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PCYO vs SRE

PCYO
Pure Cycle Corporation
NEUTRAL
Price
$11.08
Market Cap
$267.1M
Sector
Utilities
AI Confidence
80%
SRE
Sempra
BEARISH
Price
$97.78
Market Cap
$63.88B
Sector
Utilities
AI Confidence
75%

Valuation

P/E Ratio
PCYO
19.44
SRE
35.55
Forward P/E
PCYO
123.11
SRE
17.68
P/B Ratio
PCYO
1.81
SRE
2.02
P/S Ratio
PCYO
8.72
SRE
4.66
EV/EBITDA
PCYO
19.03
SRE
19.79

Profitability

Gross Margin
PCYO
64.85%
SRE
41.18%
Operating Margin
PCYO
5.09%
SRE
27.74%
Profit Margin
PCYO
45.8%
SRE
13.4%
ROE
PCYO
9.91%
SRE
5.19%
ROA
PCYO
4.71%
SRE
1.77%

Growth

Revenue Growth
PCYO
29.4%
SRE
-0.2%
Earnings Growth
PCYO
52.8%
SRE
-48.2%

Financial Health

Debt/Equity
PCYO
0.05
SRE
0.83
Current Ratio
PCYO
1.39
SRE
1.59
Quick Ratio
PCYO
0.76
SRE
0.09

Dividends

Dividend Yield
PCYO
--
SRE
2.71%
Payout Ratio
PCYO
0.0%
SRE
93.82%

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
SRE BEARISH

SRE shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Concerns include weak profitability or high valuation.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($54.73)
Declining revenue (-0.2%)

Compare Another Pair

PCYO vs SRE: Head-to-Head Comparison

This page compares Pure Cycle Corporation (PCYO) and Sempra (SRE) 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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