Pure Cycle Valuation
| PCYO Stock | USD 10.81 0.18 1.64% |
At this time, the company appears to be fairly valued. Pure Cycle holds a recent Real Value of $11.08 per share. The prevailing price of the company is $10.81. Our model determines the value of Pure Cycle from analyzing the company fundamentals such as Shares Outstanding of 24.09 M, return on equity of 0.0962, and Operating Margin of 0.53 % as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Pure Cycle's price fluctuation is not too volatile at this time. Calculation of the real value of Pure Cycle is based on 3 months time horizon. Increasing Pure Cycle's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Pure Cycle is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pure Stock. However, Pure Cycle's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 10.81 | Real 11.08 | Hype 10.81 | Naive 10.46 |
The intrinsic value of Pure Cycle's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Pure Cycle's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Pure Cycle helps investors to forecast how Pure stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pure Cycle more accurately as focusing exclusively on Pure Cycle's fundamentals will not take into account other important factors: Pure Cycle Total Value Analysis
Pure Cycle is at this time anticipated to have valuation of 249.63 M with market capitalization of 260.42 M, debt of 6.79 M, and cash on hands of 34.89 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Pure Cycle fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
249.63 M | 260.42 M | 6.79 M | 34.89 M |
Pure Cycle Investor Information
About 72.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.85. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pure Cycle had not issued any dividends in recent years. The entity had 1:10 split on the 26th of April 2004. Based on the measurements of operating efficiency obtained from Pure Cycle's historical financial statements, Pure Cycle is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February.Pure Cycle Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pure Cycle has an asset utilization ratio of 16.08 percent. This suggests that the Company is making $0.16 for each dollar of assets. An increasing asset utilization means that Pure Cycle is more efficient with each dollar of assets it utilizes for everyday operations.Pure Cycle Ownership Allocation
Pure Cycle owns a total of 24.09 Million outstanding shares. The majority of Pure Cycle outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Pure Cycle to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Pure Cycle. Please pay attention to any change in the institutional holdings of Pure Cycle as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Pure Cycle Profitability Analysis
The company reported the previous year's revenue of 26.09 M. Net Income was 13.11 M with profit before overhead, payroll, taxes, and interest of 16.03 M.About Pure Cycle Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Pure Cycle. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Pure Cycle based exclusively on its fundamental and basic technical indicators. By analyzing Pure Cycle's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Pure Cycle's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Pure Cycle. We calculate exposure to Pure Cycle's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Pure Cycle's related companies.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 Cycle Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 24.2 M | |
| Quarterly Earnings Growth Y O Y | -0.075 |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pure Cycle. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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.
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.