Pure CyclePCYO -1.68%74 Return-on-Tangible-Equity is 2.98% as of Feb. 2026, which is 61% below its 10-year median of 7.64. GuruFocus rates PCYO with a GF Score™ of 74/100 and a GF Value™ of $14.12 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 496 Utilities - Regulated companies, Pure Cycle ranks worse than 54.03% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Pure Cycle's annualized net income for the quarter that ended in Feb. 2026 was $4.42 Mil. Pure Cycle's average shareholder tangible equity for the quarter that ended in Feb. 2026 was $148.09 Mil. Therefore, Pure Cycle's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 2.98%.
The historical rank and industry rank for Pure Cycle's Return-on-Tangible-Equity or its related term are showing as below:
PCYO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.51 Med: 7.64 Max: 21.82
Current: 9.88
During the past 13 years, Pure Cycle's highest Return-on-Tangible-Equity was 21.82%. The lowest was -2.51%. And the median was 7.64%.
PCYO's Return-on-Tangible-Equity is ranked worse than 54.03% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs PCYO: 9.88
Pure Cycle (NAS:PCYO) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Pure Cycle Return-on-Tangible-Equity Related Terms
Pure Cycle Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pure Cycle's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Water subindustry, Pure Cycle's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pure Cycle's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.98% mean?
Pure Cycle (PCYO) has a Return-on-Tangible-Equity of 2.98% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pure Cycle and its competitors. This is 61% below median its historical median of 7.64. According to the industry distribution chart, Pure Cycle ranks #268 out of 496 companies in the Utilities - Regulated industry, placing it in the top 54%.
Is Pure Cycle's Return-on-Tangible-Equity too high?
Pure Cycle's current Return-on-Tangible-Equity of 2.98% is 61% below median its 10-year median of 7.64. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. Pure Cycle's value of 2.98% is 72.7% below this industry median. Based on the distribution chart, Pure Cycle ranks #268 out of 496 companies in the Utilities - Regulated industry, which is below the industry midpoint. 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 Return-on-Tangible-Equity compare to CDZI and GWRS?
According to the Utilities - Regulated industry distribution chart, Pure Cycle ranks #268 out of 496 companies for Return-on-Tangible-Equity. This places Pure Cycle in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.91. Pure Cycle's value of 2.98% is 72.7% below this benchmark. While the company's 10-year median is 7.64 vs. the industry median of 10.91, 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 Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pure Cycle's current Return-on-Tangible-Equity of 2.98% is 72.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pure Cycle and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pure Cycle's current Return-on-Tangible-Equity is 2.98%, which is 61% below median its own 10-year median of 7.64. 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 $14.12, compared to a current price of $10.84 — trading 23.2% below its estimated fair value. The current Return-on-Tangible-Equity is 2.98%, which is 61% below median its 10-year median of 7.64 and 72.7% below the Utilities - Regulated industry median of 10.91. Pure Cycle's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Pure Cycle (PCYO), the current Return-on-Tangible-Equity is 2.98% 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 $10.84 is trading 23.2% below its estimated GF Value™ of $14.12.
GuruFocus considers Pure Cycle to be Modestly Undervalued.
Key valuation signals for PCYO:
Return-on-Tangible-Equity: 2.98% (61% below median its 10-year median of 7.64)
GF Value™: $14.12 vs. price of $10.84 (23.2% below fair value)
Industry Position: 72.7% below the Utilities - Regulated median (#268 of 496)
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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