Despite its growth, NYSE:WHD remains within the realm of affordability.

Last update: Dec 28, 2023

Take a closer look at CACTUS INC - A (NYSE:WHD), an affordable growth stock uncovered by our stock screener. NYSE:WHD boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Insights: NYSE:WHD

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:WHD scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 88.74% over the past year.
Measured over the past years, WHD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.10% on average per year.
WHD shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.17%.
The Revenue has been growing by 15.07% on average over the past years. This is quite good.
Based on estimates for the next years, WHD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.96% on average per year.
WHD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.23% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

How We Gauge Valuation for NYSE:WHD

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:WHD was assigned a score of 6 for valuation:

WHD's Price/Earnings ratio is a bit cheaper when compared to the industry. WHD is cheaper than 66.15% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, WHD is valued a bit cheaper.
WHD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.06.
Based on the Price/Free Cash Flow ratio, WHD is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WHD has an outstanding profitability rating, which may justify a higher PE ratio.
WHD's earnings are expected to grow with 27.96% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NYSE:WHD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:WHD has earned a 7 out of 10:

An Altman-Z score of 5.26 indicates that WHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of WHD (5.26) is better than 90.77% of its industry peers.
WHD has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of 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.
WHD has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
WHD has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. WHD outperforms 86.15% of its industry peers.
A Current Ratio of 2.78 indicates that WHD has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.78, WHD is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.63, WHD is in the better half of the industry, outperforming 61.54% of the companies in the same industry.

Profitability Examination for NYSE:WHD

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 Return On Assets of 10.33%. This is amongst the best in the industry. WHD outperforms 89.23% of its industry peers.
WHD's Return On Equity of 18.43% is amongst the best of the industry. WHD outperforms 81.54% of its industry peers.
WHD's Return On Invested Capital of 15.64% is amongst the best of 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.
With an excellent Profit Margin value of 14.98%, WHD belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
The Operating Margin of WHD (23.17%) is better than 90.77% of its industry peers.
WHD's Gross Margin of 36.39% is fine compared to the rest of the industry. WHD outperforms 67.69% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of WHD

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.