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Pure Cycle's Operating Income for the
three
months ended in May. 2026 was $2.11 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was $12.70 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Pure Cycle's Operating Income for the
three
months ended in May. 2026 was $2.11 Mil. Pure Cycle's Revenue for the
three
months ended in May. 2026 was $8.22 Mil. Therefore, Pure Cycle's Operating Margin % for the quarter that ended in May. 2026 was 25.71%.
Good Sign:
Pure Cycle Corp operating margin is expanding. Margin expansion is usually a good sign.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Pure Cycle's annualizedROC % for the quarter that ended in May. 2026 was 3.96%.
Pure Cycle's annualizedROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 20.99%.
Pure Cycle (NAS:PCYO) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Pure Cycle's annualizedROC % for the quarter that ended in May. 2026 is calculated as:
* 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.
4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.
Be Aware
Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Pure Cycle Operating Income Related Terms
Pure Cycle Operating Income Historical Data
* Premium members only.
The historical data trend for Pure Cycle's Operating Income 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.
Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.
Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.70 Mil.
* 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 Operating Income of $12.70 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Pure Cycle and its competitors.
Is Pure Cycle's Operating Income too high?
Pure Cycle's current Operating Income is $12.70 Mil. Overall, Pure Cycle has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pure Cycle's Operating Income compare to CDZI and GWRS?
Pure Cycle's Operating Income of $12.70 Mil can be compared against companies in the Utilities - Regulated industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Utilities - Regulated company?
A good Operating Income depends on the Utilities - Regulated industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Pure Cycle and its competitors. Pure Cycle's current Operating Income is $12.70 Mil. 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 $14.44, compared to a current price of $10.53 — trading 27.1% below its estimated fair value. The current Operating Income is $12.70 Mil. Pure Cycle's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Pure Cycle (PCYO), the current Operating Income is $12.70 Mil 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 $10.53 is trading 27.1% below its estimated GF Value™ of $14.44.
GuruFocus considers Pure Cycle to be Modestly Undervalued.
Key valuation signals for PCYO:
Operating Income: $12.70 Mil
GF Value™: $14.44 vs. price of $10.53 (27.1% below fair value)
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.
73GF Score
Get the complete analysis for PCYO
Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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