Cactus (WHD) AI Stock Analysis

• Market Cap: $3.65B
• Dividend Yield: 1.18%
• Average Volume (3M): 641.56K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.22
• 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): 0.67
• Shares Outstanding: 68,840,126
• 10 Day Avg. Volume: 831,484
• 30 Day Avg. Volume: 641,562
• PEG Ratio: 3.22
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 13.99
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $50.25
• Price Target Upside: 10.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $1.07B

• Rating: 77 Outperform
• Price Target: $51.00 ▲(11.72% Upside)

Cactus, Inc. demonstrates strong financial stability and technical momentum, supported by strategic acquisitions. While facing some revenue growth challenges and tariff impacts, the company's solid balance sheet and international expansion efforts provide a positive outlook. The stock is moderately valued, with a consistent dividend policy adding to shareholder returns.

Positive Factors

Strategic Acquisitions

Acquiring Baker Hughes' surface pressure control business strengthens Cactus's market position and expands product offerings, enhancing long-term competitiveness.

Cash Position

A strong cash position provides financial flexibility for strategic investments and buffers against market volatility, supporting sustainable growth.

International Expansion

Growing international sales indicate successful market penetration and diversification, reducing reliance on domestic markets and enhancing revenue stability.

Negative Factors

Revenue Decline

Sequential revenue decline suggests challenges in maintaining growth momentum, potentially impacting future profitability and market confidence.

Tariff Impact

High tariffs increase costs and pressure margins, necessitating strategic adjustments to maintain competitiveness and profitability.

Decreased Margins

Decreasing margins in key segments could signal operational inefficiencies or rising costs, impacting overall financial health and investor confidence.

Cactus Business Overview & Revenue Model

Company Description

Cactus (WHD) is a leading provider of wellhead and pressure control equipment for the oil and natural gas industry. The company specializes in designing, manufacturing, and servicing a wide range of products that support drilling and production operations. Cactus operates primarily in the upstream sector of the energy market, offering innovative solutions that enhance the efficiency and safety of well operations.

How the Company Makes Money

Cactus generates revenue through the sale and rental of its wellhead and pressure control equipment, which are essential for managing the flow of oil and gas during extraction. The company has a robust revenue model that includes direct sales to exploration and production companies, as well as long-term contracts for equipment rentals and maintenance services. Key revenue streams include new product sales, aftermarket services, and rental income. Additionally, Cactus benefits from strategic partnerships with major oil and gas companies, which ensure a steady demand for its products and services, thus contributing significantly to its overall earnings.

Cactus Financial Statement Overview

Summary

Cactus is financially sound with strong profitability and a stable balance sheet. While the company faces some revenue growth challenges, its low leverage and efficient equity utilization provide a solid foundation for future growth. Cash flow management remains a key area to monitor.

Income Statement

Cactus demonstrates strong profitability with a consistent net profit margin around 15-16% and a healthy EBIT margin. However, the recent TTM data shows a slight decline in revenue growth, indicating potential challenges in maintaining growth momentum.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial management. The return on equity remains robust, reflecting efficient use of equity capital. The equity ratio is strong, showcasing financial stability.

Cash Flow

Cactus has a positive free cash flow growth in the TTM period, indicating effective cash management. However, the operating cash flow to net income ratio has decreased, suggesting potential pressure on cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.13B	1.10B	688.37M	438.59M	348.57M
Gross Profit	444.90M	436.39M	406.29M	242.45M	121.45M	111.62M
EBITDA	337.72M	363.54M	332.35M	211.57M	111.73M	111.66M
Net Income	172.86M	185.41M	169.17M	110.17M	49.59M	34.45M
Balance Sheet
Total Assets	1.86B	1.74B	1.52B	1.12B	982.08M	815.59M
Cash, Cash Equivalents and Short-Term Investments	445.61M	342.84M	133.79M	344.53M	301.67M	288.66M
Total Debt	39.65M	41.72M	39.97M	35.52M	33.21M	28.13M
Total Liabilities	471.36M	475.15M	457.79M	408.45M	387.05M	264.82M
Stockholders Equity	1.19B	1.07B	865.52M	571.92M	468.64M	352.97M
Cash Flow
Free Cash Flow	208.26M	276.94M	296.30M	89.59M	49.82M	118.89M
Operating Cash Flow	252.74M	316.11M	340.28M	117.88M	63.76M	143.38M
Investing Cash Flow	-46.06M	-35.39M	-654.79M	-25.54M	-11.63M	-18.15M
Financing Cash Flow	-63.55M	-70.14M	103.28M	-47.38M	-39.39M	-40.21M

Cactus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHD, the sentiment is Positive. The current price of 45.65 is above the 20-day moving average (MA) of 44.50, above the 50-day MA of 41.72, and above the 200-day MA of 41.83, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHD.

Cactus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHD	77 Outperform	$3.65B	18.15	15.77%	1.18%	-3.76%	-11.00%
VAL	76 Outperform	$3.44B	8.83	17.49%	―	6.81%	-61.94%
OII	73 Outperform	$2.36B	10.33	28.92%	―	8.71%	72.09%
WFRD	72 Outperform	$5.65B	14.23	27.88%	1.27%	-10.19%	-23.74%
NOV	72 Outperform	$5.72B	15.65	5.93%	3.25%	-1.43%	-63.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MRC	45 Neutral	―	―	0.28%	―	-10.96%	-169.10%

Cactus Corporate Events

Cactus Amends Credit Facility for $100 Million Loan

On December 1, 2025, Cactus Companies, a subsidiary of Cactus Inc., amended its ABL Credit Facility to establish a delayed draw term loan facility with a principal amount of up to $100 million. This amendment allows Cactus Companies to make two draws within six months for financing the acquisition of interests in Baker Hughes Pressure Control LLC and other related uses. The facility’s maturity is set for three years after the first loan funding, with interest options and a requirement for quarterly repayments starting April 2026. The amendment also extended the maturity date for revolving loans to December 1, 2030, and expanded collateral to include certain equipment and intellectual property.

Cactus to Acquire Baker Hughes Surface Business

Cactus, Inc. recently completed the acquisition of the FlexSteel business through a merger with HighRidge Resources, Inc. on February 28, 2023, and is set to acquire Baker Hughes Company’s surface pressure control business. These strategic moves aim to strengthen Cactus’s market position and expand its product offerings, potentially impacting its financial performance and stakeholder interests.