| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 5/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
WHD Overview
Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States.
Rewards
Risk Analysis
No risks detected for WHD from our risk checks.
Cactus Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$35.61 |
| 52 Week High | US$16.11 |
| 52 Week Low | US$44.20 |
| Beta | 2.39 |
| 1 Month Change | 5.95% |
| 3 Month Change | -7.43% |
| 1 Year Change | 73.96% |
| 3 Year Change | -1.85% |
| 5 Year Change | n/a |
| Change since IPO | 75.85% |
Recent News & Updates
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
| WHD | US Energy Services | US Market | |
|---|---|---|---|
| 7D | 1.1% | 5.7% | -0.6% |
| 1Y | 74.0% | 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
| WHD volatility | |
|---|---|
| WHD Beta | 2.39 |
| Industry Beta | 2.41 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | 660 | Scott Bender | https://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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/16 22:57 |
| End of Day Share Price | 2021/09/16 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.