Pure Cycle Current Valuation vs. EBITDA

PCYO Stock  USD 14.16  0.17  1.22%   
Based on the measurements of profitability obtained from Pure Cycle's financial statements, Pure Cycle is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Pure Cycle's ability to earn profits and add value for shareholders. As of the 4th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.08, while Price To Sales Ratio is likely to drop 8.48. At this time, Pure Cycle's Interest Income is very stable compared to the past year. As of the 4th of December 2024, Net Interest Income is likely to grow to about 2.5 M, while Income Tax Expense is likely to drop about 2.2 M.
For Pure Cycle profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pure Cycle to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pure Cycle utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pure Cycle's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pure Cycle over time as well as its relative position and ranking within its peers.
  

Pure Cycle's Revenue Breakdown by Earning Segment

Check out Your Equity Center.
To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pure Cycle. If investors know Pure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pure Cycle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
5.767
Earnings Share
0.48
Revenue Per Share
1.194
Quarterly Revenue Growth
2.729
Return On Assets
0.0545
The market value of Pure Cycle is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Cycle's value that differs from its market value or its book value, called intrinsic value, which is Pure Cycle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pure Cycle's market value can be influenced by many factors that don't directly affect Pure Cycle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pure Cycle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pure Cycle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Cycle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Pure Cycle EBITDA vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Pure Cycle's current stock value. Our valuation model uses many indicators to compare Pure Cycle value to that of its competitors to determine the firm's financial worth.
Pure Cycle is rated below average in current valuation category among its peers. It is regarded fifth in ebitda category among its peers totaling about  0.05  of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Pure Cycle is roughly  18.55 . At this time, Pure Cycle's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Pure Cycle's earnings, one of the primary drivers of an investment's value.

Pure Current Valuation vs. Competition

Pure Cycle is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities industry is at this time estimated at about 2.1 Billion. Pure Cycle retains roughly 337.12 Million in current valuation claiming about 16% of Utilities industry.

Pure EBITDA vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Pure Cycle

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
337.12 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Pure Cycle

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
18.17 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Pure EBITDA Comparison

Pure Cycle is currently under evaluation in ebitda category among its peers.

Pure Cycle Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Pure Cycle, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pure Cycle will eventually generate negative long term returns. The profitability progress is the general direction of Pure Cycle's change in net profit over the period of time. It can combine multiple indicators of Pure Cycle, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income12.2 M12.9 M
Net Income11.6 M12.2 M
Income Tax ExpenseM2.2 M
Income Before Tax15.6 M16.4 M
Total Other Income Expense Net3.4 M3.6 M
Net Income From Continuing Ops11.6 M12.2 M
Non Operating Income Net Other679.6 K429.5 K
Net Income Applicable To Common Shares11.1 M11.6 M
Interest Income2.8 MM
Net Interest Income2.4 M2.5 M
Change To Netincome256.4 K243.6 K
Net Income Per Share 0.48  0.51 
Income Quality 0.19  0.18 
Net Income Per E B T 0.74  0.64 

Pure Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Pure Cycle. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Pure Cycle position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Pure Cycle's important profitability drivers and their relationship over time.

Use Pure Cycle in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pure Cycle position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pure Cycle will appreciate offsetting losses from the drop in the long position's value.

Pure Cycle Pair Trading

Pure Cycle Pair Trading Analysis

The ability to find closely correlated positions to Pure Cycle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pure Cycle when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pure Cycle - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pure Cycle to buy it.
The correlation of Pure Cycle is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pure Cycle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pure Cycle moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pure Cycle can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Pure Cycle position

In addition to having Pure Cycle in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Business Supplies Thematic Idea Now

Business Supplies
Business Supplies Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Supplies Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Pure Cycle offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pure Cycle's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pure Cycle Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pure Cycle Stock:
Check out Your Equity Center.
To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Pure Cycle's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pure Cycle at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Pure Cycle's income statement, its balance sheet, and the statement of cash flows.
Potential Pure Cycle investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Pure Cycle investors may work on each financial statement separately, they are all related. The changes in Pure Cycle's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Pure Cycle's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.