k
Peter Howell
Independent Director15.67yrsUS$50.85k0.074%
$ 173.2k
Harrison Augur
Independent Chairman of the Board19.58yrsUS$51.35k0.49%
$ 1.1m
Arthur Epker
Independent Director13.25yrsUS$47.85k0.061%
$ 142.0k
Patrick Beirne
Director4.83yrsUS$43.35k0.0084%
$ 19.6k
Jeffrey Sheets
Independent Director0.83yrno data0.0084%
$ 19.6k

15.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PCYO's board of directors are seasoned and experienced ( 15.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$233.670m
  • Shares outstanding: 23.87m
  • Website: https://www.purecyclewater.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCYONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:20
End of Day Share Price2020/11/27 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.