Stock fact sheet · data as of
Pure Cycle Corporation (PCYO): fair value, margin of safety and Wheel Score
Utilities · Regulated Water · United States · Blend
Is PCYO undervalued?
At 11.19 (close of 16 Oct 2026), PCYO trades 51% over the GLS average fair value of 7.42, with 1 of 8 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between GLS Growth (1.43) and Graham Growth (17.84). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PCYO under Blend.
Nine valuation models for PCYO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 6.83 | -39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 9.30 | -17% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 17.84 | +59% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.53 | -42% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.43 | -87% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 6.90 | -38% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.72 | -67% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.79 | -39% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.5026 | -96% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Pure Cycle Corporation scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 4.7/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 8.8%, ROE 9.2%, ROA 8.1% - with debt at 0.05 times equity and a free-cash-flow yield of 1.8%.
Pure Cycle Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Water And Wastewater 35%, Construction 25%, Lot Sales 22% (quarter Q3 FY2026).
Institutional ownership scores 7/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 16 Sep 2026.
| Piotroski F-score | 4 / 9 | ROIC | 8.8% |
|---|---|---|---|
| GLS Moat | 4.7 / 10 | ROE | 9.2% |
| Debt / equity | 0.05 | ROA | 8.1% |
| Free-cash-flow yield | 1.8% | Payout ratio | 0% |
| Institutions | 7 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 42: Weak
With a Wheel Score of 42 Pure Cycle Corporation sits in the Weak band. The parts - Value 0/25, Health 9/20, Moat 7/15, Premium 20/20, Stability 6/20 - show where: Value (0/25) scores lowest.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (20 of 20 points). Chain open interest is thin - 1,282 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 95k shares a day on a market cap of $270M, with a beta of 1.21 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -51% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 7 / 15 | moat 4.7/10 | |
| Premium | 20 / 20 | implied volatility 35% | |
| Stability | 6 / 20 | 95k shares/day, $270M cap, beta 1.21 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Nov 2026 (after the close), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Water
The 12 companies below are the closest to Pure Cycle Corporation by market cap within the Regulated Water industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CDZIP Cadiz Inc. | 19.60 | - | - | 24No options | $298M |
| GWRS Global Water Resources, Inc. | 8.09 | 3.26 | -148% | 42Weak | $233M |
| CDZI Cadiz Inc. | 3.81 | - | - | 35Weak | $323M |
| ARTNA Artesian Resources Corporation | 33.16 | 26.17 | -27% | 26No options | $342M |
| ARTNB Artesian Resources Corporation | 34.01 | 26.54 | -28% | 25No options | $349M |
| CWCO Consolidated Water Co. Ltd. | 28.76 | 37.63 | +24% | 69Good | $461M |
| YORW The York Water Company | 31.07 | 16.60 | -87% | 49Weak | $504M |
| MSEXP Middlesex Water Company PFD 7% | 492.00 | 151.21 | -225% | 28No options | $822M |
| MSEX Middlesex Water Company | 53.91 | 28.46 | -89% | 47Weak | $1.0B |
| HTO H2O America | 57.30 | 39.94 | -43% | 54Fair | $2.4B |
| CWT California Water Service Group | 46.05 | 24.67 | -87% | 53Fair | $2.8B |
| AWR American States Water Company | 82.74 | 45.00 | -84% | 51Fair | $3.3B |
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Start free See the Sunday ScanQuestions about PCYO
Is PCYO undervalued right now?
No: at 11.19 the stock trades 51% above the GLS average fair value of 7.42 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of PCYO and what does it mean?
PCYO scores 42 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PCYO?
7.42 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Pure Cycle Corporation report earnings next?
The next earnings report is due on 11 Nov 2026 (after the close), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PCYO have listed options, and how liquid are they?
Yes. The nightly snapshot found 86 listed contracts with 1,282 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.