In the world of growth stocks, NYSE:WHD shines as a value proposition.

Last update: Feb 29, 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.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:WHD, the assigned 9 reflects its growth potential:

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.
Looking at the last year, WHD shows a very strong growth in Revenue. The Revenue has grown by 60.17%.
Measured over the past years, WHD shows a quite strong growth in Revenue. The Revenue has been growing by 15.07% on average per year.
WHD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.36% yearly.
WHD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.50% 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.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:WHD scores a 6 out of 10:

Based on the Price/Earnings ratio, WHD is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WHD to the average of the S&P500 Index (26.04), we can say WHD is valued slightly cheaper.
WHD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.61, which is the current average of the S&P500 Index.
Based on the Price/Free Cash Flow ratio, WHD is valued a bit cheaper than 64.62% 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.
WHD has a very decent profitability rating, which may justify a higher PE ratio.
WHD's earnings are expected to grow with 26.36% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:WHD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WHD has received a 8 out of 10:

An Altman-Z score of 5.20 indicates that WHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of WHD (5.20) 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.
Looking at the Debt to Equity ratio, with a value of 0.01, WHD belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
A Current Ratio of 2.78 indicates that WHD has no problem at all paying its short term obligations.
WHD has a better Current ratio (2.78) than 76.92% of its industry peers.
WHD's Quick ratio of 1.63 is fine compared to the rest of the industry. WHD outperforms 61.54% of its industry peers.

Exploring NYSE:WHD's Profitability

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

WHD has a better Return On Assets (10.33%) than 89.23% of its industry peers.
WHD has a better Return On Equity (18.43%) than 78.46% 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 3 year average ROIC (10.11%) for WHD is below the current ROIC(15.64%), indicating increased profibility in the last year.
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.
WHD's Operating Margin of 23.17% is amongst the best of the industry. WHD outperforms 89.23% of its industry peers.
WHD has a better Gross Margin (36.39%) than 67.69% of its industry peers.

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

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

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.