Pure Cycle Corporation (NASDAQ:PCYO) has a Return on Invested Capital (ROIC) of 6.82%, which is lower than its Weighted Average Cost of Capital (WACC) of 8.71%, indicating inefficiencies in capital utilization.
Cadiz Inc. shows a significantly negative ROIC, highlighting potential financial distress, whereas Artesian Resources Corporation demonstrates effective capital utilization with its ROIC exceeding its WACC.
Artesian Resources Corporation has a ROIC of 5.80%, which exceeds its WACC of 4.79%, indicating effective capital utilization.

Pure Cycle Corporation (NASDAQ:PCYO) is a company involved in the development and management of water and land resources. It operates primarily in the water utility sector, providing water and wastewater services. In the competitive landscape, Pure Cycle faces peers like Cadiz Inc., Artesian Resources Corporation, Global Water Resources, Inc., Parke Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc.
In evaluating Pure Cycle’s financial performance, the Return on Invested Capital (ROIC) is a key metric. Pure Cycle’s ROIC is 6.82%, which is lower than its Weighted Average Cost of Capital (WACC) of 8.71%. This indicates that the company is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in capital utilization.
Comparatively, Cadiz Inc. shows a negative ROIC of -28.78% against a WACC of 8.56%, highlighting significant capital inefficiency and potential financial distress. In contrast, Artesian Resources Corporation has a ROIC of 5.80%, which exceeds its WACC of 4.79%, indicating effective capital utilization and value creation for shareholders. Global Water Resources, Inc. has ROIC of 4.14% lower than its WACC of 7.36%. This suggests that its, like Pure Cycle, is not effectively generating returns above their cost of capital.