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PCYO vs SO

PCYO
Pure Cycle Corporation
NEUTRAL
Price
$11.08
Market Cap
$267.1M
Sector
Utilities
AI Confidence
80%
SO
The Southern Company
NEUTRAL
Price
$97.02
Market Cap
$108.6B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
PCYO
19.44
SO
24.75
Forward P/E
PCYO
123.11
SO
19.73
P/B Ratio
PCYO
1.81
SO
3.02
P/S Ratio
PCYO
8.72
SO
3.67
EV/EBITDA
PCYO
19.03
SO
13.16

Profitability

Gross Margin
PCYO
64.85%
SO
48.47%
Operating Margin
PCYO
5.09%
SO
12.73%
Profit Margin
PCYO
45.8%
SO
14.69%
ROE
PCYO
9.91%
SO
11.04%
ROA
PCYO
4.71%
SO
3.28%

Growth

Revenue Growth
PCYO
29.4%
SO
10.1%
Earnings Growth
PCYO
52.8%
SO
-22.1%

Financial Health

Debt/Equity
PCYO
0.05
SO
1.91
Current Ratio
PCYO
1.39
SO
0.65
Quick Ratio
PCYO
0.76
SO
0.34

Dividends

Dividend Yield
PCYO
--
SO
3.07%
Payout Ratio
PCYO
0.0%
SO
75.0%

AI Verdict

PCYO NEUTRAL

PCYO presents a contradictory financial profile characterized by a weak Piotroski F-Score (3/9) and a poor earnings track record, offset by an exceptionally clean balance sheet (Debt/Equity 0.05). While current growth metrics are strong, the massive spike in Forward P/E (123.11) compared to the trailing P/E (19.44) suggests a significant expected decline in future earnings. The stark discrepancy between the operating margin (5.09%) and profit margin (45.80%) indicates that recent profitability is likely driven by non-operating gains rather than core business efficiency. Consequently, the stock is valued near its Graham Number ($8.86) and Intrinsic Value ($16.81) midpoint, but lacks the fundamental quality to be bullish.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.05
Strong year-over-year revenue growth of 29.40%
High reported profit margins (45.80%)
Risks
Weak Piotroski F-Score (3/9) indicating deteriorating fundamental health
Alarming Forward P/E of 123.11 suggesting a sharp earnings contraction
Poor earnings quality evidenced by the gap between operating and net margins
SO NEUTRAL

SO shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Company has established market presence
Risks
Premium vs Graham Number ($53.27)

Compare Another Pair

PCYO vs SO: Head-to-Head Comparison

This page compares Pure Cycle Corporation (PCYO) and The Southern Company (SO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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