Cactus (WHD) AI Stock Analysis

• Market Cap: $3.29B
• Dividend Yield: 1.25%
• Average Volume (3M): 719.80K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.24
• 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: 618,770
• 30 Day Avg. Volume: 719,800
• 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: 0.77
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $46.50
• Price Target Upside: 12.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.47
• Revenue Forecast (FY): $1.07B

• Rating: 71 Outperform
• Price Target: $48.00 ▲(16.56% Upside)

Cactus demonstrates strong financial health with a solid balance sheet and profitability, which are the most significant factors supporting its score. The technical analysis and valuation suggest a fair market position, though mixed signals in market momentum and valuation metrics warrant caution. The earnings call highlights resilience in international markets but also underscores challenges with tariffs and revenue declines.

Positive Factors

Strategic Acquisition

This acquisition indicates strategic growth and diversification, potentially enhancing market position and product offerings in the long term.

Strong Free Cash Flow

Robust cash flow generation strengthens financial flexibility, enabling reinvestment in growth opportunities and shareholder returns.

Dividend Increase

The dividend increase reflects confidence in cash flow durability and commitment to returning value to shareholders, enhancing investor appeal.

Negative Factors

Pressure Control Segment Decline

The decline in this segment indicates challenges in maintaining revenue and margin stability, potentially affecting overall profitability.

Impact of Increased Tariffs

Higher tariffs increase supply chain costs, pressuring margins and potentially impacting competitive pricing and profitability.

Overall Revenue Decline

The decline in overall revenue suggests challenges in growth momentum, which could impact long-term financial performance and market share.

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 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 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: Neutral
• Last Price: 41.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 41.18 is below the 20-day moving average (MA) of 41.95, above the 50-day MA of 39.73, and below the 200-day MA of 43.01, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WHD.

Cactus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VAL	77 Outperform	$3.77B	9.66	17.49%	―	6.81%	-61.94%
OII	73 Outperform	$2.41B	10.56	28.92%	―	8.71%	72.09%
WFRD	72 Outperform	$5.26B	13.24	27.88%	1.36%	-10.19%	-23.74%
NOV	72 Outperform	$5.45B	14.93	5.93%	3.55%	-1.43%	-63.13%
WHD	71 Outperform	$3.29B	16.37	15.77%	1.25%	-3.76%	-11.00%
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, Inc. Reports Stable Q3 2025 Earnings

Cactus, Inc. is a company that designs, manufactures, and rents pressure control and spoolable pipe technologies primarily for the oil and gas industry, with operations across North America, Australia, and select international markets. In its third quarter of 2025, Cactus, Inc. reported revenues of $264.0 million and an operating income of $61.2 million, with a net income of $50.2 million. The company also declared a quarterly dividend of $0.14 per Class A share. The company maintained a strong cash position with $445.6 million in cash and no outstanding bank debt.

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.