Intrinsiqq
Pure Cycle Corporation logoPure Cycle CorporationPCYO
$10.56-0.66%
Pure Cycle Corporation logo

Pure Cycle Corporation

PCYO

$10.56

-$0.07 (-0.66%)

⊜ Compare
ProfitabilityStrong marginsGrowthDecliningCash FlowStrong conversionValuationFairly valued
What stands out

29.40% operating margin is above average. ROIC at 4.23%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.

What's changing

Revenue declined 9.3% YoY. Margins deteriorated 13.2pp alongside, both lines moving the wrong way.

What deserves caution

ROIC dropped from 6.44% to 4.23%, capital efficiency is deteriorating. Operating margin contracted 13.2pp YoY, cost discipline may be slipping.

Valuation context

17.0x earnings, 39.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.

Price History

-4.2%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$254M
EPS$0.62
P/E17.03
P/FCF39.22
EV/EBITDA17.36
FCF Yield2.5%
Div. Yield—
Net Debt/FCF1.1x
52-Week Range
$9.85$11.94

Profitability & Returns

Revenue (TTM)

$34M

▼ -9.3% YoY

Net Income (TTM)

$15M

▲ +12.9% YoY

Op. Margin

37.67%

▼ -13.2pp YoY

ROIC

4.94%

▼ -2.2pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$6M

▲ +563.6% YoY

Op. Cash Flow (TTM)

$8M

▲ +469.4% YoY

Net Debt

$7M

Cash & Equiv.

$8M

5Y CAGR: +0.2%

5Y CAGR: -9.4%

Continue Research

SourceComputed from the 10-Q filed 6 Jul 2026, covering the period ending 31 May 2026, as reported to the SEC. Data last refreshed 3 Aug 2026. How this is calculated.

Price from market data, last close as of 21 Oct 2026. Fiscal year ends Aug. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Pure Cycle (PCYO) overvalued?

At a P/E of 17.0 and a price-to-free-cash-flow of 39.2, Pure Cycle (PCYO) trades above a two-stage DCF intrinsic value of about $10.51 per share, so at $10.56 the stock looks overvalued (0.5% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Pure Cycle scores 40/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Pure Cycle's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $10.51 per share for PCYO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $7.88. At today's $10.56, that puts the stock about 0.5% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Pure Cycle a high-quality business?+

Pure Cycle scores 40 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 37.7% operating margin and a 4.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Pure Cycle a good stock to buy right now?+

That depends on valuation and quality together, not either alone. PCYO currently trades above its estimated intrinsic value and scores 40/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Water Supply

Spot a number that looks wrong? Check it in PCYO's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Not financial advice. Analytical data for research only.

Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.