Dept Breakdown
5.49 Million
Total Debt
Debt Current
3.52 Million
Debt Non Current
5.49 Million
Total Debt USD
Will the price upswing continue for Pure Cycle?
 | By Raphi Shpitalnik | Macroaxis Story |
In this thesis, we will do a simple analysis of Pure Cycle's future potential for current institutional investors and investors who consider a position in the company. I will inspect the possibilities of making Pure Cycle into a steady grower in August in spite of the current mess. Pure Cycle Enterprise Value is quite stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at about 315.99 Million. Invested Capital is projected to rise to about 70 M this year, although the value of Average Equity will most likely fall to about 77.9 M. We estimate Pure Cycle as currently overvalued. The real value is approaching 7.20 per share. We were able to analyze thirty-four available financial ratios for Pure Cycle, which can be compared to its competitors. To make sure the equity is not overpriced, please check all Pure Cycle financials, including its current ratio, and the relationship between the ebitda and beta . Given that Pure Cycle has a number of shares shorted of 233.5 K, we recommend you to check out Pure Cycle recent market performance to make sure the company can sustain itself down the road. Use Pure Cycle to protect your portfolios against small markets fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Pure Cycle to be traded at $8.81 in 30 days.
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Reviewed by Michael Smolkin
Pure Cycle currently holds 226.41 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the stock is not taking enough advantage from borrowing. This firm has a current ratio of 2.69, suggesting that it is liquid enough and is able to pay its financial obligations when due. We provide buy or sell recommendations to complement the recent expert consensus on Pure Cycle. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Pure or Cadiz is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step. How important is Pure Cycle's Liquidity
Pure Cycle financial leverage refers to using borrowed capital as a funding source to finance Pure Cycle ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pure Cycle financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Pure Cycle's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Pure Cycle's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Pure Cycle's total debt and its cash.
Correlation Between Pure and Cadiz Inc
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Pure Cycle together with similar or unrelated positions with a negative correlation. For example, you can also add Cadiz to your portfolio. If Cadiz is not perfectly correlated to Pure Cycle it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Pure Cycle, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Pure Cycle and Cadiz in your portfolio? Please note if you are using this as a pair-trade strategy between Pure Cycle and Cadiz, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between PCYO and CDZI for more information.Details
The firm reported previous year revenue of 28.64 M. Net Income was 10.31 M with profit before overhead, payroll, taxes, and interest of 7.39 M. The company has a beta of 0.0972. Let's try to break down what Pure Cycle's beta means in this case. As returns on the market increase, Pure Cycle returns are expected to increase less than the market. However, during the bear market, the loss on holding Pure Cycle will be expected to be smaller as well. The beta indicator helps investors understand whether Pure Cycle moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Pure Cycle deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Pure Cycle reported previous year revenue of 28.64 M. Net Income was 10.31 M with profit before overhead, payroll, taxes, and interest of 7.39 M. Pure Cycle Net Income Per Employee is increasing over the last 8 years. Also, Pure Cycle Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Pure Cycle. Please refer to our Terms of Use for any information regarding our disclosure principles.