NYSE:WHD is showing decent growth, but is still valued reasonably.

CACTUS INC - A (NYSE:WHD) was identified as an affordable growth stock by our stock screener. NYSE:WHD is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Assessment of NYSE:WHD

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:WHD has achieved a 9 out of 10:

• The Earnings Per Share has grown by an impressive 88.74% over the past year.
• The Earnings Per Share has been growing by 10.10% on average over the past years. This is quite good.
• Looking at the last year, WHD shows a very strong growth in Revenue. The Revenue has grown by 60.17%.
• WHD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.07% yearly.
• WHD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.26% yearly.
• The Revenue is expected to grow by 23.76% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Insights: NYSE:WHD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:WHD has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, WHD is valued a bit cheaper than 66.15% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 24.78, WHD is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio of 10.90, the valuation of WHD can be described as reasonable.
• When comparing the Price/Forward Earnings ratio of WHD to the average of the S&P500 Index (19.90), we can say WHD is valued slightly cheaper.
• WHD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WHD is cheaper than 70.77% of the companies in the same industry.
• WHD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of WHD may justify a higher PE ratio.
• A more expensive valuation may be justified as WHD's earnings are expected to grow with 37.26% in the coming years.

Health Analysis for NYSE:WHD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:WHD scores a 7 out of 10:

• An Altman-Z score of 4.81 indicates that WHD is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.81, WHD belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
• The Debt to FCF ratio of WHD is 0.07, which is an excellent value as it means it would take WHD, only 0.07 years of fcf income to pay off all of its debts.
• WHD's Debt to FCF ratio of 0.07 is amongst the best of the industry. WHD outperforms 92.31% of its industry peers.
• A Debt/Equity ratio of 0.01 indicates that WHD is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.01, WHD belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
• WHD has a Current Ratio of 2.78. This indicates that WHD is financially healthy and has no problem in meeting its short term obligations.
• WHD's Current ratio of 2.78 is fine compared to the rest of the industry. WHD outperforms 80.00% of its industry peers.
• The Quick ratio of WHD (1.63) is better than 61.54% of its industry peers.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:WHD was assigned a score of 8 for profitability:

• WHD has a better Return On Assets (10.33%) than 89.23% of its industry peers.
• WHD has a Return On Equity of 18.43%. This is amongst the best in the industry. WHD outperforms 81.54% of its industry peers.
• WHD has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. WHD outperforms 87.69% of its industry peers.
• The last Return On Invested Capital (15.64%) for WHD is above the 3 year average (10.11%), which is a sign of increasing profitability.
• The Profit Margin of WHD (14.98%) is better than 89.23% of its industry peers.
• WHD's Operating Margin of 23.17% is amongst the best of the industry. WHD outperforms 90.77% of its industry peers.
• WHD has a Gross Margin of 36.39%. This is in the better half of the industry: WHD outperforms 67.69% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of WHD contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.