WHD

CactusNYSE:WHD Stock Report

Market Cap

US$2.7b

7D

1.1%

1Y

74.0%

Updated

16 Sep, 2021

Data

Company Financials +
WHD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends2/6

WHD Overview

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States.

Rewards

Earnings are forecast to grow 46.58% per year

Risk Analysis

No risks detected for WHD from our risk checks.

Cactus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cactus
Historical stock prices
Current Share PriceUS$35.61
52 Week HighUS$16.11
52 Week LowUS$44.20
Beta2.39
1 Month Change5.95%
3 Month Change-7.43%
1 Year Change73.96%
3 Year Change-1.85%
5 Year Changen/a
Change since IPO75.85%

Recent News & Updates

Jul 14
Cactus (NYSE:WHD) May Have Issues Allocating Its Capital

Cactus (NYSE:WHD) May Have Issues Allocating Its Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Shareholder Returns

WHDUS Energy ServicesUS Market
7D1.1%5.7%-0.6%
1Y74.0%52.4%33.6%

Return vs Industry: WHD exceeded the US Energy Services industry which returned 55.1% over the past year.

Return vs Market: WHD exceeded the US Market which returned 33.7% over the past year.

Price Volatility

Is WHD's price volatile compared to industry and market?
WHD volatility
WHD Beta2.39
Industry Beta2.41
Market Beta1

Stable Share Price: WHD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WHD's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011660Scott Benderhttps://www.cactuswhd.com

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States. The company’s principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks, zipper manifolds, and production trees. It also provides mission-critical field services, such as 24-hour service crews to assist with the installation, maintenance, repair, and safe handling of the wellhead and pressure control equipment; and repair and refurbishment services.

Valuation

Is Cactus undervalued compared to its fair value and its price relative to the market?

85.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WHD ($35.61) is trading above our estimate of fair value ($4.04)

Significantly Below Fair Value: WHD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WHD is poor value based on its PE Ratio (85.9x) compared to the US Energy Services industry average (30x).

PE vs Market: WHD is poor value based on its PE Ratio (85.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WHD is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: WHD is overvalued based on its PB Ratio (6.1x) compared to the US Energy Services industry average (1x).


Future Growth

How is Cactus forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHD's forecast earnings growth (46.6% per year) is above the savings rate (2%).

Earnings vs Market: WHD's earnings (46.6% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WHD's revenue (23% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: WHD's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHD's Return on Equity is forecast to be low in 3 years time (17.8%).


Past Performance

How has Cactus performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHD has high quality earnings.

Growing Profit Margin: WHD's current net profit margins (9.8%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: WHD's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: WHD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WHD had negative earnings growth (-49.7%) over the past year, making it difficult to compare to the Energy Services industry average (-49.7%).


Return on Equity

High ROE: WHD's Return on Equity (8.2%) is considered low.


Financial Health

How is Cactus's financial position?


Financial Position Analysis

Short Term Liabilities: WHD's short term assets ($473.8M) exceed its short term liabilities ($73.6M).

Long Term Liabilities: WHD's short term assets ($473.8M) exceed its long term liabilities ($300.0M).


Debt to Equity History and Analysis

Debt Level: WHD is debt free.

Reducing Debt: WHD currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: WHD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WHD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Cactus's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WHD's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: WHD's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WHD has been paying a dividend for less than 10 years.

Growing Dividend: WHD's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.2%), WHD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WHD's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Scott Bender (67 yo)

10.67yrs

Tenure

US$1,655,662

Compensation

Mr. Scott J. Bender has been President, Chief Executive Officer and Director of Cactus, Inc. since 2011. He is the President and Chief Executive Officer of Cactus Wellhead, LLC. Mr. Bender founded Cactus L...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD1.66M) is below average for companies of similar size in the US market ($USD5.25M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WHD's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: WHD's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cactus, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cactus, Inc.
  • Ticker: WHD
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$2.718b
  • Market Cap: US$2.067b
  • Shares outstanding: 75.70m
  • Website: https://www.cactuswhd.com

Number of Employees


Location

  • Cactus, Inc.
  • 920 Memorial City Way
  • Suite 300
  • Houston
  • Texas
  • 77024
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:57
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.