Pure Cycle Corporation's Financial Performance in the Water Services Sector

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in providing water and wastewater services. It operates primarily in the Denver, Colorado area, focusing on sustainable water solutions. The company competes with other water resource management firms, such as Cadiz Inc. and Global Water Resources, Inc., in delivering efficient water services.

Pure Cycle's Return on Invested Capital (ROIC) is 6.42%, which is lower than its Weighted Average Cost of Capital (WACC) of 9.05%. This results in a ROIC/WACC ratio of 0.71, indicating that the company is not generating returns that exceed its cost of capital. Despite this, Pure Cycle has the highest ROIC/WACC ratio among its peers.

Cadiz Inc. (CDZI) has a negative ROIC of -21.18% and a WACC of 8.70%, leading to a ROIC/WACC ratio of -2.43. This suggests that Cadiz is significantly underperforming in terms of capital efficiency. Similarly, Global Water Resources, Inc. (GWRS) has a ROIC of 1.84% and a WACC of 7.31%, resulting in a ROIC/WACC ratio of 0.25, which is also below optimal levels.

Artesian Resources Corporation (ARTNA) and Parke Bancorp, Inc. (PKBK) have ROIC/WACC ratios of 0.66 and 0.17, respectively. Artesian's ROIC of 3.16% is closer to its WACC of 4.79%, while Parke Bancorp's ROIC of 2.26% is far below its WACC of 13.42%. Peoples Bancorp of North Carolina, Inc. (PEBK) has a ROIC of 1.97% and a WACC of 13.72%, resulting in a ROIC/WACC ratio of 0.14.

Despite Pure Cycle having the highest ROIC/WACC ratio among its peers, all companies in this analysis have ROICs below their respective WACCs. This indicates that none are currently generating returns that exceed their cost of capital, which could be a concern for investors seeking strong capital efficiency.

• Pure Cycle Corporation (NASDAQ:PCYO) has a Return on Invested Capital (ROIC) of 6.42% and a Weighted Average Cost of Capital (WACC) of 8.59%, indicating potential capital utilization inefficiencies.
• Comparatively, Artesian Resources Corporation exhibits the highest capital efficiency among peers with a ROIC to WACC ratio of 0.67.
• Most competitors, including Cadiz Inc. and Global Water Resources, Inc., show significant inefficiencies in generating returns on their capital.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in the development and management of water and land resources. It operates primarily in the water utility sector, providing water and wastewater services. The company competes with other firms in the industry, such as Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc.

In analyzing Pure Cycle's financial performance, the focus is on its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). Pure Cycle's ROIC is 6.42%, while its WACC is 8.59%. This results in a ROIC to WACC ratio of 0.75, indicating that the company is not generating returns that exceed its cost of capital. This suggests potential inefficiencies in how the company utilizes its capital.

Comparatively, Cadiz Inc. has a negative ROIC of -21.18% against a WACC of 8.46%, resulting in a ROIC to WACC ratio of -2.51. This indicates significant inefficiencies and potential financial distress. Artesian Resources Corporation, with a ROIC of 3.16% and a WACC of 4.71%, has a ROIC to WACC ratio of 0.67, the highest among the peers, suggesting relatively better capital efficiency.

Global Water Resources, Inc. has a ROIC of 1.84% and a WACC of 7.26%, leading to a ROIC to WACC ratio of 0.25. This indicates inefficiencies in generating returns on its capital. Parke Bancorp, Inc. and Peoples Bancorp of North Carolina, Inc. have ROIC to WACC ratios of 0.17 and 0.14, respectively, indicating they are not effectively generating returns above their cost of capital.

Overall, while Pure Cycle Corporation is performing better than most of its peers in terms of capital efficiency, it still has room for improvement to exceed its cost of capital. Artesian Resources Corporation stands out with the highest ROIC to WACC ratio, suggesting it is relatively more efficient in its capital utilization compared to the others.

• Pure Cycle Corporation (NASDAQ:PCYO) has a Return on Invested Capital (ROIC) of 6.42% and a Weighted Average Cost of Capital (WACC) of 8.59%, indicating potential capital utilization inefficiencies.
• Comparatively, Artesian Resources Corporation exhibits the highest capital efficiency among peers with a ROIC to WACC ratio of 0.67.
• Most competitors, including Cadiz Inc. and Global Water Resources, Inc., show significant inefficiencies in generating returns on their capital.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in the development and management of water and land resources. It operates primarily in the water utility sector, providing water and wastewater services. The company competes with other firms in the industry, such as Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc.

In analyzing Pure Cycle's financial performance, the focus is on its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). Pure Cycle's ROIC is 6.42%, while its WACC is 8.59%. This results in a ROIC to WACC ratio of 0.75, indicating that the company is not generating returns that exceed its cost of capital. This suggests potential inefficiencies in how the company utilizes its capital.

Comparatively, Cadiz Inc. has a negative ROIC of -21.18% against a WACC of 8.46%, resulting in a ROIC to WACC ratio of -2.51. This indicates significant inefficiencies and potential financial distress. Artesian Resources Corporation, with a ROIC of 3.16% and a WACC of 4.71%, has a ROIC to WACC ratio of 0.67, the highest among the peers, suggesting relatively better capital efficiency.

Global Water Resources, Inc. has a ROIC of 1.84% and a WACC of 7.26%, leading to a ROIC to WACC ratio of 0.25. This indicates inefficiencies in generating returns on its capital. Parke Bancorp, Inc. and Peoples Bancorp of North Carolina, Inc. have ROIC to WACC ratios of 0.17 and 0.14, respectively, indicating they are not effectively generating returns above their cost of capital.

