NYSE:WHD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

-6.3%

WHD

0.4%

US Energy Services

1.8%

US Market


1 Year Return

-27.4%

WHD

-46.0%

US Energy Services

7.3%

US Market

Return vs Industry: WHD exceeded the US Energy Services industry which returned -46% over the past year.

Return vs Market: WHD underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

WHDIndustryMarket
7 Day-6.3%0.4%1.8%
30 Day-12.5%-13.3%-0.7%
90 Day-13.3%-16.2%0.06%
1 Year-27.4%-27.4%-44.5%-46.0%9.7%7.3%
3 Yearn/a-55.2%-60.6%46.3%36.9%
5 Yearn/a-66.3%-71.2%64.5%46.5%

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?

2.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WHD ($26.68) is trading below our estimate of fair value ($27.36)

Significantly Undervalued: WHD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WHD is good value based on its PE Ratio (12.9x) compared to the Energy Services industry average (14.2x).

PE vs Market: WHD is good value based on its PE Ratio (12.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WHD is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: WHD is overvalued based on its PB Ratio (4.3x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Cactus forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHD's forecast earnings growth (4.1% per year) is above the savings rate (2.7%).

Earnings vs Market: WHD's earnings (4.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: WHD's earnings are forecast to grow, but not significantly.

Revenue vs Market: WHD's revenue (4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WHD's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WHD's Return on Equity is forecast to be high in 3 years time (29.1%)


Next Steps

Past Performance

How has Cactus performed over the past 5 years?

62.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WHD's earnings have grown significantly by 62.2% per year over the past 5 years.

Accelerating Growth: WHD's earnings growth over the past year (1.4%) is below its 5-year average (62.2% per year).

Earnings vs Industry: WHD earnings growth over the past year (1.4%) exceeded the Energy Services industry -13.1%.


Return on Equity

High ROE: WHD's Return on Equity (37.7%) is considered high.


Return on Assets

ROA vs Industry: WHD has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: WHD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Cactus's financial position?


Financial Position Analysis

Short Term Liabilities: WHD's short term assets ($364.5M) exceeds its short term liabilities ($93.0M)

Long Term Liabilities: WHD's short term assets (364.5M) exceeds its long term liabilities (246.3M)


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

  • Explore more healthy companies in the Energy industry.

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate WHD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WHD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if WHD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WHD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WHD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cactus's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Scott Bender (65yo)

8.8yrs

Tenure

US$1,628,133

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: Insufficient data to establish whether Scott's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

4.7yrs

Average Tenure

60.5yo

Average Age

Experienced Management: WHD's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

67yo

Average Age

Experienced Board: WHD's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$69,547,50926 Mar 19
Scott Bender
EntityIndividual
Role
Chief Executive Officer
President
Shares1,935,639
Max PriceUS$35.93
SellUS$69,547,50926 Mar 19
Joel Bender
EntityIndividual
Role
Member of the Board of Directors
Senior VP
Shares1,935,639
Max PriceUS$35.93
SellUS$8,223,65826 Mar 19
Steven Bender
EntityIndividual
Shares228,880
Max PriceUS$35.93
SellUS$213,783,50026 Mar 19
Cadent Energy Partners, LLC
EntityCompany
Shares5,950,000
Max PriceUS$35.93
SellUS$578,00626 Mar 19
John O'Donnell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,087
Max PriceUS$35.93
SellUS$624,85926 Mar 19
Michael McGovern
EntityIndividual
Role
Member of the Board of Directors
Director
Shares17,391
Max PriceUS$35.93
SellUS$609,26526 Mar 19
Gary Rosenthal
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,957
Max PriceUS$35.93
SellUS$328,04126 Mar 19
Alan Semple
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares9,130
Max PriceUS$35.93

Ownership Breakdown


Management Team

  • Steve Tadlock

    VP & CFO

    • Tenure: 0.6yrs
    • Compensation: US$2.27m
  • David Isaac (58yo)

    General Counsel

    • Tenure: 0yrs
  • Scott Bender (65yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$1.63m
  • Brian Small (62yo)

    Interim Principal Accounting Officer & Senior Finance Director

    • Tenure: 0.08yrs
  • Joel Bender (59yo)

    Senior VP

    • Tenure: 8.8yrs
  • John Fitzgerald

    Director of Corporate Development and Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike McGovern (67yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$193.97k
  • Gary Rosenthal (69yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$1.44m
  • Bruce Rothstein (67yo)

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: US$189.60k
  • Andy O'Donnell (71yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$193.97k
  • Alan Semple (59yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$1.45m
  • Scott Bender (65yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$1.63m
  • Joel Bender (59yo)

    Senior VP

    • Tenure: 8.8yrs

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$2.046b
  • Market Cap: US$1.256b
  • Shares outstanding: 75.11m
  • 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, frac stacks, zipper man ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.