NYSE:WHD, a growth stock which is not overvalued.

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.

Assessing Growth for 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:

• WHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.74%, which is quite impressive.
• 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.
• Looking at the last year, WHD shows a very strong growth in Revenue. 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.
• The Earnings Per Share is expected to grow by 27.96% on average over the next years. This is a very strong growth
• Based on estimates for the next years, WHD will show a very strong growth in Revenue. The Revenue will grow by 23.23% on average per year.
• 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.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:WHD boasts a 6 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of WHD indicates a somewhat cheap valuation: WHD is cheaper than 69.23% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of WHD to the average of the S&P500 Index (25.46), we can say WHD is valued slightly cheaper.
• With a Price/Forward Earnings ratio of 11.29, the valuation of WHD can be described as very reasonable.
• When comparing the Price/Forward Earnings ratio of WHD to the average of the S&P500 Index (20.48), we can say WHD is valued slightly cheaper.
• 70.77% of the companies in the same industry are more expensive than WHD, based on the Price/Free Cash Flow ratio.
• The 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 27.96% in the coming years.

Deciphering NYSE:WHD's Health Rating

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:

• WHD has an Altman-Z score of 4.64. This indicates that WHD is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of WHD (4.64) 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 has a better Debt to FCF ratio (0.07) than 92.31% of its industry peers.
• A Debt/Equity ratio of 0.01 indicates that WHD is not too dependend on debt financing.
• 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.
• 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 has a better Current ratio (2.78) than 76.92% of its industry peers.
• With a decent Quick ratio value of 1.63, WHD is doing good in the industry, outperforming 61.54% of the companies in the same industry.

Profitability Examination for NYSE:WHD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:WHD has achieved a 8:

• With an excellent Return On Assets value of 10.33%, WHD belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
• The Return On Equity of WHD (18.43%) is better than 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.
• WHD has a better Profit Margin (14.98%) 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.