- PCYO's very impressive revenue growth greatly exceeded the industry average of 7.8%. Since the same quarter one year prior, revenues leaped by 64.4%. 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 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.48, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for PURE CYCLE CORP is currently very high, coming in at 79.82%. 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 -56.25% is in-line with the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Water Utilities industry and the overall market, PURE CYCLE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
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. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged. The Materials & Construction industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Materials & Construction industry included Comstock ( CHCI), up 1.7%, Goldfield ( GV), up 2.4%, Abengoa SA ADR repr Class B ( ABGB), up 1.9%, Pure Cycle ( PCYO), up 1.8% and Sterling Construction ( STRL), up 1.9%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Pure Cycle ( PCYO) is one of the companies that pushed the Materials & Construction industry higher today. Pure Cycle was up $0.12 (1.8%) to $6.64 on light volume. Throughout the day, 19,509 shares of Pure Cycle exchanged hands as compared to its average daily volume of 91,300 shares. The stock ranged in a price between $6.52-$6.78 after having opened the day at $6.52 as compared to the previous trading day's close of $6.52. Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area. Pure Cycle has a market cap of $156.7 million and is part of the industrial goods sector. Shares are up 3.0% 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 solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from TheStreet Ratings analysis on PCYO go as follows: