Last Updated: 16 Sep 2024
Executive Summary
Pure Cycle Corporation (PCYO) is a water and wastewater systems provider operating in the Denver metropolitan area and Colorado Front Range. As of the latest stock price of $10.24, the company has a market capitalization of $246.41 million. PCYO's financial performance has been mixed, with revenue growth but a decline in earnings. The company has a moderate valuation and a beta of 0.925, indicating its volatility is slightly lower than the overall market.
Company Overview
Pure Cycle Corporation designs, builds, operates, and maintains water and wastewater systems. The company's services include water treatment, wastewater treatment, and water distribution. PCYO has a strong presence in the Denver metropolitan area and is expanding its operations into other parts of Colorado.
Fundamental Analysis
Revenue: PCYO's revenue has grown steadily in recent years, reaching $19.56 million in the latest twelve months (TTM).
Earnings: Diluted EPS has fluctuated, with a decline of 14.4% reported in the latest quarter.
Profitability: Profit margins are moderate, with a gross margin of 31% and an operating margin of 40.4% TTM.
Valuation: PCYO has a trailing PE ratio of 40.94, which is higher than the industry average. The price-to-sales ratio is 12.6, indicating a premium valuation.
Technical Analysis
Moving Averages: The 50-day moving average is $10.20, and the 200-day moving average is $9.87, indicating a slight upward trend.
Support and Resistance: The stock has recently found support around $10.00 and resistance at $10.50.
Short Term Outlook
In the short term, PCYO's stock price is likely to fluctuate within the current range of $10.00 to $10.50. The company's financial performance and any news related to its operations could impact the stock price.
Long Term Outlook
The long-term outlook for PCYO is positive. The company operates in a growing industry with a strong demand for water and wastewater services. PCYO's focus on sustainability and its expansion plans position it well for future growth.
Analyst Recommendations
No analyst recommendations are available for PCYO.
