Pure Cycle Corporation — Earnings Quality Grade C
PCYO · Utilities
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 19 days, change -0 days YoY
AR growth -9.6% vs revenue growth -9.3%
Revenue -9.3%, CFFO 469.4%. Cash follows revenue
Expense Quality
Inventory growth 102.6% exceeds COGS 11.9%
CapEx growth 297.7% is >2x revenue growth -9.3%
SG&A/Gross Profit = 48.5%. Normal
Gross margin swung -7.3pp (68.7% → 61.4%)
Cash Flow Quality
CFFO/NI = 1.00. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -0.0%. Low accruals
Cash $0.0B covers debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.3x. Healthy
Other assets grew 33.7% vs revenue -9.3%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -100% YoY. Normal
Manipulation Score
M-Score = -2.45 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25