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PureCycle Technologies has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
PureCycle Technologies Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
PureCycle Technologies did not have earnings to cover the interest expense.
PureCycle Technologies's debt to revenue ratio for the quarter that ended in Mar. 2026 was 26.24.
As of today, PureCycle Technologies's Altman Z-Score is -0.97.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
PureCycle Technologies has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
PureCycle Technologies Financial Strength Related Terms
PCT vs ERII, ZONE, ARQ: Financial Strength Comparison
For the Pollution & Treatment Controls subindustry, PureCycle Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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.
PureCycle Technologies Financial Strength vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, PureCycle Technologies's Financial Strength distribution charts can be found below:
* The bar in red indicates where PureCycle Technologies's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
PureCycle Technologies has a Z-score of -0.97, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.97 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
PureCycle Technologies (PCT) has a Financial Strength of 2 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on PureCycle Technologies and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, PureCycle Technologies' Financial Strength has ranged from 2.00 to 7.00.
Is PureCycle Technologies' Financial Strength too high?
PureCycle Technologies' current Financial Strength of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, PureCycle Technologies has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does PureCycle Technologies' Financial Strength compare to ERII and ZONE?
PureCycle Technologies' Financial Strength of 2 can be compared against companies in the Industrial Products industry. Historically, PureCycle Technologies' own Financial Strength has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on PureCycle Technologies and its competitors. PureCycle Technologies's current Financial Strength is 2, which is 60% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PureCycle Technologies stock overvalued right now?
PureCycle Technologies (PCT) has a current Financial Strength of 2. The current Financial Strength is 2, which is 60% below median its 10-year median of 5.00. PureCycle Technologies' overall GF Score™ is 25/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For PureCycle Technologies (PCT), the current Financial Strength is 2 as of Mar. 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.
PureCycle Technologies Inc is a Florida-based corporation focused on commercializing a patented dissolution process to physically separate the polymer from other plastics, color, and contaminants (the Technology), originally developed by The Procter & Gamble Company (P&G), for restoring waste polypropylene into resin with near-virgin characteristics, called PureFive resin. PureFive resin represents the family of recycled resin products produced, including ultra-pure resin and other grades used for compounding to meet customer specifications, which has similar properties and applicability for reuse as virgin polypropylene. It has a single operating segment, which encompasses integrated business activities related to the recycling of polypropylene into resins.
25GF Score
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