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Upturn AI SWOT - About
PCYO 
Pure Cycle Corporation (PCYO)
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Upturn Advisory Summary
04/01/2025: PCYO (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 14.01% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 257.14M USD | Price to earnings Ratio 19.42 | 1Y Target Price 6.55 |
Price to earnings Ratio 19.42 | 1Y Target Price 6.55 | ||
Volume (30-day avg) 35405 | Beta 1.05 | 52 Weeks Range 8.94 - 14.63 | Updated Date 04/1/2025 |
52 Weeks Range 8.94 - 14.63 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.55 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date 2025-04-08 | When After Market | Estimate - | Actual - |
Profitability
Profit Margin 46.32% | Operating Margin (TTM) 29.89% |
Management Effectiveness
Return on Assets (TTM) 5.32% | Return on Equity (TTM) 10.63% |
Valuation
Trailing PE 19.42 | Forward PE - | Enterprise Value 245147392 | Price to Sales(TTM) 8.88 |
Enterprise Value 245147392 | Price to Sales(TTM) 8.88 | ||
Enterprise Value to Revenue 8.46 | Enterprise Value to EBITDA 11.95 | Shares Outstanding 24076900 | Shares Floating 18393555 |
Shares Outstanding 24076900 | Shares Floating 18393555 | ||
Percent Insiders 3.28 | Percent Institutions 64.04 |
Analyst Ratings
Rating - | Target Price 6.55 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Pure Cycle Corporation
Company Overview
History and Background
Pure Cycle Corporation (PCYO) was founded in 1986. Initially focused on oil and gas exploration, it shifted its strategy to water resource management and land development. Its primary focus is now on the Sky Ranch community in Colorado.
Core Business Areas
- Water and Wastewater Services: Provides water and wastewater services to the Sky Ranch community, including infrastructure development and operations.
- Land Development: Develops residential lots and sells them to homebuilders within the Sky Ranch master-planned community.
- Other: Exploration of Oil and Gas, however this is not currently a revenue generating business line for Pure Cycle
Leadership and Structure
Mark Harding is the CEO. The company has a board of directors overseeing strategic decisions. The structure includes departments for land development, water resources, finance, and operations.
Top Products and Market Share
Key Offerings
- Residential Lots: Sells developed residential lots within the Sky Ranch community to homebuilders. Revenue from residential lot sales constitutes the bulk of their revenue. Competitors include other land developers in the Denver metro area and surrounding areas.
- Water and Wastewater Services: Provides essential water and wastewater services to the Sky Ranch community. Revenue from this segment is recurring and directly tied to population growth within the community. Municipal water and services are competitors.
Market Dynamics
Industry Overview
The industry includes residential land development and water resource management. The Denver metro area experiences continuous demand for housing, driving land values. Water scarcity and regulatory requirements impact water resource management.
Positioning
Pure Cycle is positioned as a vertically integrated developer, controlling water resources and land within its Sky Ranch community. This vertical integration provides a competitive advantage. It serves a specific geographical location, making them a location-specific market leader.
Total Addressable Market (TAM)
The TAM for residential land development in the Denver metro area is estimated to be in the billions of dollars. Pure Cycle's TAM is more localized to its Sky Ranch development and the surrounding region.
Upturn SWOT Analysis
Strengths
- Control of valuable water resources
- Vertically integrated business model
- Strategic location within a growing metropolitan area
- Recurring revenue from water and wastewater services
- Sustainable Practices
- Strong ties to the Community
Weaknesses
- Concentration of operations in a single development (Sky Ranch)
- Reliance on the housing market cycle
- Potential regulatory risks related to water resources
- Limited diversification
- Sensitivity to Colorado's volatile climate
Opportunities
- Expansion of Sky Ranch community
- Development of additional phases within Sky Ranch
- Strategic partnerships with homebuilders
- Potential acquisition of other water resources
- Further infrastructure development within Sky Ranch
Threats
- Economic downturn affecting the housing market
- Increased competition from other land developers
- Changes in water regulations
- Water scarcity and drought conditions
- Unexpected increase to costs associated with drilling new water wells
Competitors and Market Share
Key Competitors
- DHI
- LEN
- MTH
Competitive Landscape
Pure Cycle's competitive advantage lies in its control of water resources and vertically integrated operations. However, it competes with larger, more diversified homebuilders for market share.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Pure Cycle's growth is primarily driven by the pace of development and lot sales within the Sky Ranch community.
Future Projections: Future growth depends on the successful execution of its Sky Ranch development plan and its ability to secure and manage water resources effectively.
Recent Initiatives: Ongoing development of infrastructure and expansion of Sky Ranch.
Summary
Pure Cycle is a niche player in the Denver metro area real estate market, controlling key water resources for its Sky Ranch development. Its integrated approach provides some defensibility. Challenges include reliance on a single project, the housing market, and water resource management. The growth trajectory will depend on continued development and water availability.
Similar Companies
- FIVE
- LGIH
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- HOPE
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Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), investor presentations, press releases, industry reports, financial data providers.
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share data is approximate and may vary based on source and methodology. Investment decisions should be based on individual due diligence.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Pure Cycle Corporation
Exchange NASDAQ | Headquaters Watkins, CO, United States | ||
IPO Launch date 1997-01-02 | President, CEO, Principal Executive Officer & Director Mr. Mark W. Harding | ||
Sector Utilities | Industry Utilities - Regulated Water | Full time employees 39 | Website https://www.purecyclewater.com |
Full time employees 39 | Website https://www.purecyclewater.com | ||
Pure Cycle Corporation provides wholesale water and wastewater services in the United States. It operates in two segments, Wholesale Water and Wastewater Services; and Land Development. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of master-planned community; and construction and leasing of single-family homes. It serves domestic, commercial, and industrial customers. The company was incorporated in 1976 and is based in Watkins, Colorado.
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