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Pure Cycle Corp. (PCYO)
NASDAQ:PCYO
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Pure Cycle
(NASDAQ:PCYO)
67Neutral
Pure Cycle (PCYO) vs. S&P 500 (SPY)
Market Cap
$258.35M
Dividend YieldN/A
Average Volume (3M)34.10K
Price to Earnings (P/E)19.2
Beta (1Y)1.07
Revenue Growth56.25%
EPS Growth104.08%
CountryUS
Employees39
SectorUtilities
Sector Strength81
IndustryRegulated Water
Share Statistics
EPS (TTM)0.56
Shares Outstanding24,076,908
10 Day Avg. Volume34,677
30 Day Avg. Volume34,104
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)N/A
Price to Sales (P/S)8.86
Price to Cash Flow (P/CF)11.40
P/FCF Ratio12.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Pure Cycle Business Overview & Revenue Model
Company DescriptionPure Cycle Corporation (PCYO) operates in the water and land resource sectors, focusing on providing innovative solutions for water and wastewater services primarily in Colorado. The company is engaged in a range of activities including the development and management of water rights, and the provision of water and wastewater services to residential and commercial customers. Additionally, Pure Cycle is involved in real estate development, leveraging its land holdings to create sustainable communities.
How the Company Makes MoneyPure Cycle Corporation generates revenue through multiple streams. The primary source of income is the provision of water and wastewater services to its customers, which include residential, commercial, and industrial clients. These services are offered under long-term contracts, providing a stable revenue base. The company also derives income from its real estate activities by developing and selling residential and commercial land parcels. Furthermore, Pure Cycle holds valuable water rights, which it can lease or sell to municipalities and other entities, contributing significantly to its earnings. Strategic partnerships with local governments and real estate developers also play a crucial role in the company's ability to monetize its assets effectively.
Pure Cycle Financial Statement Overview
Summary
Pure Cycle demonstrates strong financial health with robust profitability, a solid balance sheet, and improving cash flow generation. The company exhibits good growth potential, though it faces some volatility in revenue and continued investment outflows that require careful management.Income Statement
Pure Cycle has shown strong revenue growth, with a significant increase from the previous periods. Gross and net profit margins are strong, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, reflecting solid operational performance. However, the revenue growth rate has been volatile over the years, which may indicate potential fluctuations in income streams.78
Positive
Balance Sheet
The balance sheet shows a solid equity base with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The return on equity is healthy, suggesting good returns to shareholders. The equity ratio is strong, demonstrating a high proportion of assets financed by equity rather than debt. However, there is a slight increase in liabilities that should be monitored.75
Positive
Cash Flow
The company has improved its free cash flow position, transitioning from negative to positive, indicating better cash generation capabilities. The operating cash flow to net income ratio is favorable, showing good conversion of income into cash. However, the cash flow from investing activities remains negative, reflecting ongoing investment that could strain cash reserves if not managed.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 29.11M | 28.75M | 14.59M | 23.00M | 17.13M | 25.86M | Gross Profit |
| 19.78M | 19.76M | 8.04M | 16.37M | 10.72M | 7.54M | EBIT |
| 12.21M | 12.24M | 2.07M | 10.10M | 5.27M | 4.36M | EBITDA |
| 20.59M | 18.17M | 8.58M | 14.92M | 28.36M | 10.64M | Net Income Common Stockholders |
| 13.48M | 11.61M | 4.70M | 9.62M | 20.11M | 6.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.03M | 22.11M | 26.01M | 34.89M | 20.12M | 21.80M | Total Assets |
| 149.69M | 147.35M | 133.22M | 129.23M | 117.18M | 89.76M | Total Debt |
| 236.00K | 7.04M | 7.28M | 4.10M | 121.00K | 120.28K | Net Debt |
| -18.80M | -15.07M | -18.74M | -30.80M | -20.00M | -21.68M | Total Liabilities |
| 16.10M | 17.65M | 14.98M | 16.23M | 14.44M | 7.72M | Stockholders Equity |
| 133.59M | 129.70M | 118.23M | 113.00M | 102.74M | 82.04M |
| Cash Flow | Free Cash Flow | ||||
| 6.98M | -461.00K | -10.15M | 11.63M | 560.00K | 12.09M | Operating Cash Flow |
| 9.11M | 2.21M | -2.34M | 17.45M | 3.46M | 20.72M | Investing Cash Flow |
| -8.89M | -4.73M | -9.24M | -6.67M | -2.90M | -3.45M | Financing Cash Flow |
| -519.00K | -612.00K | 2.85M | 3.99M | 87.00K | 44.78K |
Pure Cycle Technical Analysis
Neutral
10.73
Price Trends
11.28
Negative
12.06
Negative
11.14
Negative
Market Momentum
-0.23
Negative
43.03
Neutral
53.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCYO, the sentiment is Neutral. The current price of 10.73 is below the 20-day moving average (MA) of 10.82, below the 50-day MA of 11.28, and below the 200-day MA of 11.14, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 53.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PCYO.
