Cactus, Inc. (WHD)
NYSE:WHD
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Cactus
(NYSE:WHD)
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Rating:75Outperform
Price Target:
$71.00
▲(34.78% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by strong operating profitability, excellent balance-sheet strength, and robust free cash flow. Technicals are supportive with positive trend and momentum. Offsetting factors include weaker recent net-margin conversion, mixed valuation signals due to a negative P/E, and earnings-call guidance that points to near-term margin pressure and integration/tariff/backlog headwinds despite longer-term synergy potential.
Positive Factors
Operating profitability
Exceptionally high gross and EBIT margins indicate durable pricing power and cost control in pressure-control products. This operating leverage supports strong cash generation, funds reinvestment and dividends, and provides a structural advantage versus lower-margin competitors across drilling cycles.
Negative Factors
Net margin compression
A sharp decline in net margin despite strong operating margins signals below-the-line pressures (acquisition accounting, taxes, interest or one-offs) that reduce earnings conversion. Persisting lower net margins would limit retained earnings and could slow balance-sheet deleveraging or returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability
Exceptionally high gross and EBIT margins indicate durable pricing power and cost control in pressure-control products. This operating leverage supports strong cash generation, funds reinvestment and dividends, and provides a structural advantage versus lower-margin competitors across drilling cycles.
Read all positive factors
Cactus (WHD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.86B
Dividend Yield1.16%
Average Volume (3M)754.60K
Price to Earnings (P/E)55.0
Beta (1Y)1.26
Revenue Growth4.50%
EPS Growth-62.41%
CountryUS
Employees1,600
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.08
Shares Outstanding69,418,430
10 Day Avg. Volume835,213
30 Day Avg. Volume754,604
Financial Highlights & Ratios
PEG Ratio-1.42
Price to Book (P/B)2.55
Price to Sales (P/S)2.90
P/FCF Ratio14.42
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue3.21
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda11.75
Forecast
1Y Price Target
$66.00Price Target Upside25.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.62
Revenue Forecast (FY)$1.57B
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 sy...
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 completio...
Cactus Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call communicated a mix of solid core profitability, strong cash position, and a transformative acquisition that management believes will drive material supply‑chain synergies and international growth over the medium term. Near‑term headwinds include seasonal softness in Spoolable Technologies, modest sequential declines in total revenue and EBITDA, integration and transaction costs, tariff uncertainty, and an observed order slowdown at the recently acquired Cactus International that may pressure margins and results through 2026. Management's tone was optimistic about long‑term upside (synergies, market share gains in the Middle East, Vietnam ramp), but realistic about short‑term dilution and timing of benefits.Positive Updates
Total Company Results — Strong Profitability
Q4 revenue of $261 million; adjusted EBITDA of $85 million and adjusted EBITDA margin of 32.7% (only a 20 bps decline from Q3's 32.9%). GAAP net income of $48 million and adjusted net income of $52 million ($0.65 per share).
Negative Updates
Sequential Revenue and EBITDA Slight Declines
Total company revenues declined 1% sequentially; adjusted EBITDA declined 1.7% sequentially (from $87M to $85M), and adjusted EBITDA margin slipped from 32.9% to 32.7%.
Read all updates
Q4-2025 Updates
Positive
Negative
Total Company Results — Strong Profitability
Q4 revenue of $261 million; adjusted EBITDA of $85 million and adjusted EBITDA margin of 32.7% (only a 20 bps decline from Q3's 32.9%). GAAP net income of $48 million and adjusted net income of $52 million ($0.65 per share).
