PCYO (Pure Cycle) ROCE %: 4.22% (As of Feb. 2026)

What is Pure Cycle ROCE %?

Pure Cycle PCYO +3.08% 72 ROCE % is 4.22% as of Feb. 2026. GuruFocus rates PCYO with a GF Score™ of 72/100 and a GF Value™ of $14.11 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Pure Cycle's annualized ROCE % for the quarter that ended in Feb. 2026 was 4.22%.

Pure Cycle (NAS:PCYO) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Pure Cycle ROCE % Related Terms

Pure Cycle ROCE % Historical Data

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The historical data trend for Pure Cycle's ROCE % 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.

Pure Cycle ROCE % Chart

Pure Cycle Annual Data

Trend

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Aug24

Aug25

ROCE %

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28.25

11.47

5.24

12.14

12.40

Pure Cycle Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															3.34	8.62	22.49	15.95	4.22

72GF Score

Pure Cycle Corp PCYO

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Pure Cycle ROCE % Calculation

Pure Cycle's annualized ROCE % for the fiscal year that ended in Aug. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2025 )		(A: Aug. 2024 )		(A: Aug. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2025 )		(A: Aug. 2024 )		(A: Aug. 2025 )
	=	17.896	/	( ( (147.354 - 9.349)	+	(162.279 - 11.619) )	/ 2 )
	=	17.896	/	( (138.005	+	150.66)	/ 2 )
	=	17.896	/	144.3325
	=	12.40 %

Pure Cycle's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	6.616	/	( ( (168.069 - 11.488)	+	(166.636 - 9.919) )	/ 2 )
	=	6.616	/	( ( 156.581	+	156.717 )	/ 2 )
	=	6.616	/	156.649
	=	4.22 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 4.22% mean?

Pure Cycle (PCYO) has a ROCE % of 4.22% as of Feb. 2026.

Is Pure Cycle's ROCE % too high?

Pure Cycle's current ROCE % is 4.22%. The Utilities - Regulated industry median ROCE % is 6.95. Pure Cycle's value of 4.22% is 39.3% below this industry median. Overall, Pure Cycle has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Pure Cycle's ROCE % compare to GWRS and ARTNA?

Pure Cycle's ROCE % of 4.22% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.95. Pure Cycle's value of 4.22% is 39.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Utilities - Regulated company?

The median ROCE % among Utilities - Regulated companies is 6.95, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pure Cycle's current ROCE % of 4.22% is 39.3% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pure Cycle's current ROCE % is 4.22%. 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 $14.11, compared to a current price of $11.37 — trading 19.4% below its estimated fair value. The current ROCE % is 4.22% and 39.3% below the Utilities - Regulated industry median of 6.95. Pure Cycle's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Pure Cycle (PCYO), the current ROCE % is 4.22% 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 $11.37 is trading 19.4% below its estimated GF Value™ of $14.11. GuruFocus considers Pure Cycle to be Modestly Undervalued.

Key valuation signals for PCYO:

ROCE %: 4.22%
GF Value™: $14.11 vs. price of $11.37 (19.4% below fair value)
GF Score™: 72/100 with 3 warning signs
Industry Position: 39.3% below the Utilities - Regulated median

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 Business Description

Industry Utilities Utilities - Regulated

Comparable Companies GWRS ARTNA CDZI CWCO YORW CETI MSEX AWK BSP:SBSP3 LSE:UU.LSE:SVT WTRG HKSE:00270 DFM:EMPOWER BSP:CSMG3 SHSE:600323 HKSE:00371 LSE:PNN SZSE:000598 SHSE:601158

Address 34501 E. Quincy Avenue, Building 1, Suite D, Watkins, CO, USA, 80137

Website https://www.purecyclewater.com

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.

72GF Score

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$11.37

Price

$14.11

GF Value

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