Pure Cycle Corporation (PCYO) exhibits 61.4% gross margins and 4.4% return on invested capital within Utilities (Water Supply), balanced against a 32.0x enterprise multiple and 4.8% implied options volatility.
Sustained 61.4% gross profitability converts into 29.4% operating margin and 4.4% ROIC, outpacing sector cost of capital.
ROIC: 4.4% // GM: 61.4%YoY revenue trajectory of -9.3% paired with 5.16% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -9.3% // FCF YLD: 5.16%Altman Z-Score of 7.62 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 7.62 // F-SCORE: 8/9Trading at 19.5x trailing P/E (18.1x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 19.5x // EV/EBITDA: 32.0xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $10.59 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Water Supply require continuous execution to defend 50.3% net margins.
NET MARGIN: 50.3% // D/E: 0.05x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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