Pure CyclePCYO +3.08%72 ROE % 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 72/100 and a GF Value™ of $14.11 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 503 Utilities - Regulated companies, Pure Cycle ranks better than 58.85% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Pure Cycle's annualized net income for the quarter that ended in Feb. 2026 was $4.42 Mil. Pure Cycle's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was $148.09 Mil. Therefore, Pure Cycle's annualized ROE % for the quarter that ended in Feb. 2026 was 2.98%.
The historical rank and industry rank for Pure Cycle's ROE % or its related term are showing as below:
PCYO'
s ROE % Range Over the Past 10 Years
Min: -2.51 Med: 7.64 Max: 21.77
Current: 9.88
During the past 13 years, Pure Cycle's highest ROE % was 21.77%. The lowest was -2.51%. And the median was 7.64%.
PCYO's ROE % is ranked better than 58.85% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs PCYO: 9.88
Pure Cycle (NAS:PCYO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Pure Cycle ROE % Related Terms
Pure Cycle ROE % Historical Data
* Premium members only.
The historical data trend for Pure Cycle's ROE % 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.
For the Utilities - Regulated Water subindustry, Pure Cycle's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pure Cycle's ROE % distribution charts can be found below:
* The bar in red indicates where Pure Cycle's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Pure Cycle (PCYO) has a ROE % of 2.98% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total 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 #207 out of 503 companies in the Utilities - Regulated industry, placing it in the top 41.2%.
Is Pure Cycle's ROE % too high?
Pure Cycle's current ROE % of 2.98% is 61% below median its 10-year median of 7.64. The Utilities - Regulated industry median ROE % is 8.62. Pure Cycle's value of 2.98% is 65.4% below this industry median. Based on the distribution chart, Pure Cycle ranks #207 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. 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 ROE % compare to GWRS and ARTNA?
According to the Utilities - Regulated industry distribution chart, Pure Cycle ranks #207 out of 503 companies for ROE %. This puts Pure Cycle in the upper half of its industry. The industry median ROE % is 8.62. Pure Cycle's value of 2.98% is 65.4% below this benchmark. While the company's 10-year median is 7.64 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pure Cycle's current ROE % of 2.98% is 65.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pure Cycle and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pure Cycle's current ROE % 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 $14.11, compared to a current price of $11.37 — trading 19.4% below its estimated fair value. The current ROE % is 2.98%, which is 61% below median its 10-year median of 7.64 and 65.4% below the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Pure Cycle (PCYO), the current ROE % 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 $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:
ROE %: 2.98% (61% below median its 10-year median of 7.64)
GF Value™: $14.11 vs. price of $11.37 (19.4% below fair value)
Industry Position: 65.4% below the Utilities - Regulated median (#207 of 503)
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.
72GF Score
Get the complete analysis for PCYO
ROE % 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 