Read all positive updates
Company Guidance
Guidance highlights: for Q1 the company expects Pressure Control revenue of $295–$305 million (with international contributing ~$130–$140 million) and Pressure Control adjusted EBITDA margins of 23%–25% (excludes ~ $4M of stock‑based comp and amortization of Cactus inventory); Spoolable Technologies revenue is expected to be down mid‑single digits sequentially with adjusted EBITDA margins of ~33%–35% (excludes ~ $1M SBC); adjusted corporate EBITDA is expected to be a charge of ~$(5)M (excludes ~ $2M SBC). Additional metrics: Q1 total D&A is expected to be ~$21M ($12M Pressure Control including Cactus International, $9M Spoolable); Q1 effective tax rate ~20% (adjusted EPS tax ~24%); FY2026 net CapEx guide is $40–50M (FY2025 net CapEx was $39M; Q4 net CapEx ~$4M). On Cactus International: it closed Jan 1, generated $627M revenue in 2025, ended 2025 backlog at ~ $550M (was >$600M at 2024 close), the company targets $10M of annualized synergies within 1 year and expects meaningful supply‑chain savings into 2027, and sees 2026 more in line with 2024 with order pick‑up in H2 2026 into 2027. Tariff notes: Sections 301/232 remain ~75% on most China imports, Vietnam Section 232 ~50% (API monogram expected early Q2 to enable U.S. displacement).Cactus Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.19B | 1.08B | 1.13B | 1.10B | 688.37M | 438.59M |
| Gross Profit | 666.42M | 589.30M | 436.39M | 406.29M | 242.45M | 121.45M |
| EBITDA | 324.23M | 353.45M | 363.54M | 332.35M | 211.57M | 111.73M |
| Net Income | 73.19M | 166.01M | 185.41M | 169.17M | 110.17M | 49.59M |
Balance Sheet | ||||||
| Total Assets | 2.46B | 1.87B | 1.74B | 1.52B | 1.12B | 982.08M |
| Cash, Cash Equivalents and Short-Term Investments | 291.61M | 494.58M | 342.84M | 133.79M | 344.53M | 301.67M |
| Total Debt | 55.23M | 37.75M | 41.72M | 39.97M | 35.52M | 33.21M |
| Total Liabilities | 811.82M | 438.57M | 475.15M | 457.79M | 408.45M | 387.05M |
| Stockholders Equity | 1.19B | 1.23B | 1.07B | 865.52M | 571.92M | 468.64M |
Cash Flow | ||||||
| Free Cash Flow | 304.44M | 217.21M | 276.94M | 296.30M | 89.59M | 49.82M |
| Operating Cash Flow | 342.74M | 256.02M | 316.11M | 340.28M | 117.88M | 63.76M |
| Investing Cash Flow | -333.60M | -39.06M | -35.39M | -654.79M | -25.54M | -11.63M |
| Financing Cash Flow | -66.40M | -66.66M | -70.14M | 103.28M | -47.38M | -39.39M |
Cactus Technical Analysis
Neutral
52.68
Price Trends
53.90
Positive
53.70
Positive
47.47
Positive
Market Momentum
1.96
Negative
52.39
Neutral
53.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHD, the sentiment is Neutral. The current price of 52.68 is below the 20-day moving average (MA) of 57.92, below the 50-day MA of 53.90, and above the 200-day MA of 47.47, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 53.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WHD.
Cactus Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.86B | 54.96 | 6.16% | 1.16% | 4.50% | -62.41% | |
73 Outperform | $3.87B | 11.23 | 34.53% | ― | 2.39% | 88.22% | |
70 Outperform | $7.64B | 16.13 | 28.39% | 1.25% | -8.81% | >-0.01% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $6.37B | 6.38 | 36.16% | ― | -9.95% | 233.69% | |
58 Neutral | $7.26B | 79.50 | 1.45% | 3.24% | -1.33% | -84.10% |
* Energy Sector Average
WHD
Cactus
58.28
17.79
43.92%
NOV
NOV
20.26
8.71
75.44%
OII
Oceaneering International
38.29
19.22
100.79%
WFRD
Weatherford International
103.88
60.85
141.39%
VAL
Valaris
92.64
55.02
146.25%
Cactus Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Cactus Announces Leadership Changes and Board Election Results
Positive
May 12, 2026
On May 12, 2026, Cactus, Inc. appointed Steven Bender as Chief Operating Officer and Chief Executive Officer of its Spoolable Technologies Segment, while Stephen Tadlock stepped back from that segment CEO role but remained Executive Vice President...
Executive/Board Changes
Cactus Announces Director’s Exit and Board Size Reduction
Neutral
Mar 27, 2026
On March 24, 2026, Cactus, Inc. director Bruce Rothstein informed the company that he would not stand for re-election at the 2026 annual meeting of stockholders, with the company clarifying that his decision did not stem from any disagreement over...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Cactus Highlights Growth Strategy Following Recent Acquisitions Integration
Positive
Mar 16, 2026
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 ca...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.