WallStSmart

California Water Service Group (CWT)vsPure Cycle Corporation (PCYO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 3026% more annual revenue ($1.05B vs $33.73M). PCYO leads profitability with a 43.7% profit margin vs 12.6%. PCYO trades at a lower P/E of 18.3x. CWT earns a higher WallStSmart Score of 67/100 (B-).

CWT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

PCYO

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 5.3Quality: 7.5
Piotroski: 3/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.4%)

Margin of Safety

+21.4%

Fair Value

$56.20

Current Price

$48.22

$7.98 discount

UndervaluedFair: $56.20Overvalued

Intrinsic value data unavailable for PCYO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT4 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
31.4%8/10

Earnings expanding 31.4% YoY

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
43.7%10/10

Keeps 44 of every $100 in revenue as profit

Revenue GrowthGrowth
60.0%10/10

Revenue surging 60.0% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-83.38M2/10

Negative free cash flow — burning cash

PCYO2 concerns · Avg: 3.0/10
Market CapQuality
$269.65M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum.

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, Revenue Growth, Debt/Equity. Profitability is solid with margins at 43.7% and operating margin at 25.7%. Revenue growth of 60.0% demonstrates continued momentum.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

PCYO carries more volatility with a beta of 1.23 — expect wider price swings.

PCYO is growing revenue faster at 60.0% — sustainability is the question.

PCYO generates stronger free cash flow (3M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CWT scores higher overall (67/100 vs 65/100) and 16.5% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

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