Forensic Analysis · Utilities · as of Aug 12, 2026
Pure Cycle Corp (PCYO)
A forensic read on Pure Cycle Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
13.1
Distress distance
Clean
Earnings quality
4
Forensic signals
17.4
P / E (ttm)
9.2%
ROE
$275M
Market cap
-9.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Pure Cycle Corp earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 13.1, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.45×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, operating cash flow was 0.45× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+10.8%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.8% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. This is the third straight fiscal year of building accruals — a multi-year streak is a materially stronger tell than a single year's move. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 0% of net operating assets, diverging from the balance-sheet accrual read.
4.5%
FY2025
Return on invested capital.Return on invested capital is 4.5% in the latest fiscal year and slipping from 9% — slightly below its ~6% cost of capital — reinvestment is roughly a wash.
+0.0%/yr
FY2022–FY2025
Share count.Diluted share count changed +0% over the last 3 years to FY2025 (+0.0%/yr). Roughly flat — buybacks ($397,000) are about offsetting stock comp ($323,000), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$26.1M
Revenue Growth YoY-9.3%
Revenue CAGR (3yr)+4.3%
Net Margin50.3%
Free Cash Flow$12.3M
Return on Equity9.2%
Debt / Equity0.05x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Pure Cycle Corp's actual 10-K/10-Q/8-K filings?