For those who appreciate growth without the sticker shock, NYSE:WHD is worth considering.

Last update: Feb 8, 2024

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 Analysis for NYSE:WHD

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:WHD was assigned a score of 9 for growth:

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.
The Earnings Per Share has been growing by 10.10% on average over the past years. This is quite good.
WHD shows a strong growth in Revenue. In the last year, 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.
Based on estimates for the next years, WHD will show a very strong growth in Earnings Per Share. The EPS will grow by 26.36% on average per year.
WHD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.00% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Exploring NYSE:WHD's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:WHD, the assigned 6 reflects its valuation:

Based on the Price/Earnings ratio, WHD is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
WHD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.88, which is the current average of the S&P500 Index.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, WHD is valued a bit cheaper.
Based on the Price/Free Cash Flow ratio, WHD is valued a bit cheaper than 69.23% of the companies in the same industry.
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 26.36% in the coming years.

Assessing Health Metrics 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:

WHD has an Altman-Z score of 4.98. This indicates that WHD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WHD (4.98) is better than 90.77% of its industry peers.
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 has a Debt to FCF ratio of 0.07. This is amongst the best in 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.
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.
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.

A Closer Look at Profitability for NYSE:WHD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:WHD, the assigned 8 is a significant indicator of 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.
The Return On Invested Capital of WHD (15.64%) is better than 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.
Looking at the Profit Margin, with a value of 14.98%, WHD belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
WHD has a better Operating Margin (23.17%) than 90.77% of its industry peers.
Looking at the Gross Margin, with a value of 36.39%, WHD is in the better half of the industry, outperforming 67.69% of the companies in the same industry.

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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.