Pure Cycle Corporation

PCYO

Regulated Water · Utilities

Price

$11.32

-0.37 (-3.17%)

Market Cap

$272.8M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Good

Stability

Exceptional

Valuation

Mixed

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Winston Score History

The full picture

Pure Cycle Corporation is a small water and wastewater utility based in Colorado. It provides drinking water and wastewater services to homes and businesses being built in the fast-growing areas east of Denver, particularly in the Sky Ranch development. The company also sells water to oil and gas companies for use in drilling operations.

Pure Cycle makes money by charging customers for water and wastewater service, and by selling raw water to energy companies. It operates entirely in Colorado and holds long-term water rights, which are difficult and expensive for competitors to replicate — that is its main competitive advantage. Growth depends heavily on how fast new homes and communities are built in its service territory, so a slowdown in residential construction in the Denver metro area is the biggest risk the business faces.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+60.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+28.1% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

8.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$68M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Pure Cycle Corporation grew revenue 60% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 24.1M (2021) → 24.2M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

52.1%

Healthy — 52.1% gross margin

Profit after running costs

Operating Margin

25.7%

Excellent — 25.7% operating margin

Return on the money invested

ROCE

7.7%

Weak — 7.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+22.9%

Fast-growing sales (+22.9% YoY)

Profit growth

EPS YoY

+9.5%

Earnings growing (+9.5% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

52%

Weak — only 52% of profit becomes cash

Spare cash per sale

FCF Margin

14.3%

Converts sales into free cash efficiently (14.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.09

Conservative — low debt load (0.09)

Covers its interest

Interest Cover

25.41x

Comfortably covers interest (25.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

18.6x

Fair value — P/E 18.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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