Cactus (WHD) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: 1.16%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.32
• Revenue Growth: -3.76%
• EPS Growth: -11.00%
• Country: US
• Employees: 1,600
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.65
• Shares Outstanding: 68,899,840
• 10 Day Avg. Volume: 1,449,182
• 30 Day Avg. Volume: 1,179,730
• PEG Ratio: -1.42
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 14.42
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 8.46
• 1Y Price Target: $64.25
• Price Target Upside: 41.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.04
• Revenue Forecast (FY): $1.55B

• Rating: 65 Neutral
• Price Target: $49.00 ▲(7.69% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is anchored by strong financial quality—low leverage and durable cash generation—partly offset by weaker technical momentum and lower confidence in the latest income statement presentation. Guidance and commentary point to longer-term acquisition upside, but near-term margin dilution, backlog softening, and tariff-related uncertainty temper the outlook.

Positive Factors

Conservative balance sheet

Very low leverage and a strengthening capital base provide durable financial flexibility. This conservatism supports funding of acquisitions, capex, dividends and integration costs without stress during cyclical downturns, preserving strategic optionality over the next 2–6 months and beyond.

Reliable cash generation

Consistent operating and free cash flow with strong cash conversion underpins the company's ability to self-fund growth, service transaction-related outflows and maintain dividends. This cash profile reduces refinancing risk and supports investment in integration and product development over time.

Acquisition expands scale & synergies

The Baker Hughes surface pressure control JV materially increases geographic scale and installed base, enabling market access in the Middle East and supply‑chain savings into 2027. If realized, $10M of synergies and procurement gains should strengthen long‑term margins and competitive position.

Negative Factors

Cooling revenue trend

A decelerating revenue trend reduces visibility on sustainable top‑line growth and risks compressing operating leverage. If demand weakness persists into 2026, margin recovery and return metrics could be constrained, making performance reliant on successful international recovery and integration execution.

Tariff and input‑cost exposure

High tariffs on China imports and only partial relief from Vietnam create persistent input‑cost pressure until manufacturing shifts and certifications complete. This structural headwind can erode margins and requires operational changes (retooling, logistics), delaying margin recovery across cycles.

Integration, backlog and margin dilution

The acquired international business shows an order slowdown and backlog contraction, while purchase accounting raises D&A and inventory amortization. These factors create credible near‑term margin dilution risk and increase dependence on seamless integration to deliver the projected synergies.

Cactus Business Overview & Revenue Model

Company Description

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States, Australia, China, and the Kingdom of Saudi Arabia. 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 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. The company sells or rents its products for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. In addition, it operates 15 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.

How the Company Makes Money

Cactus makes money primarily by selling and renting specialized oilfield equipment and providing associated services. A major revenue stream is the sale of wellhead systems and related pressure control components used during drilling and completion; these are typically ordered per well or per project and generate product revenue when delivered. The company also generates revenue from rentals of equipment used during drilling/completion activities, which produces recurring rental income for the time the equipment is deployed. In addition, Cactus earns service revenue through installation, field service, maintenance, and other support activities tied to its equipment in the field. Overall earnings are driven by customer activity levels in land drilling and well completions (e.g., rig counts, well completion intensity), pricing and utilization of rental fleets, and the company’s ability to win equipment specifications and repeat business with operators and drilling contractors. Specific material partnership details: null.

Cactus Financial Statement Overview

Summary

Overall fundamentals are strong, led by a conservatively financed balance sheet (very low leverage) and consistently positive operating/free cash flow with good cash conversion. Offsetting this, revenue growth cooled into 2024 and appears to decline in 2025, and the latest-year income statement shows implausible margin structure that reduces confidence in the most recent profitability trend.

Income Statement

Revenue expanded strongly from 2021–2024 (with a step-up in 2022–2023), but growth cooled in 2024 and appears to decline in 2025. Profitability is generally solid for the period (net margin mostly in the mid-teens and EBIT/EBITDA margins healthy in 2021–2024), supporting consistent earnings power. A key weakness is the 2025 annual set showing implausible margin structure (e.g., gross margin at 0% and EBIT/EBITDA margins at 100%), which raises data-quality/one-time classification risk and reduces confidence in the latest-year trend.

Balance Sheet

The balance sheet looks conservatively financed: total debt remains low and leverage is minimal (debt-to-equity consistently well below 0.10, improving to ~0.03 in the latest year). Equity and assets have grown meaningfully over time, indicating a strengthening capital base. Returns on equity were strong in 2022–2024 (roughly high-teens), though the lack of a 2025 return metric limits visibility into the most recent profitability on capital.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive, and free cash flow has generally tracked net income well (free cash flow to net income ~0.76–0.88 across years). Cash conversion improved materially after 2021 (when operating cash flow was below net income), with operating cash flow covering net income comfortably in 2022–2025. The main weakness is volatility in free cash flow growth (declines in 2021 and 2024, sharp rebound in 2023 and again in 2025), suggesting sensitivity to working capital and/or cycle effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.13B	1.10B	688.37M	438.59M
Gross Profit	589.30M	436.39M	406.29M	242.45M	121.45M
EBITDA	353.45M	363.54M	332.35M	211.57M	111.73M
Net Income	166.01M	185.41M	169.17M	110.17M	49.59M
Balance Sheet
Total Assets	1.87B	1.74B	1.52B	1.12B	982.08M
Cash, Cash Equivalents and Short-Term Investments	494.58M	342.84M	133.79M	344.53M	301.67M
Total Debt	37.75M	41.72M	39.97M	35.52M	33.21M
Total Liabilities	438.57M	475.15M	457.79M	408.45M	387.05M
Stockholders Equity	1.23B	1.07B	865.52M	571.92M	468.64M
Cash Flow
Free Cash Flow	217.21M	276.94M	296.30M	89.59M	49.82M
Operating Cash Flow	256.02M	316.11M	340.28M	117.88M	63.76M
Investing Cash Flow	-39.06M	-35.39M	-654.79M	-25.54M	-11.63M
Financing Cash Flow	-66.66M	-70.14M	103.28M	-47.38M	-39.39M

