Pure Cycle Corporation
Pure Cycle Corporation operates in the water and wastewater systems industry, serving the Denver metropolitan area and Colorado Front Range. The company has two segments: Wholesale Water and Wastewater Services, and Land Development. It provides wholesale water production, storage, treatment, and distribution, as well as wastewater collection and treatment.
Overview
Strengths
- Price to book ratio (1.98) is lower than the sector mean (2.73).
- The company has low debt. Net Debt to EBITDA Ratio is -0.84 and it is lower than the sector mean.
- EV/EBIT (15.06) is lower than the sector mean.
- Strong EBITDA Margin of 63.21%.
Weaknesses
- With a depreciation Potential of -94.26%, based on our fundamental analysis, it suggests the stock may be overvalued.
- Analysts expect revenues to decline in the coming year.
- The company have lower returns than the sector in which it operates. ROIC (1.62%) is significantly lower than the sector mean (5.02%).
Key Financial Data
| Indicator | Value |
|---|
| PER | 22.2 |
| EV/EBITDA | 13.3 |
| Price/Free Cash Flow' | 100.0 |
| ROIC | 1.6% |
| Net Debt/EBITDA | -0.8 |