Pure Cycle Risk Analysis
Pure Cycle disclosed 48 risk factors in its most recent earnings report. Pure Cycle reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pure Cycle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $28.51B | 27.13 | 10.44% | 2.14% | 10.63% | 10.38% | |
71 Outperform | $10.83B | 18.11 | 9.84% | 3.32% | 1.57% | 16.50% | |
69 Neutral | $2.96B | 24.53 | 14.01% | 2.40% | -0.04% | -5.82% | |
67 Neutral | $258.35M | 19.18 | 10.63% | ― | 56.25% | 104.08% | |
65 Neutral | $12.09B | 16.10 | 6.13% | 4.37% | 5.50% | -7.50% | |
63 Neutral | $388.14M | 24.22 | 9.01% | 1.68% | -25.66% | -5.11% | |
61 Neutral | $498.74M | 24.47 | 8.99% | 2.48% | 5.53% | -14.72% |
* Utilities Sector Average
Performance Comparison
PCYO
Pure Cycle
10.73
1.19
12.47%
AWR
American States Water
77.69
7.66
10.94%
AWK
American Water
146.24
28.67
24.39%
WTRG
Essential Utilities
39.29
3.74
10.52%
CWCO
Consolidated Water Co
24.45
-1.87
-7.10%
YORW
The York Water Company
34.66
-0.26
-0.74%
Pure Cycle Earnings Call Summary
Earnings Call Date: Jan 8, 2025 | % Change Since: -10.43% | Next Earnings Date: Apr 15, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenues, increased profits, and significant growth in key segments such as oil and gas royalties and single-family rentals. However, there were concerns about future weaknesses in the Water Utility segment and a projected decline in oil and gas royalties.Highlights
Record Revenues and Growth
Pure Cycle Corporation reported record revenues of $5.7 million for Q1 2025, marking a 7% increase from the previous quarter. Gross profits rose by 10%, and earnings per share increased by 78%.
Strong Performance in Oil and Gas Royalties
The company earned $2.6 million in oil and gas royalties, contributing significantly to the quarter's gross margin of 64%.
Significant Uptick in Tap Fees
Tap fees increased by 150% due to ongoing developments at Sky Ranch, with a 12% rise in customer revenues.
Single-Family Rental Segment Growth
Rental incomes grew by 14%, with a high renewal rate of over 90% for lessees, indicating strong performance in the single-family rental segment.
Lowlights
Weaker Water Utility Segment
The Water Utility segment showed weakness, partly due to a forecasted decline in oil and gas revenues as operators expand their coverage.
Projected Decline in Oil and Gas Royalties
While the company anticipates continued strong performance through the fiscal year, a decline in royalties from new wells is expected over time.
Company Guidance
In the earnings call for Pure Cycle Corporation's first quarter of 2025, the company reported record revenues of approximately $5.7 million, a 7% increase from the previous year. Their gross profit was $3.67 million, yielding a 64% gross margin. The quarter also saw significant royalty income, particularly $2.6 million from oil and gas royalties, contributing to a net income of nearly $4 million or $0.16 per share. The company is on track to meet its 2025 guidance of $31 million in total revenue and $0.52 earnings per share. Additionally, the water utility segment experienced a 150% increase in tap fees, with customer revenues rising by 12%. The single-family rental segment showed a 14% increase in rental income, reflecting both higher rents and new units. Looking forward, Pure Cycle anticipates continued growth across its segments, aligning with its strategic objectives and maintaining competitive metrics in the industry.Pure Cycle Corporate Events
Business Operations and StrategyFinancial Disclosures
Pure Cycle Reports Strong Quarterly Financial Growth
Positive
Jan 10, 2025
Pure Cycle Corporation reported significant financial growth for the quarter ended November 30, 2024, with a 91% increase in net income to $3.9 million and a 78% rise in earnings per share compared to the previous year. The company continues to progress in the Sky Ranch development, with multiple phases underway, contributing to increased revenues from lot sales and royalty income from oil and gas operations, despite a decrease in water deliveries to oil and gas customers. This ongoing development has positioned Pure Cycle as a leading master-planned developer in the Denver metropolitan area, with expectations for continued growth in utility and land development segments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.