MeritValue

PURE CYCLE CORP

PCYOdata completeness 88%16 fiscal years on file
The thesis, from the filings

PURE CYCLE CORP earns about 12% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $4.98 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$17.1M1$23M2$14.6M3$28.7M4$26.1M4
Net income$20.1M5$9.62M6$4.7M7$11.6M8$13.1M8
Operating cash flow$3.46M9$17.5M10−$2.34M11$2.31M12$13.2M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt———$6.89M13$13.6M14
Cash & equivalents$20.1M15$34.9M16$26M17$22.1M18$21.9M18
Diluted shares24.1M24.2M24.1M24.1M24.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$59.06
your share of equity
Profit it earned you last year
$5.42
Free cash flow it threw off
—
Debt you’d be carrying
$5.62

10 shares is a claim on $59.06 of net worth that earned you $5.42 last year, against $5.62 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
12% avg · 5y
FY21 24%FY22 12%FY23 5%FY24 10%FY25 10%

It earned an average 12% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 97% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$4.98
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$11.6M
  • growthAssumed0.0%
Graham Number
$8.47
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-08-31 · accession 0001558370-22-017799 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-08-31 · accession 0001558370-23-019110 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-08-31 · accession 0001558370-24-015541 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-08-31 · accession 0001104659-25-110312 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-08-31 · accession 0001558370-22-017799 (NetIncomeLoss)
  6. 10-K · period ending 2022-08-31 · accession 0001558370-23-019110 (NetIncomeLoss)
  7. 10-K · period ending 2023-08-31 · accession 0001558370-24-015541 (NetIncomeLoss)
  8. 10-K · period ending 2024-08-31 · accession 0001104659-25-110312 (NetIncomeLoss)
  9. 10-K · period ending 2021-08-31 · accession 0001558370-22-017799 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-08-31 · accession 0001558370-23-019110 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-08-31 · accession 0001558370-24-015541 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-08-31 · accession 0001104659-25-110312 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2024-08-31 · accession 0001558370-24-015541 (LongTermDebt)
  14. 10-K · period ending 2025-08-31 · accession 0001104659-25-110312 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-08-31 · accession 0001558370-22-017799 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-08-31 · accession 0001558370-23-019110 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-08-31 · accession 0001558370-24-015541 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-08-31 · accession 0001104659-25-110312 (CashAndCashEquivalentsAtCarryingValue)