- PCYO's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 69.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PCYO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, PCYO has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for PURE CYCLE CORP is currently very high, coming in at 80.14%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -61.90% is in-line with the industry average.
- PCYO has underperformed the S&P 500 Index, declining 20.00% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has significantly decreased to -$1.44 million or 193.26% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 69 points (0.4%) at 16,675 as of Tuesday, May 27, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,940 issues advancing vs. 1,055 declining with 160 unchanged. The Utilities sector as a whole closed the day up 0.4% versus the S&P 500, which was up 0.6%. Top gainers within the Utilities sector included GreenHunter Resources ( GRH), up 2.0%, Cadiz ( CDZI), up 1.6%, Pure Cycle ( PCYO), up 5.0%, Delta Natural Gas ( DGAS), up 2.5% and Artesian Resource ( ARTNA), up 1.7%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: Pure Cycle ( PCYO) is one of the companies that pushed the Utilities sector higher today. Pure Cycle was up $0.28 (5.0%) to $5.82 on light volume. Throughout the day, 42,179 shares of Pure Cycle exchanged hands as compared to its average daily volume of 69,000 shares. The stock ranged in a price between $5.38-$5.83 after having opened the day at $5.62 as compared to the previous trading day's close of $5.54. Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area. Pure Cycle has a market cap of $133.2 million and is part of the utilities industry. Shares are down 12.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Pure Cycle a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Pure Cycle as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself. Highlights from TheStreet Ratings analysis on PCYO go as follows: