CACTUS INC - A (WHD) Stock Fundamental Analysis
NYSE:WHD - New York Stock Exchange, Inc. - US1272031071 - Common Stock
WHD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 58 industry peers in the Energy Equipment & Services industry. WHD gets an excellent profitability rating and is at the same time showing great financial health properties. WHD is quite expensive at the moment. It does show a decent growth rate. This makes WHD very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WHD was profitable.
In the past year WHD had a positive cash flow from operations.
WHD had positive earnings in each of the past 5 years.
Each year in the past 5 years WHD had a positive operating cash flow.
1.2 Ratios
WHD has a better Return On Assets (11.16%) than 89.66% of its industry peers.
Looking at the Return On Equity, with a value of 18.71%, WHD belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
WHD has a Return On Invested Capital of 16.39%. This is amongst the best in the industry. WHD outperforms 94.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WHD is above the industry average of 8.32%.
The 3 year average ROIC (12.45%) for WHD is below the current ROIC(16.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 18.71% | ||
| ROIC | 16.39% |
ROA(3y)8.67%
ROA(5y)8.1%
ROE(3y)16.47%
ROE(5y)17.06%
ROIC(3y)12.45%
ROIC(5y)13.05%
1.3 Margins
Looking at the Profit Margin, with a value of 16.57%, WHD belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
WHD's Profit Margin has improved in the last couple of years.
WHD's Operating Margin of 26.29% is amongst the best of the industry. WHD outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of WHD has declined.
The Gross Margin of WHD (39.15%) is better than 77.59% of its industry peers.
WHD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.29% | ||
| PM (TTM) | 16.57% | ||
| GM | 39.15% |
OM growth 3Y5.33%
OM growth 5Y-5.9%
PM growth 3Y16.05%
PM growth 5Y10.17%
GM growth 3Y4.98%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WHD is still creating some value.
WHD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WHD has more shares outstanding
WHD has a better debt/assets ratio than last year.
2.2 Solvency
WHD has an Altman-Z score of 6.56. This indicates that WHD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WHD (6.56) is better than 96.55% of its industry peers.
The Debt to FCF ratio of WHD is 0.06, which is an excellent value as it means it would take WHD, only 0.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.06, WHD belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that WHD is not too dependend on debt financing.
WHD's Debt to Equity ratio of 0.01 is amongst the best of the industry. WHD outperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 6.56 |
ROIC/WACC1.76
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.82 indicates that WHD has no problem at all paying its short term obligations.
WHD has a Current ratio of 3.82. This is amongst the best in the industry. WHD outperforms 89.66% of its industry peers.
WHD has a Quick Ratio of 2.67. This indicates that WHD is financially healthy and has no problem in meeting its short term obligations.
WHD's Quick ratio of 2.67 is amongst the best of the industry. WHD outperforms 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.88% over the past year.
WHD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.79% yearly.
WHD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.15%.
WHD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.05% yearly.
EPS 1Y (TTM)10.88%
EPS 3Y62.51%
EPS 5Y11.79%
EPS Q2Q%-1.25%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y46.54%
Revenue growth 5Y15.05%
Sales Q2Q%1.84%
3.2 Future
Based on estimates for the next years, WHD will show a small growth in Earnings Per Share. The EPS will grow by 3.98% on average per year.
WHD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y-0.15%
EPS Next 2Y2.55%
EPS Next 3Y3.98%
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y3.52%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.99, WHD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WHD indicates a somewhat cheap valuation: WHD is cheaper than 63.79% of the companies listed in the same industry.
WHD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 19.44, which indicates a rather expensive current valuation of WHD.
The rest of the industry has a similar Price/Forward Earnings ratio as WHD.
WHD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WHD is valued expensively inside the industry as 82.76% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as WHD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.56 | ||
| EV/EBITDA | 13.39 |
4.3 Compensation for Growth
The excellent profitability rating of WHD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y2.55%
EPS Next 3Y3.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, WHD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.28, WHD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, WHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of WHD grows each year by 69.72%, which is quite nice.
WHD has been paying a dividend for over 5 years, so it has already some track record.
As WHD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)69.72%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
17.40% of the earnings are spent on dividend by WHD. This is a low number and sustainable payout ratio.
