From Financial Modeling Prep: 2025-02-17 07:00:05

Pure Cycle Corporation (NASDAQ:PCYO) provides water and wastewater services in Denver, Colorado, focusing on sustainable solutions. With a ROIC of 6.42% and a WACC of 9.05%, its ROIC/WACC ratio is 0.71, the highest among peers like Cadiz Inc. and Global Water Resources, Inc., all struggling to exceed their cost of capital.

Cadiz Inc. (CDZI) has a negative ROIC of -21.18% and a WACC of 8.70%, resulting in a ROIC/WACC ratio of -2.43, indicating significant underperformance. Global Water Resources, Inc. (GWRS) fares slightly better with a ROIC of 1.84% and a WACC of 7.31%, yielding a ratio of 0.25, still below optimal levels.

Artesian Resources Corporation (ARTNA) and Parke Bancorp, Inc. (PKBK) have ROIC/WACC ratios of 0.66 and 0.17, respectively. Artesian’s ROIC of 3.16% is closer to its WACC of 4.79%, while Parke Bancorp’s ROIC of 2.26% falls far below its WACC of 13.42%. Peoples Bancorp of North Carolina, Inc. (PEBK) also struggles with a ROIC of 1.97% and a WACC of 13.72%, resulting in a ratio of 0.14.

Pure Cycle may have the highest ROIC/WACC ratio among peers, but all companies in the analysis are failing to generate returns exceeding their cost of capital. This lack of capital efficiency could be a concern for investors looking for stronger performance.



Read more at Financial Modeling Prep:: Pure Cycle Corporation’s Financial Performance in …