Pure Cycle Corporation
PCYO Utilities Utilities Regulated Water
Pure Cycle Corporation’s revenue for fiscal 2025 (year ended August 2025) was $26.1 million, down 9.25% from fiscal 2024. In the quarter to May 2026, revenue grew 60.0%, EPS grew 33.3%, free cash flow grew 492.1% and total debt rose 105.9%, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.
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Pure Cycle Corporation (PCYO) Altman Z-score
Pure Cycle Corporation's Altman Z-score for fiscal 2025 is 7.65, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 7.65 | (1.34) |
| FY2024 | 8.99 | (1.37) |
| FY2023 | 10.35 | 1.19 |
| FY2022 | 9.16 | (5.40) |
| FY2021 | 14.56 | (2.72) |
| FY2020 | 17.28 | 1.11 |
| FY2019 | 16.18 | (47.71) |
| FY2018 | 63.89 | 20.32 |
| FY2017 | 43.57 | 8.51 |
| FY2016 | 35.06 | 12.19 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.12 | — | 0.15 | |
| Retained earnings / total assets | (0.20) | — | −0.28 | |
| EBIT / total assets | 0.05 | — | 0.16 | |
| Market value of equity / total liabilities | 12.44 | — | 7.47 | |
| Sales / total assets | 0.16 | — | 0.16 | |
| Altman Z-score | Safe zone | 7.65 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 8.14 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CWCO Consolidated Water Co. Ltd. compare | 13.0× |
| PCYO Pure Cycle Corporation | 7.6× |
| MSEX Middlesex Water Company compare | 1.1× |
| YORW The York Water Company compare | 1.1× |
| CWT California Water Service Group compare | 0.8× |
| ARTNA Artesian Resources Corporation compare | 0.7× |
| HTO H2O America compare | 0.7× |
| GWRS Global Water Resources, Inc. compare | 0.5× |
| CDZI Cadiz, Inc. compare | −5.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets