Stock fact sheet · data as of
Pure Cycle Corporation (PCYO): fair value, margin of safety and Wheel Score
Ticker symbol PCYO · Utilities · Regulated Water · United States · Value
Is PCYO undervalued?
At 10.77 (close of 5 Nov 2026), PCYO trades 44% over the GLS average fair value of 7.46, 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.
Ranked against every other company we cover, PCYO is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 39, growth score 8, out of 100).
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 | 7.20 | -33% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 9.30 | -14% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 17.84 | +66% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.53 | -39% | 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 | -36% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.72 | -65% | 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 | -37% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.5026 | -95% | 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 "Piotroski 6 or more" Wheel Trade Filter. 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. On durability PCYO scores 5.8/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
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 1.9%.
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 | 5.8 / 10 | ROE | 9.2% |
| Debt / equity | 0.05 | ROA | 8.1% |
| Free-cash-flow yield | 1.9% | Payout ratio | 0% |
| Institutions | 7 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 32: Weak
With a Wheel Score of 32 Pure Cycle Corporation sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (509 open interest, 39 a day); and filter 3, below fair value - trades 44% above our fair value; and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 8, big enough - market cap $260M (under $1.0B); Value (weak) is its weakest part.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 509 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 72k shares a day on a market cap of $260M, with a beta of 1.16; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (509 open interest, 39 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 44% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $260M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 44% above fair value | |
| Premium | Strong | implied volatility 48% | |
| Moat | Fair | moat 5.8/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Weak | 39 contracts a day, 509 open interest | |
| Stability | Fair | beta 1.16, $260M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Pure Cycle Corporation reports earnings on 18 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 |
|---|---|---|---|---|---|
| GWRS Global Water Resources, Inc. | 8.15 | 2.72 | -200% | 33Weak | $235M |
| CDZI Cadiz Inc. | 3.65 | 0.8873 | -311% | 6Weak | $309M |
| CDZIP Cadiz Inc. | 19.41 | 4.42 | -339% | 10No options | $330M |
| ARTNB Artesian Resources Corporation | 34.92 | 26.62 | -31% | 19No options | $350M |
| ARTNA Artesian Resources Corporation | 33.85 | 26.16 | -29% | 19No options | $350M |
| CWCO Consolidated Water Co. Ltd. | 27.39 | 37.70 | +27% | 45Weak | $439M |
| YORW The York Water Company | 32.26 | 16.59 | -94% | 28Weak | $524M |
| MSEXP Middlesex Water Company PFD 7% | 492.00 | 134.84 | -265% | 15No options | $822M |
| MSEX Middlesex Water Company | 59.20 | 28.34 | -109% | 36Weak | $1.1B |
| HTO H2O America | 62.65 | 37.06 | -69% | 35Weak | $3.0B |
| CWT California Water Service Group | 49.96 | 25.23 | -98% | 25Weak | $3.1B |
| AWR American States Water Company | 88.61 | 46.34 | -91% | 31Weak | $3.5B |
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Start free See the Sunday ScanQuestions about PCYO
Is PCYO undervalued right now?
No: at 10.77 the stock trades 44% above the GLS average fair value of 7.46 (data as of 5 Nov 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 32 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3, 4, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PCYO?
7.46 per share as of 5 Nov 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 18 Nov 2026 (after the close), 13 days from the data date of 5 Nov 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 12 listed contracts with 509 open interest across all expiries and implied volatility of 48% 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.