📊 PCYO Key Takeaways
Is Pure Cycle Corp. (PCYO) a Good Investment?
Pure Cycle Corp exhibits a critical disconnect between reported profitability and cash generation—negative operating cash flow (-$1.7M) despite $8.6M net income signals severe earnings quality concerns. Combined with 9.3% revenue decline and zero insider buying, the fundamentals suggest deteriorating business dynamics that the strong balance sheet cannot offset.
Pure Cycle Corp. Key Strengths (PCYO)
- Exceptional net margin of 38.3% and operating margin of 30.0%
- Strong balance sheet with minimal leverage (0.09x debt/equity) and $151.6M stockholders' equity
- Solid gross margin of 59.1% indicating pricing power and operational efficiency
PCYO Stock Risks: Pure Cycle Corp. Investment Risks
- Operating cash flow negative (-$1.7M) while net income positive ($8.6M)—major earnings quality red flag suggesting non-cash charges or aggressive revenue recognition
- Revenue contracted 9.3% YoY indicating business shrinkage in a typically stable water supply sector
- Free cash flow deeply negative (-$1.9M, -8.2% margin) raises questions about sustainability and dividend-paying capacity
- EPS growth (12.5%) driven by share count reduction, not operational performance improvements
- Critically low capital expenditure ($132K) for a water supply utility suggests either distress or data quality issues
Key Metrics to Watch
- Operating cash flow trajectory and reconciliation of net income vs. cash earnings
- Revenue growth stabilization and customer retention trends
- Working capital changes explaining cash conversion deficit
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. appears fundamentally strong 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 |
|---|---|---|---|
| Q3 2026 | $5.1M | $2.3M | $0.09 |
| 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 |
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 grade of C with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PCYO's key strengths?
Claude: Exceptional net margin of 38.3% and operating margin of 30.0%. Strong balance sheet with minimal leverage (0.09x debt/equity) and $151.6M stockholders' equity.
What are the risks of investing in PCYO?
Claude: Operating cash flow negative (-$1.7M) while net income positive ($8.6M)—major earnings quality red flag suggesting non-cash charges or aggressive revenue recognition. Revenue contracted 9.3% YoY indicating business shrinkage in a typically stable water supply sector.
What is PCYO's revenue and growth?
Pure Cycle Corp. reported revenue of $22.5M.
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 $0.36.
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 grade reflects both perspectives for balanced insights.
What is PCYO's fundamental grade?
Based on our AI fundamental analysis in August 2026, Pure Cycle Corp. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PCYO stock overvalued or undervalued?
Valuation metrics for PCYO: ROE of 5.7% (sector avg: 10%), net margin of 38.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is PCYO's AI grade for 2026?
Our dual AI analysis gives Pure Cycle Corp. a combined C grade 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 $-1.7M, with capital expenditures of $132.0K. FCF margin is -8.2%.
How does PCYO compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 38.3% (avg: 12%), ROE 5.7% (avg: 10%), current ratio 1.53 (avg: 0.8).