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Pure CyclePCYO +1.22%74 Net Margin % is 35.86% as of May. 2026, which is 23% above its 10-year median of 29.17. GuruFocus rates PCYO with a GF Score™ of 74/100 and a GF Value™ of $14.45 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 500 Utilities - Regulated companies, Pure Cycle ranks better than 96.8% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Pure Cycle's Net Income for the
three
months ended in May. 2026 was $2.95 Mil. Pure Cycle's Revenue for the
three
months ended in May. 2026 was $8.22 Mil. Therefore, Pure Cycle's net margin for the quarter that ended in May. 2026 was 35.86%.
The historical rank and industry rank for Pure Cycle's Net Margin % or its related term are showing as below:
PCYO'
s Net Margin % Range Over the Past 10 Years
Min: -290.04 Med: 29.17 Max: 117.43
Current: 43.66
PCYO's Net Margin % is ranked better than 96.8% of 500
companies
in the Utilities - Regulated industry
Industry Median: 8.595
vs PCYO: 43.66
Pure Cycle (NAS:PCYO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Pure Cycle Net Margin % Related Terms
Pure Cycle Net Margin % Historical Data
* Premium members only.
The historical data trend for Pure Cycle's Net Margin % 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.
PCYO vs CDZI, GWRS, ARTNA: Net Margin % Comparison
For the Utilities - Regulated Water subindustry, Pure Cycle's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's Net Margin % distribution charts can be found below:
* The bar in red indicates where Pure Cycle's Net Margin % falls into.
* 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 Net Margin % of 35.86% as of May. 2026. Net margin is the ratio of total net income to net sales. View historical data on Pure Cycle and its competitors. This is 23% above median its historical median of 29.17. According to the industry distribution chart, Pure Cycle ranks #16 out of 500 companies in the Utilities - Regulated industry, placing it in the top 3.2%.
Is Pure Cycle's Net Margin % too high?
Pure Cycle's current Net Margin % of 35.86% is 23% above median its 10-year median of 29.17. The Utilities - Regulated industry median Net Margin % is 8.60. Pure Cycle's value of 35.86% is 317.2% above this industry median. Based on the distribution chart, Pure Cycle ranks #16 out of 500 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 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pure Cycle's Net Margin % compare to CDZI and GWRS?
According to the Utilities - Regulated industry distribution chart, Pure Cycle ranks #16 out of 500 companies for Net Margin %. This places Pure Cycle in the top 3% of its industry — outperforming the majority of peers. The industry median Net Margin % is 8.60. Pure Cycle's value of 35.86% is 317.2% above this benchmark. While the company's 10-year median is 29.17 vs. the industry median of 8.60, Pure Cycle has consistently been above 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 Net Margin % for an Utilities - Regulated company?
The median Net Margin % among Utilities - Regulated companies is 8.60, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pure Cycle's current Net Margin % of 35.86% is 317.2% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Pure Cycle and its competitors. For the Utilities - Regulated industry, the median Net Margin % is 8.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pure Cycle's current Net Margin % is 35.86%, which is 23% above median its own 10-year median of 29.17. 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 $14.45, compared to a current price of $10.77 — trading 25.5% below its estimated fair value. The current Net Margin % is 35.86%, which is 23% above median its 10-year median of 29.17 and 317.2% above the Utilities - Regulated industry median of 8.60. Pure Cycle's overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Pure Cycle (PCYO), the current Net Margin % is 35.86% as of May. 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 $10.77 is trading 25.5% below its estimated GF Value™ of $14.45.
GuruFocus considers Pure Cycle to be Modestly Undervalued.
Key valuation signals for PCYO:
Net Margin %: 35.86% (23% above median its 10-year median of 29.17)
GF Value™: $14.45 vs. price of $10.77 (25.5% below fair value)
Industry Position: 317.2% above the Utilities - Regulated median (#16 of 500)
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.
74GF Score
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