Pure Cycle Stock Beta
| PCYO Stock | USD 10.60 0.03 0.28% |
By evaluating key metrics such as revenue growth, profitability, cash flow trends, and balance sheet strength, investors can better assess Pure Cycle's long-term financial health and intrinsic value.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools. Pure Cycle Company Beta Analysis
Pure Cycle's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Pure Cycle Beta | 1.3 |
Most of Pure Cycle's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Pure Cycle is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Pure Cycle has a Beta of 1.299. This is 188.67% higher than that of the Water Utilities sector and significantly higher than that of the Utilities industry. The beta for all United States stocks is notably lower than that of the firm.
Pure Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Pure Cycle's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Pure Cycle could also be used in its relative valuation, which is a method of valuing Pure Cycle by comparing valuation metrics of similar companies.Pure Cycle is currently under evaluation in beta category among its peers.
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Pure Cycle will likely underperform.
Pure Fundamentals
| Return On Equity | 0.11 | ||||
| Return On Asset | 0.0493 | ||||
| Profit Margin | 0.47 % | ||||
| Operating Margin | (0.33) % | ||||
| Current Valuation | 244.69 M | ||||
| Shares Outstanding | 24.08 M | ||||
| Shares Owned By Insiders | 3.28 % | ||||
| Shares Owned By Institutions | 67.15 % | ||||
| Number Of Shares Shorted | 223.76 K | ||||
| Price To Earning | 26.55 X | ||||
| Price To Book | 1.89 X | ||||
| Price To Sales | 8.61 X | ||||
| Revenue | 28.75 M | ||||
| Gross Profit | 21.45 M | ||||
| EBITDA | 18.17 M | ||||
| Net Income | 11.61 M | ||||
| Cash And Equivalents | 34.89 M | ||||
| Cash Per Share | 1.46 X | ||||
| Total Debt | 7.04 M | ||||
| Debt To Equity | 0.04 % | ||||
| Current Ratio | 3.49 X | ||||
| Book Value Per Share | 5.58 X | ||||
| Cash Flow From Operations | 2.21 M | ||||
| Short Ratio | 3.10 X | ||||
| Earnings Per Share | 0.58 X | ||||
| Target Price | 6.55 | ||||
| Number Of Employees | 39 | ||||
| Beta | 1.3 | ||||
| Market Capitalization | 257.62 M | ||||
| Total Asset | 147.35 M | ||||
| Retained Earnings | (45.5 M) | ||||
| Working Capital | 28.51 M | ||||
| Current Asset | 29.09 M | ||||
| Current Liabilities | 482 K | ||||
| Net Asset | 147.35 M |
About Pure Cycle Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Pure Cycle's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Pure Cycle using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Pure Cycle based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Pure Cycle
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pure Cycle position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pure Cycle will appreciate offsetting losses from the drop in the long position's value.Moving against Pure Stock
| 0.63 | CWT | California Water Service | PairCorr |
| 0.63 | ED | Consolidated Edison | PairCorr |
| 0.52 | ARTNA | Artesian Resources | PairCorr |
| 0.45 | YORW | York Water | PairCorr |
| 0.43 | AWK | American Water Works | PairCorr |
The ability to find closely correlated positions to Pure Cycle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pure Cycle when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pure Cycle - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pure Cycle to buy it.
The correlation of Pure Cycle is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pure Cycle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pure Cycle moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pure Cycle can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Pure Cycle Piotroski F Score and Pure Cycle Altman Z Score analysis. To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pure Cycle. If investors know Pure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pure Cycle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Pure Cycle is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Cycle's value that differs from its market value or its book value, called intrinsic value, which is Pure Cycle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pure Cycle's market value can be influenced by many factors that don't directly affect Pure Cycle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pure Cycle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pure Cycle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Cycle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.