Overall, while Pure Cycle Corporation is performing better than most of its peers in terms of capital efficiency, it still has room for improvement to exceed its cost of capital. Artesian Resources Corporation stands out with the highest ROIC to WACC ratio, suggesting it is relatively more efficient in its capital utilization compared to the others.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in water and land resource development. It focuses on providing water and wastewater services, as well as land development. In the competitive landscape, Pure Cycle is compared with companies like Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc. These companies operate in similar sectors, providing a basis for financial performance comparison.

Pure Cycle's ROIC of 6.42% is lower than its WACC of 8.61%, resulting in a ROIC to WACC ratio of 0.75. This indicates that Pure Cycle is not generating returns that exceed its cost of capital. Despite this, it performs better than most of its peers in terms of this metric. For instance, Cadiz Inc. has a negative ROIC of -21.18%, which is significantly below its WACC of 8.47%, leading to a ROIC to WACC ratio of -2.50.

Artesian Resources Corporation, with a ROIC of 3.16% and a WACC of 4.73%, has the highest ROIC to WACC ratio among the peers at 0.67. This suggests that while Artesian's returns do not exceed its cost of capital, it is relatively more efficient compared to others. Global Water Resources, Inc. and Parke Bancorp, Inc. also have ROICs lower than their WACCs, with ratios of 0.25 and 0.17, respectively, indicating inefficiency in generating returns over their cost of capital.

Peoples Bancorp of North Carolina, Inc. has the lowest ROIC to WACC ratio of 0.14 among the peers, with a ROIC of 1.97% and a WACC of 13.96%. This highlights its inefficiency in generating returns over its cost of capital. Despite Pure Cycle's ROIC to WACC ratio of 0.75 being higher than most peers, it still falls short of generating returns above its cost of capital, indicating room for improvement in its financial performance.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in water and land resource development. It focuses on providing water and wastewater services, as well as land development. In the competitive landscape, Pure Cycle is compared with companies like Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc. These companies operate in similar sectors, providing a basis for financial performance comparison.

Pure Cycle's ROIC of 6.42% is lower than its WACC of 8.61%, resulting in a ROIC to WACC ratio of 0.75. This indicates that Pure Cycle is not generating returns that exceed its cost of capital. Despite this, it performs better than most of its peers in terms of this metric. For instance, Cadiz Inc. has a negative ROIC of -21.18%, which is significantly below its WACC of 8.47%, leading to a ROIC to WACC ratio of -2.50.

Artesian Resources Corporation, with a ROIC of 3.16% and a WACC of 4.73%, has the highest ROIC to WACC ratio among the peers at 0.67. This suggests that while Artesian's returns do not exceed its cost of capital, it is relatively more efficient compared to others. Global Water Resources, Inc. and Parke Bancorp, Inc. also have ROICs lower than their WACCs, with ratios of 0.25 and 0.17, respectively, indicating inefficiency in generating returns over their cost of capital.

Peoples Bancorp of North Carolina, Inc. has the lowest ROIC to WACC ratio of 0.14 among the peers, with a ROIC of 1.97% and a WACC of 13.96%. This highlights its inefficiency in generating returns over its cost of capital. Despite Pure Cycle's ROIC to WACC ratio of 0.75 being higher than most peers, it still falls short of generating returns above its cost of capital, indicating room for improvement in its financial performance.

• Pure Cycle Corporation (NASDAQ:PCYO) has a Return on Invested Capital (ROIC) of 6.42%, which is lower than its Weighted Average Cost of Capital (WACC) of 8.68%, indicating inefficiencies in capital utilization.
• Despite its challenges, Pure Cycle has the highest ROIC to WACC ratio of 0.74 among its peers, leading the group in capital efficiency.
• Competitors like Cadiz Inc., Artesian Resources Corporation, and others show varying degrees of financial distress and inefficiency, with Pure Cycle Corporation emerging as a relative leader in ROIC to WACC ratio.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in water and land resource development. It focuses on providing water and wastewater services, as well as land development. The company operates primarily in Colorado, where it manages water rights and infrastructure. In the competitive landscape, Pure Cycle's peers include companies like Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc.

In analyzing Pure Cycle's financial performance, the Return on Invested Capital (ROIC) is a key metric. Pure Cycle's ROIC stands at 6.42%, which is lower than its Weighted Average Cost of Capital (WACC) of 8.68%. This indicates that the company is not generating returns that exceed its cost of capital, suggesting inefficiencies in capital utilization. Despite this, Pure Cycle has the highest ROIC to WACC ratio of 0.74 among its peers.

Cadiz Inc. presents a stark contrast with a negative ROIC of -21.18% and a WACC of 8.54%. This results in a ROIC to WACC ratio of -2.48, highlighting significant financial distress and poor capital efficiency. Artesian Resources Corporation, with a ROIC of 3.16% and a WACC of 4.77%, also shows inefficiencies, but its ROIC to WACC ratio of 0.66 is closer to Pure Cycle's.

Global Water Resources, Inc. and Parke Bancorp, Inc. both exhibit ROIC figures lower than their respective WACC, with ratios of 0.25 and 0.17, respectively. This indicates that these companies are also struggling to generate returns above their cost of capital. Peoples Bancorp of North Carolina, Inc. has the lowest ROIC to WACC ratio of 0.14, further emphasizing inefficiencies in capital utilization.

Overall, while Pure Cycle Corporation leads its peer group in terms of ROIC to WACC ratio, all companies in this analysis face challenges in generating returns that exceed their cost of capital. This highlights potential areas for improvement in capital efficiency across the board.