PURE CYCLE CORP (PCYO) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Energy / Oil & Gas · as of Jun 28, 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.
B · Sound & dependable
Forensic grade
Safe
Financial health
8.1
Altman Z-score
Clean
Earnings quality
4
Forensic signals
19.3
P / E (ttm)
9.8%
ROE
$271M
Market cap
PURE CYCLE CORP earns a B (Sound & dependable) forensic quality grade, and its Altman Z-score is 8.1, 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×Cash conversion.Over FY2023–FY2025, operating cash flow was 0.45× cumulative net income. Reported profit is not turning into cash — a classic earnings-quality warning.
4%Return on invested capital.Return on invested capital is 4% and slipping from 9% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+10.8%Accruals ratio.Net operating assets grew +10.8% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran in line with operating cash by -0% of net operating assets.
+0.0%/yrShare-count dilution.Diluted share count changed +0% over the last 3 years to FY2025 (+0.0%/yr). Roughly flat — buybacks are about offsetting stock comp, not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Net Margin50.3%
Debt / Equity0.05x
Free Cash Flow$12.3M
Latest Revenue$26.1M
Return on Equity9.2%
Revenue Growth YoY-9.3%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on PURE CYCLE CORP:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about PCYO's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown