📊 PCYO Key Takeaways
Is Pure Cycle Corp. (PCYO) a Good Investment?
Pure Cycle demonstrates paradoxical fundamentals with strong profitability margins (39.6% net margin) masking severe operational deterioration. The company is burning cash (-$5.3M free cash flow) despite reported profits, revenue is contracting 9.3% YoY, and return metrics are deeply depressed (3.8% ROE, 3.4% ROA), indicating the asset-heavy business model is not generating sustainable returns.
Why Buy Pure Cycle Corp. Stock? PCYO Key Strengths
- Exceptional net margin of 39.6% and operating margin of 32.5% in water utility sector
- Fortress balance sheet with minimal leverage (0.05x debt/equity) and $148.7M stockholders' equity
- Low absolute debt burden of $8.0M provides financial flexibility
PCYO Stock Risks: Pure Cycle Corp. Investment Risks
- Negative operating cash flow of -$5.2M and free cash flow of -$5.3M despite reported profitability—critical disconnect suggesting unsustainable business dynamics
- Revenue declining 9.3% YoY with flat net income growth; declining top line in utility sector is structurally problematic
- Severely depressed return on equity (3.8%) and return on assets (3.4%) indicate capital inefficiency; high asset base ($166.6M) generating minimal shareholder value
- Borderline liquidity with only $4.8M cash against ongoing negative cash burn
Key Metrics to Watch
- Operating cash flow trend—must turn positive to validate business sustainability
- Revenue stabilization and growth trajectory in core water supply operations
- Working capital changes and receivables aging to diagnose cash conversion dysfunction
Pure Cycle Corp. (PCYO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Pure Cycle Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PCYO Profit Margin, ROE & Profitability Analysis
PCYO vs Utilities Sector: How Pure Cycle Corp. Compares
How Pure Cycle Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pure Cycle Corp. Stock Overvalued? PCYO Valuation Analysis 2026
Based on fundamental analysis, Pure Cycle Corp. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pure Cycle Corp. Balance Sheet: PCYO Debt, Cash & Liquidity
PCYO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pure Cycle Corp.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.48 reflects profitable operations.
PCYO Revenue Growth, EPS Growth & YoY Performance
PCYO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.0M | $809.0K | $0.03 |
| Q1 2026 | $5.8M | $3.9M | $0.16 |
| Q3 2025 | $5.1M | $2.3M | $0.09 |
| Q2 2025 | $3.2M | $118.0K | $0.00 |
| Q1 2025 | $5.4M | $2.1M | $0.09 |
| Q3 2024 | $6.9M | $2.8M | $0.12 |
| Q2 2024 | $3.0M | $118.0K | $0.00 |
| Q1 2024 | $1.3M | $159.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pure Cycle Corp. Dividends, Buybacks & Capital Allocation
PCYO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pure Cycle Corp. (CIK: 0000276720)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PCYO
What is the AI rating for PCYO?
Pure Cycle Corp. (PCYO) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCYO's key strengths?
Claude: Exceptional net margin of 39.6% and operating margin of 32.5% in water utility sector. Fortress balance sheet with minimal leverage (0.05x debt/equity) and $148.7M stockholders' equity.
What are the risks of investing in PCYO?
Claude: Negative operating cash flow of -$5.2M and free cash flow of -$5.3M despite reported profitability—critical disconnect suggesting unsustainable business dynamics. Revenue declining 9.3% YoY with flat net income growth; declining top line in utility sector is structurally problematic.
What is PCYO's revenue and growth?
Pure Cycle Corp. reported revenue of $14.3M.
Does PCYO pay dividends?
Pure Cycle Corp. does not currently pay dividends.
Where can I find PCYO SEC filings?
Official SEC filings for Pure Cycle Corp. (CIK: 0000276720) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PCYO's EPS?
Pure Cycle Corp. has a diluted EPS of $0.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PCYO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Pure Cycle Corp. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PCYO stock overvalued or undervalued?
Valuation metrics for PCYO: ROE of 3.8% (sector avg: 10%), net margin of 39.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy PCYO stock in 2026?
Our dual AI analysis gives Pure Cycle Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PCYO's free cash flow?
Pure Cycle Corp.'s operating cash flow is $-5.2M, with capital expenditures of $132.0K. FCF margin is -37.2%.
How does PCYO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 39.6% (avg: 12%), ROE 3.8% (avg: 10%), current ratio 1.39 (avg: 0.8).