Pure Cycle (PCYO) AI Stock Analysis

• Market Cap: $278.49M
• Dividend Yield: N/A
• Average Volume (3M): 44.61K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.67
• Revenue Growth: -9.25%
• EPS Growth: 12.89%
• Country: US
• Employees: 39
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.25
• Shares Outstanding: 24,090,605
• 10 Day Avg. Volume: 47,136
• 30 Day Avg. Volume: 44,609
• PEG Ratio: 0.89
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 9.32
• P/FCF Ratio: 19.77
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 8.77
• Enterprise Value/Gross Profit: 15.47
• Enterprise Value/Ebitda: 11.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $13.00 ▲(14.04% Upside)

Pure Cycle's overall stock score reflects its strong financial health and consistent profitability, supported by a resilient business model. While technical indicators and valuation suggest moderate performance, the company's adaptability and diverse revenue streams provide a solid foundation for future growth.

Positive Factors

Consistent Profitability

Consistent profitability over 25 quarters highlights the company's strong operational efficiency and ability to generate stable earnings, which is crucial for long-term sustainability.

Diverse Revenue Streams

Diverse revenue streams from water services and rentals provide stability and reduce reliance on any single market, enhancing resilience against sector-specific downturns.

Strong Financial Health

Strong financial health with solid profitability and a stable balance sheet ensures the company can withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth, particularly recent declines, could indicate challenges in market expansion and may affect long-term growth prospects.

Regulatory Challenges

Regulatory challenges, such as updated building codes, can delay projects and impact revenue growth, posing a risk to the company's expansion plans.

Higher Costs of Revenue

Increased costs due to tariffs and inflation can pressure profit margins, potentially affecting the company's ability to maintain current profitability levels.

Pure Cycle Business Overview & Revenue Model

Company Description

Pure Cycle Corporation (PCYO) is a water resource management company based in the United States, primarily focused on the development of water supply and wastewater treatment solutions. The company operates in the water utilities sector and specializes in providing high-quality water services to municipalities and residential communities. Its core products and services include water supply, treatment, and distribution, as well as wastewater management, ensuring sustainable and efficient water use in various markets.

How the Company Makes Money

Pure Cycle generates revenue through multiple streams, primarily by charging municipalities and residential developers for water supply and treatment services. The company often enters into long-term contracts with these clients, providing stable and recurring revenue. Additionally, PCYO may earn money through the sale of water rights and by providing consulting services related to water management. Significant partnerships with local governments and developers enhance its market reach and provide opportunities for project-based revenue. The company's earnings are also influenced by regulatory factors and demand for water resources in its operational regions.

Pure Cycle Financial Statement Overview

Summary

Pure Cycle demonstrates strong financial health with solid profitability, a stable balance sheet, and improving cash flow metrics. While revenue growth has been inconsistent, the company's profitability and cash generation capabilities provide a strong foundation for future growth.

Income Statement

The company shows strong profitability with a high net profit margin, particularly in recent years. However, revenue growth has been inconsistent, with a decline in the most recent year. The gross profit margin remains solid, indicating effective cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating low leverage and financial stability. Return on equity has shown improvement, reflecting efficient use of equity capital. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Cash flow performance is strong with significant growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is favorable, suggesting good cash conversion. However, historical fluctuations in free cash flow growth present a potential risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.09M	26.09M	28.75M	14.59M	23.00M	17.13M
Gross Profit	14.78M	16.03M	19.76M	8.04M	16.37M	10.72M
EBITDA	20.19M	20.19M	18.17M	8.58M	14.92M	28.36M
Net Income	13.11M	13.11M	11.61M	4.70M	9.62M	20.11M
Balance Sheet
Total Assets	162.28M	162.28M	147.35M	133.22M	129.23M	117.18M
Cash, Cash Equivalents and Short-Term Investments	21.93M	21.93M	22.11M	26.01M	34.89M	20.12M
Total Debt	6.79M	6.79M	7.04M	7.28M	4.10M	121.00K
Total Liabilities	19.54M	19.54M	17.65M	14.98M	16.23M	14.44M
Stockholders Equity	142.74M	142.74M	129.70M	118.23M	113.00M	102.74M
Cash Flow
Free Cash Flow	3.69M	3.69M	-461.00K	-10.15M	11.78M	560.00K
Operating Cash Flow	13.16M	13.16M	2.21M	-2.34M	17.45M	3.46M
Investing Cash Flow	-9.65M	-9.65M	-4.73M	-9.24M	-6.67M	-2.90M
Financing Cash Flow	-491.00K	-491.00K	-612.00K	2.85M	3.99M	87.00K

Pure Cycle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCYO, the sentiment is Positive. The current price of 11.4 is below the 20-day moving average (MA) of 11.49, above the 50-day MA of 11.20, and above the 200-day MA of 10.65, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 41.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCYO.

Pure Cycle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCYO	73 Outperform	$278.49M	21.55	9.62%	―	-9.25%	12.89%
ARTNA	70 Outperform	$335.34M	14.76	9.25%	3.81%	5.80%	12.33%
YORW	69 Neutral	$489.48M	24.36	8.58%	2.57%	3.63%	-5.82%
CWCO	68 Neutral	$573.85M	34.25	8.10%	1.37%	-17.62%	-54.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GWRS	58 Neutral	$249.55M	53.09	6.30%	3.56%	7.06%	-38.94%
CDZI	55 Neutral	$438.82M	-10.67	-136.36%	―	188.33%	4.12%

Pure Cycle Corporate Events

Pure Cycle Reports Fiscal Year 2025 Financial Results

On November 12, 2025, Pure Cycle Corporation announced its financial results for the fiscal year ending August 31, 2025, reporting a net income of $13.1 million, a 13% increase from the previous year. The company achieved this growth through its strategic partnerships with national homebuilders at Sky Ranch and a significant increase in oil and gas royalty income. Despite a 9% decrease in overall revenue, Pure Cycle’s diversified business model, including land development and water utilities, continues to deliver high-margin recurring revenues, positioning it as a leading land developer in the region.