Cactus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHD, the sentiment is Negative. The current price of 45.5 is below the 20-day moving average (MA) of 51.97, below the 50-day MA of 53.50, and above the 200-day MA of 44.93, indicating a neutral trend. The MACD of -2.28 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 13.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHD.

Cactus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	77 Outperform	$3.43B	6.88	39.31%	―	8.71%	72.09%
VAL	75 Outperform	$6.73B	3.62	38.72%	―	6.81%	-61.94%
WFRD	69 Neutral	$6.20B	13.11	28.18%	1.25%	-10.19%	-23.74%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WHD	65 Neutral	$3.71B	18.87	14.21%	1.16%	-3.76%	-11.00%
NOV	62 Neutral	$6.73B	40.10	2.26%	3.24%	-1.43%	-63.13%

Cactus Corporate Events

Cactus Highlights Growth Strategy Following Recent Acquisitions Integration

Cactus, Inc. has released an investor presentation for upcoming meetings with certain investors in March 2026, highlighting its role as a through-cycle outperformer in onshore equipment solutions. The materials emphasize strong margins and free cash flow generation, an experienced management team with significant equity ownership, and the integration of its Spoolable Technologies segment from the 2023 FlexSteel acquisition and the January 1, 2026 purchase of a majority stake in Baker Hughes’ former surface pressure control business, now operated as Cactus International.

The presentation also underscores the company’s use of non-GAAP metrics such as EBITDA and Adjusted EBITDA to illustrate performance across segments, while noting that some financial information for Cactus International is based on Baker Hughes data that has not yet been audited or fully reconciled. This disclosure signals ongoing evolution of Cactus’s financial profile as it absorbs recent acquisitions, with potential implications for margin resilience and its competitive positioning in pressure control and spoolable technologies once full audited data and synergies are realized.

The most recent analyst rating on (WHD) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Announces Board Transition Amid Strong 2025 Results

On February 22, 2026, Cactus director Melissa Law informed the company she would not stand for re-election at the 2026 annual meeting, with the board now evaluating succession candidates and emphasizing that her decision reflects no disagreements over operations or policies. This board transition comes as Cactus reported fourth-quarter 2025 revenue of $261.2 million, net income of $48.3 million and strong margins, supported by outperformance in its Pressure Control segment and offset by seasonal softness in Spoolable Technologies.

For full year 2025, Cactus generated $1.08 billion of revenue, $201.6 million of net income and healthy cash flow from operations, ending December 31, 2025 with $494.6 million in cash and no bank debt, while incurring acquisition-related costs tied to its FlexSteel and Baker Hughes surface pressure control deals. The January 1, 2026 closing of the majority stake in Baker Hughes’ Surface Pressure Control business, now Cactus International, marks a transformational acquisition that management says will diversify earnings geographically, bolster the Pressure Control segment and position the company for long-term growth despite a flat near-term U.S. land activity outlook and macro headwinds.

The most recent analyst rating on (WHD) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Grants RSUs, Names CEO for New Joint Venture

On December 30, 2025, in connection with the closing of its joint venture with Baker Hughes known as Cactus International, Cactus, Inc. approved a one-time grant of restricted stock units effective January 1, 2026 for key executives Stephen Tadlock, Jay A. Nutt, and Steven Bender, with awards structured to vest ratably over two- and three-year periods and sized between $300,000 and $500,000. The grants, aimed at retaining these identified key leaders, accompanied the appointment of Tadlock—previously Executive Vice President and head of the Spoolable Technologies segment—as Chief Executive Officer of Cactus International, a move that underscores the company’s focus on leadership continuity and management stability as it integrates and scales the new joint venture within its broader operations.

The most recent analyst rating on (WHD) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Completes Transformational Surface Pressure Control Acquisition

On January 2, 2025, Cactus, Inc. completed its previously announced acquisition of a 65% controlling interest in Baker Hughes Company’s Surface Pressure Control business, a move the company described as transformational because it broadens its geographic footprint and opens access to new growth markets while reinforcing its focus on safety, customer execution, margins and returns. In connection with the transaction, the parties entered into an amended and restated LLC Agreement for their joint venture that sets out an exit option for Baker Hughes and Cactus based on a capped valuation tied to the venture’s Adjusted EBITDA, governance provisions requiring supermajority board approval for major actions, restrictions on transfers of membership interests, and mutual non-compete obligations in specified surface pressure control markets, collectively shaping control, valuation and competitive boundaries for the combined business.

The most recent analyst rating on (WHD) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.