WHD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.4%
EPS Next 2Y2.55%
EPS Next 3Y3.98%
CACTUS INC - A
NYSE:WHD (1/22/2025, 11:31:36 AM)
63.17
-0.58 (-0.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners123.56%
Inst Owner Change0.31%
Ins Owners0.75%
Ins Owner Change-14.13%
Market Cap5.03B
Analysts72.31
Price Target63.62 (0.71%)
Short Float %4.68%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.48
Dividend Growth(5Y)69.72%
DP17.4%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.81%
Min EPS beat(2)3.69%
Max EPS beat(2)11.93%
EPS beat(4)4
Avg EPS beat(4)9.72%
Min EPS beat(4)3.69%
Max EPS beat(4)16.65%
EPS beat(8)7
Avg EPS beat(8)8.46%
EPS beat(12)11
Avg EPS beat(12)10.27%
EPS beat(16)13
Avg EPS beat(16)9.43%
Revenue beat(2)2
Avg Revenue beat(2)2.28%
Min Revenue beat(2)0.76%
Max Revenue beat(2)3.8%
Revenue beat(4)4
Avg Revenue beat(4)1.4%
Min Revenue beat(4)0.28%
Max Revenue beat(4)3.8%
Revenue beat(8)6
Avg Revenue beat(8)1.32%
Revenue beat(12)10
Avg Revenue beat(12)2.05%
Revenue beat(16)12
Avg Revenue beat(16)1.97%
PT rev (1m)0%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.84%
EPS NY rev (1m)0%
EPS NY rev (3m)5.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 19.44 | ||
| P/S | 4.44 | ||
| P/FCF | 16.56 | ||
| P/OCF | 14.73 | ||
| P/B | 5.01 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 13.39 |
EPS(TTM)3.16
EY5%
EPS(NY)3.25
Fwd EY5.14%
FCF(TTM)3.81
FCFY6.04%
OCF(TTM)4.29
OCFY6.79%
SpS14.23
BVpS12.6
TBVpS7.94
PEG (NY)N/A
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 18.71% | ||
| ROCE | 19.98% | ||
| ROIC | 16.39% | ||
| ROICexc | 20.58% | ||
| ROICexgc | 29.93% | ||
| OM | 26.29% | ||
| PM (TTM) | 16.57% | ||
| GM | 39.15% | ||
| FCFM | 26.8% |
ROA(3y)8.67%
ROA(5y)8.1%
ROE(3y)16.47%
ROE(5y)17.06%
ROIC(3y)12.45%
ROIC(5y)13.05%
ROICexc(3y)16.73%
ROICexc(5y)18.06%
ROICexgc(3y)19.62%
ROICexgc(5y)19.91%
ROCE(3y)15.18%
ROCE(5y)15.91%
ROICexcg growth 3Y27.71%
ROICexcg growth 5Y-5.01%
ROICexc growth 3Y13.15%
ROICexc growth 5Y-11.64%
OM growth 3Y5.33%
OM growth 5Y-5.9%
PM growth 3Y16.05%
PM growth 5Y10.17%
GM growth 3Y4.98%
GM growth 5Y-1.58%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 62.73% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 142.65 | ||
| Cash Conversion | 95.39% | ||
| Profit Quality | 161.76% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 6.56 |
F-Score7
WACC9.31%
ROIC/WACC1.76
Cap/Depr(3y)62.96%
Cap/Depr(5y)80.57%
Cap/Sales(3y)3.76%
Cap/Sales(5y)5.56%
Profit Quality(3y)119.02%
Profit Quality(5y)175.56%
High Growth Momentum
Growth
EPS 1Y (TTM)10.88%
EPS 3Y62.51%
EPS 5Y11.79%
EPS Q2Q%-1.25%
EPS Next Y-0.15%
EPS Next 2Y2.55%
EPS Next 3Y3.98%
EPS Next 5YN/A
Revenue 1Y (TTM)12.15%
Revenue growth 3Y46.54%
Revenue growth 5Y15.05%
Sales Q2Q%1.84%
Revenue Next Year3.81%
Revenue Next 2Y3.52%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
EBIT growth 1Y27.23%
EBIT growth 3Y54.34%
EBIT growth 5Y8.27%
EBIT Next Year28.27%
EBIT Next 3Y12.92%
EBIT Next 5YN/A
FCF growth 1Y362.77%
FCF growth 3Y35.58%
FCF growth 5Y25%
OCF growth 1Y277.85%
OCF growth 3Y33.38%
OCF growth 5Y15.27%