Pure Cycle Stock Analysis, Valuation (NASDAQ:PCYO)

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$10.8 $0.1 (0.92%) PCYO stock closing price Aug 15, 2018 (Closing)

Watch the robo advisor video of Pure Cycle stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for PCYO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Pure Cycle Corporation Stock Rating 2.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for PCYO stock analysis. Pure Cycle valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Pure Cycle stock rating which is indicative of the company's financial performance.

Should you buy PCYO stock?

  • The Year Over Year (YoY) revenue growth for Pure Cycle was 830.8% in 2018-05.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 21.7.

Should you sell PCYO stock?

  • Pure Cycle registered a negative operating margin of -23.86 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Pure Cycle had an average Net loss of -12.3%.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company is trading at a price to sales multiple of 69.4, which is higher in comparison to the Utilities sector average of 2, making PCYO stock expensive.
  • The company has a negative Return on Invested Capital of -2, which is a red flag.
  • A negative ROE of -0.7 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -36.4.

Comments on this video and Pure Cycle stock

Amigobulls Pure Cycle stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of PCYO stock. Company's fundamentals remain one of the key driver of PCYO stock and helps investors in making good buy and sell decision.

Pure Cycle revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of PCYO technical analysis to check whether the fundamental story is reflected in the market sentiment.