Pure Cycle Net Income vs. Operating Margin
| PCYO Stock | USD 14.03 0.23 1.67% |
For Pure Cycle profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pure Cycle to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pure Cycle utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pure Cycle's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pure Cycle over time as well as its relative position and ranking within its peers.
Pure |
Pure Cycle's Revenue Breakdown by Earning Segment
Check out Your Equity Center.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pure Cycle. If investors know Pure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pure Cycle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 5.767 | Earnings Share 0.48 | Revenue Per Share 1.194 | Quarterly Revenue Growth 2.729 | Return On Assets 0.0545 |
The market value of Pure Cycle is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Cycle's value that differs from its market value or its book value, called intrinsic value, which is Pure Cycle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pure Cycle's market value can be influenced by many factors that don't directly affect Pure Cycle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pure Cycle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pure Cycle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Cycle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Pure Cycle Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pure Cycle's current stock value. Our valuation model uses many indicators to compare Pure Cycle value to that of its competitors to determine the firm's financial worth. Pure Cycle is regarded fourth in net income category among its peers. It is considered to be number one stock in operating margin category among its peers . The ratio of Net Income to Operating Margin for Pure Cycle is about 18,733,667 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Pure Cycle's earnings, one of the primary drivers of an investment's value.Pure Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Pure Cycle |
| = | 11.61 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Pure Cycle |
| = | 0.62 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Pure Operating Margin Comparison
Pure Cycle is currently under evaluation in operating margin category among its peers.
Pure Cycle Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pure Cycle, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pure Cycle will eventually generate negative long term returns. The profitability progress is the general direction of Pure Cycle's change in net profit over the period of time. It can combine multiple indicators of Pure Cycle, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. Pure Cycle Corporation was founded in 1976 and is based in Watkins, Colorado. Pure Cycle operates under UtilitiesRegulated Water classification in the United States and is traded on NASDAQ Exchange. It employs 35 people.
Pure Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pure Cycle. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Pure Cycle position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Pure Cycle's important profitability drivers and their relationship over time.
Use Pure Cycle in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pure Cycle position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pure Cycle will appreciate offsetting losses from the drop in the long position's value.Pure Cycle Pair Trading
Pure Cycle Pair Trading Analysis
The ability to find closely correlated positions to Pure Cycle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pure Cycle when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pure Cycle - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pure Cycle to buy it.
The correlation of Pure Cycle is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pure Cycle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pure Cycle moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pure Cycle can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Pure Cycle position
In addition to having Pure Cycle in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Energy Funds Thematic Idea Now
Energy Funds
Funds or Etfs investing in energy sector, natural resources, and ecology. The Energy Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Energy Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Equity Center. To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
To fully project Pure Cycle's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pure Cycle at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Pure Cycle's income statement, its balance sheet, and the statement of cash flows.