Pure Cycle Corporation (PCYO) AI Stock Analysis

Pure Cycle Corporation, based in Watkins, Colorado, specializes in the design, construction, operation, and maintenance of water and wastewater systems across the Denver metropolitan area and Colorado Front Range. Founded in 1976, the company operates two primary segments: Wholesale Water and Wastewater Services, and Land Development. In its utility segment, Pure Cycle produces, stores, treats, and distributes wholesale water, while collecting and treating wastewater for domestic, commercial, and industrial customers. Its Land Development segment is engaged in developing a 930-acre master-planned community, which includes constructing and leasing single-family homes. Pure Cycle also maintains an oil and gas leasing business.

In FY2025, Pure Cycle generated revenue of $26.1M, down 9.3% from $28.7M in FY2024. Top-line results have fluctuated historically, with revenue rising 97.1% in FY2024 following a 36.6% drop to $14.6M in FY2023. Over the five fiscal years from FY2020 to FY2025, revenue grew at a CAGR of 0.2%. Profitability remained positive, with FY2025 net income reaching $13.1M, a net margin of 50.3%, and EPS of $0.54. Gross margin was 61.4% and operating margin was 29.4% in FY2025. Over the trailing twelve months, revenue totaled $33.7M. In the latest quarter ended May 31, 2026, quarterly revenue grew 60.0% and quarterly earnings expanded 33.3% year-over-year.

As of May 31, 2026, Pure Cycle held $8.4M in cash and short-term investments against total debt of $14.1M, resulting in net debt of $5.7M. Total assets were $176.0M compared to shareholders' equity of $151.6M. The company reported a current ratio of 1.53 and a debt-to-equity ratio of 0.09. In FY2025, operating cash flow reached $13.2M and capital expenditures were $9.5M, generating free cash flow of $3.7M. Capital allocation in FY2025 included $397,000 for share buybacks.

At a last close of $11.02 on October 16, 2026, Pure Cycle had a market cap of $265.6M and an enterprise value of $270.9M. The stock trades at a trailing P/E of 18.1x, below the 20.6x median of its US-listed Utilities peers. However, its forward P/E of 56.5x is above the peer median of 17.2x. Pure Cycle carries a price-to-sales multiple of 7.9x versus the peer median of 2.4x and an EV to EBITDA ratio of 13.0x versus 12.1x. Over the past year, the stock returned 0.1%, trailing the S&P 500 return of 16.8%. Over five years, the stock returned -27.8% compared to 83.0% for the index.

Wall Street coverage features a mean price target of $6.55, which is 40.6% below the last close of $11.02. For the current fiscal year ending August 31, 2026, the consensus revenue estimate is $0. Pure Cycle is scheduled to report its next earnings on November 11, 2026.

This page is an AI-written research summary of Pure Cycle Corporation (PCYO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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