Pure CyclePCYO +1.72%72 Interest Coverage is 1.85 as of Feb. 2026, which is 100% below its 10-year median of 5,056.09. GuruFocus rates PCYO with a GF Score™ of 72/100 and a GF Value™ of $14.11 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, Pure Cycle ranks better than 86.41% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Pure Cycle's
Operating Income
for the
three
months ended in Feb. 2026 was $0.26 Mil. Pure Cycle's Interest Expense for the
three
months ended in Feb. 2026 was $-0.14 Mil.
Pure Cycle's interest coverage for the quarter that ended in Feb. 2026 was 1.85.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pure Cycle's Interest Coverage or its related term are showing as below:
PCYO'
s Interest Coverage Range Over the Past 10 Years
Min: 10.06 Med: 5056.09 Max: No Debt
Current: 26.86
PCYO's Interest Coverage is ranked better than 86.41% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs PCYO: 26.86
Pure Cycle (NAS:PCYO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Pure Cycle Interest Coverage Related Terms
Pure Cycle Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pure Cycle's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PCYO vs GWRS, ARTNA, CDZI: Interest Coverage Comparison
For the Utilities - Regulated Water subindustry, Pure Cycle's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pure Cycle Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pure Cycle's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Pure Cycle (PCYO) has a Interest Coverage of 1.85 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pure Cycle and its competitors. This is 100% below median its historical median of 5,056.09. Over the past decade, Pure Cycle's Interest Coverage has ranged from 10.06 to 10,000.00. According to the industry distribution chart, Pure Cycle ranks #61 out of 449 companies in the Utilities - Regulated industry, placing it in the top 13.6%.
Is Pure Cycle's Interest Coverage too high?
Pure Cycle's current Interest Coverage of 1.85 is 100% below median its 10-year median of 5,056.09. Over the past 10 years, this metric has ranged from a low of 10.06 to a high of 10,000.00. The Utilities - Regulated industry median Interest Coverage is 3.78. Pure Cycle's value of 1.85 is 51.1% below this industry median. Based on the distribution chart, Pure Cycle ranks #61 out of 449 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Pure Cycle has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pure Cycle's Interest Coverage compare to GWRS and ARTNA?
According to the Utilities - Regulated industry distribution chart, Pure Cycle ranks #61 out of 449 companies for Interest Coverage. This places Pure Cycle in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.78. Pure Cycle's value of 1.85 is 51.1% below this benchmark. Historically, Pure Cycle's own Interest Coverage has ranged from 10.06 to 10,000.00 over the past decade. While the company's 10-year median is 5,056.09 vs. the industry median of 3.78, Pure Cycle has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pure Cycle's current Interest Coverage of 1.85 is 51.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pure Cycle and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pure Cycle's current Interest Coverage is 1.85, which is 100% below median its own 10-year median of 5,056.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pure Cycle stock overvalued right now?
Based on GuruFocus' analysis, Pure Cycle (PCYO) is currently considered Modestly Undervalued. The stock's GF Value™ is $14.11, compared to a current price of $11.19 — trading 20.7% below its estimated fair value. The current Interest Coverage is 1.85, which is 100% below median its 10-year median of 5,056.09 and 51.1% below the Utilities - Regulated industry median of 3.78. Pure Cycle's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Pure Cycle (PCYO), the current Interest Coverage is 1.85 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pure Cycle (PCYO) Overvalued in 2026?
Based on GuruFocus' analysis, Pure Cycle stock appears to be undervalued.
The current stock price of $11.19 is trading 20.7% below its estimated GF Value™ of $14.11.
GuruFocus considers Pure Cycle to be Modestly Undervalued.
Key valuation signals for PCYO:
Interest Coverage: 1.85 (100% below median its 10-year median of 5,056.09)
GF Value™: $14.11 vs. price of $11.19 (20.7% below fair value)
Industry Position: 51.1% below the Utilities - Regulated median (#61 of 449)
No single metric tells the full story. See the PCYO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pure Cycle Corp is a diversified land and water resource development company. The company designs, constructs, manages, operates, and maintains water and wastewater systems. The firm operates in three business segments namely Water and wastewater resource development, Land development, and the Single-Family Rental Segment. It generates maximum revenue from the Land development segment. The land resource development segment includes all the activities necessary to develop and sell finished lots.
72GF Score
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