Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Pure Cycle has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Pure Cycle Corp shows strong financial strength.
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.
Pure Cycle's Interest Coverage for the quarter that ended in May. 2026 was 13.46.
Pure Cycle's debt to revenue ratio for the quarter that ended in May. 2026 was 0.43.
As of today, Pure Cycle's Altman Z-Score is 7.04.
Pure Cycle (NAS:PCYO) Financial Strength Explanation
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.
Pure Cycle has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Pure Cycle Financial Strength Related Terms
PCYO vs GWRS, CDZI, ARTNA: Financial Strength Comparison
For the Utilities - Regulated Water subindustry, Pure Cycle'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.
Pure Cycle Financial Strength vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's Financial Strength distribution charts can be found below:
* The bar in red indicates where Pure Cycle'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.
Pure Cycle has a Z-score of 7.04, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 7.04 is strong.
* 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 Financial Strength of 8 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Pure Cycle and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, Pure Cycle's Financial Strength has ranged from 8.00 to 10.00.
Is Pure Cycle's Financial Strength too high?
Pure Cycle's current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. 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 Financial Strength compare to GWRS and CDZI?
Pure Cycle's Financial Strength of 8 can be compared against companies in the Utilities - Regulated industry. Historically, Pure Cycle's own Financial Strength has ranged from 8.00 to 10.00 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 Utilities - Regulated company?
A good Financial Strength depends on the Utilities - Regulated 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 Pure Cycle and its competitors. Pure Cycle's current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. 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 $14.51, compared to a current price of $11.19 — trading 22.9% below its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Pure Cycle (PCYO), the current Financial Strength is 8 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 $11.19 is trading 22.9% below its estimated GF Value™ of $14.51.
GuruFocus considers Pure Cycle to be Modestly Undervalued.
Key valuation signals for PCYO:
Financial Strength: 8 (11% below median its 10-year median of 9.00)
GF Value™: $14.51 vs. price of $11.19 (22.9% 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
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PCYO has been successfully added to your 
