WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 3294% more annual revenue ($1.00B vs $29.47M). PCYO leads profitability with a 46.6% profit margin vs 12.8%. PCYO trades at a lower P/E of 18.1x. PCYO earns a higher WallStSmart Score of 61/100 (C+).

CWT

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 7.3Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

PCYO

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 8.3Quality: 8.0
Piotroski: 3/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTSignificantly Overvalued (-202.0%)

Margin of Safety

-202.0%

Fair Value

$14.62

Current Price

$43.94

$29.32 premium

UndervaluedFair: $14.62Overvalued
PCYOUndervalued (+49.0%)

Margin of Safety

+49.0%

Fair Value

$20.75

Current Price

$9.88

$10.87 discount

UndervaluedFair: $20.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

PCYO6 strengths · Avg: 9.7/10
Profit MarginProfitability
46.6%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
48.0%10/10

Strong operational efficiency at 48.0%

Revenue GrowthGrowth
58.8%10/10

Revenue surging 58.8% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-100.0%2/10

Revenue declined 100.0%

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$249.10M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.13M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.6% and operating margin at 48.0%. Revenue growth of 58.8% 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, Free Cash Flow.

Key Dynamics to Monitor

CWT profiles as a declining stock while PCYO is a growth play — different risk/reward profiles.

PCYO carries more volatility with a beta of 1.32 — expect wider price swings.

PCYO is growing revenue faster at 58.8% — sustainability is the question.

PCYO generates stronger free cash flow (-1M), providing more financial flexibility.

Bottom Line

PCYO scores higher overall (61/100 vs 47/100), backed by strong 46.6% margins and 58.8% revenue growth. Both earn "Buy" and "Hold" 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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