NYSE:WHD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Cactus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WHD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

WHD

-1.1%

US Energy Services

-2.8%

US Market


1 Year Return

-69.6%

WHD

-72.2%

US Energy Services

-15.9%

US Market

Return vs Industry: WHD exceeded the US Energy Services industry which returned -72.2% over the past year.

Return vs Market: WHD underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

WHDIndustryMarket
7 Day2.3%-1.1%-2.8%
30 Day-49.4%-46.0%-18.8%
90 Day-67.4%-66.0%-24.0%
1 Year-69.4%-69.6%-71.2%-72.2%-14.2%-15.9%
3 Yearn/a-79.8%-82.5%9.9%2.8%
5 Yearn/a-81.5%-84.8%27.2%13.3%

Price Volatility Vs. Market

How volatile is Cactus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHD ($11.46) is trading below our estimate of fair value ($26)

Significantly Below Fair Value: WHD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WHD is good value based on its PE Ratio (6x) compared to the Energy Services industry average (10.4x).

PE vs Market: WHD is good value based on its PE Ratio (6x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: WHD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WHD is overvalued based on its PB Ratio (1.7x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Cactus forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHD's earnings are forecast to decline over the next 3 years (-27.2% per year).

Earnings vs Market: WHD's earnings are forecast to decline over the next 3 years (-27.2% per year).

High Growth Earnings: WHD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WHD's revenue is expected to decline over the next 3 years (-17.9% per year).

High Growth Revenue: WHD's revenue is forecast to decline over the next 3 years (-17.9% 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 (9.7%).


Next Steps

Past Performance

How has Cactus performed over the past 5 years?

50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHD has high quality earnings.

Growing Profit Margin: WHD's current net profit margins (13.6%) are higher than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: WHD's earnings have grown significantly by 50.8% per year over the past 5 years.

Accelerating Growth: WHD's earnings growth over the past year (65.6%) exceeds its 5-year average (50.8% per year).

Earnings vs Industry: WHD earnings growth over the past year (65.6%) exceeded the Energy Services industry -34.4%.


Return on Equity

High ROE: WHD's Return on Equity (30.3%) is considered high.


Next Steps

Financial Health

How is Cactus's financial position?


Financial Position Analysis

Short Term Liabilities: WHD's short term assets ($414.9M) exceed its short term liabilities ($91.1M).

Long Term Liabilities: WHD's short term assets ($414.9M) exceed its long term liabilities ($227.4M).


Debt to Equity History and Analysis

Debt Level: WHD is debt free.

Reducing Debt: WHD had no debt 5 years ago.

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

Inventory Level: WHD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WHD's debt is covered by short term assets.


Next Steps

Dividend

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

3.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WHD's dividend (3.14%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: WHD's dividend (3.14%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether WHD's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if WHD's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.7%), WHD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WHD's dividends in 3 years are forecast to be well covered by earnings (38.4% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Scott Bender (65yo)

9.25s

Tenure

US$2,163,931

Compensation

Mr. Scott 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 LLC. ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD2.16M) is below average for companies of similar size in the US market ($USD3.31M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Bender
President9.25yrsUS$2.16m0.079% $679.0k
Stephen Tadlock
CFO, VP & Treasurer1.08yrsUS$2.03m0.12% $1.1m
Joel Bender
Senior VP9.25yrsUS$2.16m0.077% $662.7k
David Isaac
General Counselno dataUS$926.05k0.011% $97.2k
Donna Anderson
Chief Accounting Officer & Corporate Controller0.33yrno datano data
John Fitzgerald
Director of Corporate Development & Investor Relationsno datano datano data

5.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: WHD's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Bender
President9.25yrsUS$2.16m0.079% $679.0k
Joel Bender
Senior VP9.25yrsUS$2.16m0.077% $662.7k
Michael McGovern
Independent Director9.25yrsUS$199.97k0.017% $144.7k
Gary Rosenthal
Independent Director2.25yrsUS$194.97k0.074% $635.1k
Bruce Rothstein
Chairman of the Board9.25yrsUS$199.97kno data
John O'Donnell
Independent Director5.25yrsUS$199.97k0.017% $144.7k
Alan Semple
Independent Non-Executive Director3yrsUS$204.97k0.090% $777.7k
Melissa Law
Independent Director0.25yrno datano data

7.3yrs

Average Tenure

66yo

Average Age

Experienced Board: WHD's board of directors are considered experienced (7.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.1%.


Top Shareholders

Company Information

Cactus, Inc.'s company bio, 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$862.906m
  • Market Cap: US$542.511m
  • Shares outstanding: 75.30m
  • Website: https://www.cactuswhd.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHDNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2018
43CDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2018

Biography

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment. The company’s principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink systems, frac stacks, zipper manifolds, and production trees. It also provides 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. The company sells or rents its products for onshore unconventional oil and gas wells that are utilized during the drilling, completion, and production phases of its customers’ wells. It operates 14 service centers in the United States, as well as 3 service centers in Eastern Australia. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:51
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.