Cactus, Inc.
Cactus, Inc. Fundamental Analysis
Cactus, Inc. (WHD) shows moderate financial fundamentals with a PE ratio of 19.18, profit margin of 15.39%, and ROE of 14.21%. The company generates $1.1B in annual revenue with weak year-over-year growth of 3.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WHD's fundamental strength across five key dimensions:
Efficiency Score
WeakWHD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWHD trades at attractive valuation levels.
Growth Score
WeakWHD faces weak or negative growth trends.
Financial Health Score
ExcellentWHD maintains a strong and stable balance sheet.
Profitability Score
ModerateWHD maintains healthy but balanced margins.
Key Financial Metrics
Is WHD Expensive or Cheap?
P/E Ratio
WHD trades at 19.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WHD's PEG of -4.43 indicates potential undervaluation.
Price to Book
The market values Cactus, Inc. at 2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.22 times EBITDA. This signals the market has high growth expectations.
How Well Does WHD Make Money?
Net Profit Margin
For every $100 in sales, Cactus, Inc. keeps $15.39 as profit after all expenses.
Operating Margin
Core operations generate 23.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.21 in profit for every $100 of shareholder equity.
ROA
Cactus, Inc. generates $8.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cactus, Inc. produces operating cash flow of $256.15M, showing steady but balanced cash generation.
Free Cash Flow
Cactus, Inc. generates strong free cash flow of $217.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.15 in free cash annually.
FCF Yield
WHD converts 6.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How WHD Stacks Against Its Sector Peers
| Metric | WHD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.18 | 19.95 | Neutral |
| ROE | 14.21% | 963.00% | Weak |
| Net Margin | 15.39% | -48347.00% (disorted) | Strong |
| Debt/Equity | 0.03 | -0.54 (disorted) | Distorted |
| Current Ratio | 5.81 | 4.82 | Strong Liquidity |
| ROA | 8.87% | -2296.00% (disorted) | Weak |
WHD outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cactus, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.81%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-19.63%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
2.17%
Industry Style: Cyclical, Value, Commodity
Growing