(PCYO) Pure Cycle - Ratings and Ratios

Pure Cycle Corporation (NASDAQ:PCYO) is a utility company specializing in wholesale water and wastewater services, operating primarily in the United States. The company is divided into two main segments: Wholesale Water and Wastewater Services, and Land Development. In the water segment, Pure Cycle manages the production, storage, treatment, and distribution of water, as well as the collection and treatment of wastewater. The land development segment focuses on creating master-planned communities and constructing single-family homes for lease. The company serves a diverse customer base, including residential, commercial, and industrial users. Established in 1976, Pure Cycle is headquartered in Watkins, Colorado.

From a technical perspective, PCYO has shown recent trading activity with an average 20-day volume of 33,540 shares. The stock is currently priced at $11.63, slightly below its 20-day SMA of $11.67 but above its 200-day SMA of $10.99. The 50-day SMA stands at $11.91, indicating a recent downtrend. The ATR of 0.34 suggests moderate volatility. Fundamental analysis highlights a market cap of $274 million, with a P/E ratio of 20.69 and a P/B ratio of 2.09, indicating a premium valuation relative to book value. The P/S ratio of 9.41 reflects a high revenue multiple, while the return on equity (RoE) of 10.09% points to decent profitability.

3-month forecast: Based on the convergence of SMAs, PCYO is expected to experience sideways trading with potential downside risk as the 20-day SMA ($11.67) is slightly above the current price ($11.63). Support is likely at the 200-day SMA ($10.99), while resistance may form near the 50-day SMA ($11.91). The ATR of 0.34 suggests price fluctuations within a narrow range. Fundamentally, the high P/S ratio and premium valuation may limit upside unless driven by strong earnings or sector tailwinds. Investors should monitor water utility sector trends and company-specific developments for clearer directional signals.