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) Beneish M-score
Pure Cycle Corporation's Beneish M-score for fiscal 2025 is −2.55; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.55 | (0.66) |
| FY2024 | −1.89 | 0.49 |
| FY2023 | −2.38 | (0.03) |
| FY2022 | −2.36 | 0.49 |
| FY2021 | −2.84 | (0.66) |
| FY2020 | −2.18 | (0.38) |
| FY2019 | −1.80 | (2.48) |
| FY2018 | 0.68 | 2.76 |
| FY2017 | −2.08 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.00 | — | 0.92 | |
| Gross margin index | 1.12 | — | 0.59 | |
| Asset quality index Asset quality not computable — index set to 1 | 1.00 | — | Set to 1 | 0.40 |
| Sales growth index | 0.91 | — | 0.81 | |
| Depreciation index Depreciation not reported — index set to 1 | 1.00 | — | Set to 1 | 0.12 |
| SG&A index | 1.24 | — | −0.21 | |
| Total accruals to total assets | 0.00 | — | −0.00 | |
| Leverage index | 1.01 | — | −0.33 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.55 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| CWCO Consolidated Water Co. Ltd. compare | −3.2× |
| HTO H2O America compare | −2.7× |
| ARTNA Artesian Resources Corporation compare | −2.7× |
| CDZI Cadiz, Inc. compare | −2.6× |
| PCYO Pure Cycle Corporation | −2.5× |
| MSEX Middlesex Water Company compare | −2.5× |
| GWRS Global Water Resources, Inc. compare | −2.5× |
| CWT California Water Service Group compare | −2.5× |
| YORW The York Water Company compare | −2.4× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI