Pure Cycle Corporation Common Stock (PCYO)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Pure Cycle is a small water and wastewater utility that also develops land and rents homes. In fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $8.2M, net income $2.9M, and diluted EPS $0.12; versus fiscal Q3 2025, the quarter ended 2025-05-31, revenue was $5.1M, net income $2.3M, and diluted EPS $0.09. That is real growth. But annual figures are uneven: FY2025, ended 2025-08-31, revenue was $26.1M, down from $28.7M in FY2024, while net income rose to $13.1M from $11.6M and diluted EPS rose to $0.54 from $0.48. So margins and profit improved even as revenue slipped. The balance sheet looks conservative: D/E 0.09, Altman Z 6.60, and Piotroski 7/9, though trailing twelve-month free cash flow is -$1.0M and ROCE is only 4.85%. ROE of 10.22% is moderate. The utility, land, and rental mix may create local barriers, but with 44 employees and regulated water operations, scale is limited. FairStock calls it a STALWART: profit 14.2% a year over five years, revenue 0.2%. At $11.25 on 2026-10-13, FairStock’s P/E is 18.44, P/B 1.79, EV/EBITDA 12.30, and PEG 0.60. Its Graham Number is $9.29, giving a -21.10% margin of safety, so the price is not a Graham bargain. This is a quality-leaning small utility with improving profit, but low returns on capital, negative free cash flow, and a full-ish price warrant caution.

In plain English: Pure Cycle provides water and wastewater services in the United States and also develops land and rents homes. The business is profitable, and in its latest reported quarter it earned more than a year earlier, but its yearly revenue has been uneven and it currently spends more cash than it brings in. At the recent price of $11.25, the shares look fair to a bit expensive compared with reported profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer