Cactus (WHD) AI Stock Analysis

• Market Cap: $3.15B
• Dividend Yield: 1.25%
• Average Volume (3M): 734.81K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.15
• Revenue Growth: -0.71%
• EPS Growth: -7.89%
• Country: US
• Employees: 1,600
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.67
• Shares Outstanding: 68,574,875
• 10 Day Avg. Volume: 644,931
• 30 Day Avg. Volume: 734,811
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $46.67
• Price Target Upside: 10.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 82 Outperform
• Price Target: $49.00 ▲(15.92% Upside)

Cactus exhibits strong financial performance with robust cash flow and a healthy balance sheet, which are the most significant factors contributing to its high score. Technical indicators suggest short-term bullish momentum, although caution is warranted due to potential overbought conditions. The company's strategic acquisitions and dividend increase further enhance its valuation appeal.

Positive Factors

Strong Cash Flow Management

Strong cash flow management enhances financial stability and provides flexibility for future investments and strategic initiatives.

Strategic Acquisition

The acquisition supports strategic growth and diversification, potentially enhancing market position and expanding product offerings.

Healthy Balance Sheet

A healthy balance sheet with low leverage ensures financial resilience and the ability to withstand market fluctuations.

Negative Factors

Pressure Control Segment Decline

Declining revenues and margins in the Pressure Control segment could impact overall profitability and require strategic adjustments.

Impact of Increased Tariffs

Higher tariffs on steel increase supply chain costs, potentially compressing margins and affecting competitive pricing.

Overall Revenue Decline

A decline in overall revenue indicates potential challenges in market demand or operational efficiency, affecting growth prospects.

Cactus Business Overview & Revenue Model

Company Description

Cactus (WHD) is a leading provider of wellhead and pressure control equipment in the oil and gas industry, specializing in the design, manufacturing, and servicing of high-performance products. The company operates primarily in the energy sector, catering to exploration and production companies by supplying essential equipment for drilling and production operations, particularly in onshore and offshore oil and gas wells. Its core offerings include wellhead systems, valves, and other pressure-related equipment critical for maintaining safety and efficiency in resource extraction.

How the Company Makes Money

Cactus generates revenue primarily through the sale and rental of its wellhead and pressure control equipment to oil and gas operators. The company has a diverse revenue model that includes both direct sales and service contracts, which encompass installation, maintenance, and repair of its products. Key revenue streams include the initial sale of equipment, recurring revenues from service agreements, and rental income from equipment leased to clients. Cactus also benefits from strategic partnerships with major oil and gas companies, which enhance its market reach and provide a steady stream of orders. Additionally, the company’s focus on innovation and high-quality products allows it to command premium pricing in a competitive market.

Cactus Financial Statement Overview

Summary

Cactus demonstrates strong financial performance with consistent revenue growth and improving profit margins. The company maintains a healthy balance sheet with low leverage and excellent cash flow generation, contributing to its resilience and ability to navigate market fluctuations effectively.

Income Statement

Cactus demonstrates strong financial performance with consistent revenue growth and improving profit margins. The gross profit margin in TTM is 19.4%, supported by a net profit margin of 16.2%. While there was a slight decline in total revenue from 2024 to TTM, the EBIT and EBITDA margins remain robust at 26.4% and 31.1% respectively, indicating efficient operations.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.03 in TTM, indicating low leverage and financial stability. The equity ratio of 73.9% underscores substantial equity financing. Furthermore, the ROE stands at 13.4%, reflecting efficient use of shareholders' equity to generate profit.

Cash Flow

Cactus exhibits strong cash flow management with a free cash flow to net income ratio of 1.35 in TTM, highlighting robust cash generation capability. The operating cash flow to net income ratio of 1.52 further supports solid operational cash flow. Despite a decrease in free cash flow compared to the previous year, the overall cash flow indicators remain positive.

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	411.82M	436.39M	406.29M	242.45M	121.45M	111.62M
EBITDA	325.10M	363.54M	337.66M	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	1.39B	1.07B	865.52M	571.92M	468.64M	352.97M
Cash Flow
Free Cash Flow	156.67M	276.94M	296.30M	89.59M	49.82M	118.89M
Operating Cash Flow	190.97M	316.11M	340.28M	117.88M	63.76M	143.38M
Investing Cash Flow	-37.84M	-35.39M	-654.79M	-25.54M	-11.63M	-18.15M
Financing Cash Flow	-50.26M	-70.14M	103.28M	-47.38M	-39.39M	-40.21M

Cactus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 42.27 is above the 20-day moving average (MA) of 37.29, above the 50-day MA of 39.41, and below the 200-day MA of 44.63, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 87.21 is Negative, 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	―	$3.15B	14.84	17.23%	1.25%	-0.71%	-7.89%
VAL	―	$4.02B	14.71	12.23%	―	18.78%	-72.57%
WFRD	―	$5.25B	12.73	27.88%	1.49%	-10.19%	-23.74%
OII	―	$2.35B	10.29	28.92%	―	8.71%	72.09%
NOV	―	$5.55B	14.98	5.93%	3.33%	-1.43%	-63.13%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MRC	―	$1.19B	―	5.66%	―	-9.81%	-124.43%

Cactus Corporate Events

Cactus Announces Acquisition of Baker Hughes Unit

Cactus, Inc. announced its participation in upcoming investor meetings, where it will present materials related to its operations and financial performance. The company recently completed a significant merger with FlexSteel Holdings, enhancing its market position and operational capabilities. Additionally, Cactus plans to acquire Baker Hughes Company’s surface pressure control business, which is expected to further strengthen its industry positioning. These strategic moves are likely to impact Cactus’s operations and stakeholder interests positively.

The most recent analyst rating on (WHD) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus, Inc. Balances Growth and Challenges in Earnings Call

The recent earnings call for Cactus, Inc. painted a picture of mixed sentiment, balancing strong financial metrics with external challenges. While the company reported robust free cash flow and a solid cash balance, these positives were tempered by declines in key segments due to increased tariffs, legal expenses, and reduced margins. This blend of positive and negative factors contributed to a balanced overall sentiment.

Cactus, Inc. Reports Q2 2025 Earnings and Strategic Acquisition

Cactus, Inc. is a company that designs, manufactures, and sells pressure control and spoolable pipe technologies primarily for the oil and gas industry, with operations in North America and Australia. In the second quarter of 2025, Cactus reported revenues of $273.6 million and a net income of $49.0 million, reflecting a decline compared to previous quarters. Despite the challenging market conditions, the company maintained a strong cash position with $405.2 million in cash and no outstanding bank debt. Key highlights include an 8% increase in dividends and a strategic acquisition of a 65% majority interest in Baker Hughes’ Surface Pressure Control business. The company’s Spoolable Technologies segment showed growth, while the Pressure Control segment faced challenges due to lower rental revenues and tariff impacts. Looking forward, Cactus anticipates a continued decline in U.S. land rig counts but remains optimistic about its strategic acquisition, which is expected to provide a broader geographic footprint and revenue diversification.