Cactus, Inc. (WHD)
NYSE:WHD
Want to see WHD full AI Analyst Report?
Top Page
Cactus
(NYSE:WHD)
Select Model
Select Model
Rating:70Outperform
Price Target:
$64.00
▲(21.49% Upside)
Action:Reiterated
Date:06/03/26
WHD scores as moderately attractive, led by strong balance-sheet strength and solid free-cash-flow generation. The main offsets are a sharp recent drop in net profitability/cash conversion, mixed (not strong) technical momentum, and a high P/E that makes the stock less forgiving if margin and geopolitical/tariff headwinds persist.
Positive Factors
Conservative balance sheet
Extremely low leverage provides durable financial flexibility through oilfield cycles, enabling the firm to fund capex, acquisitions, dividends or weather downturns without constraining operations. This long-term strength reduces refinancing and liquidity risk and supports strategic optionality.
Negative Factors
Sharp net margin decline
A material drop in net margin and sub‑1.0 operating cash conversion suggest below‑the‑line charges, working capital strain or nonrecurring items are materially eroding earnings quality. If persistent, this undermines sustainable profitability and cash available for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage provides durable financial flexibility through oilfield cycles, enabling the firm to fund capex, acquisitions, dividends or weather downturns without constraining operations. This long-term strength reduces refinancing and liquidity risk and supports strategic optionality.
Read all positive factors
Cactus (WHD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend Yield1.16%
Average Volume (3M)687.36K
Price to Earnings (P/E)51.6
Beta (1Y)1.25
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. Volume586,160
30 Day Avg. Volume687,358
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 Cap0.84
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit5.56
Enterprise Value/Ebitda11.41
Forecast
1Y Price Target
$66.80Price Target Upside26.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.74
Revenue Forecast (FY)$1.59B
Cactus Business Overview & Revenue Model
Company Description
Cactus, Inc. specializes in the engineering, fabrication, distribution, and leasing of critical subsurface pressure management and wellhead apparatus. The company operates across key international markets such as the United States, Australia, Chin...
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The quarter shows meaningful top-line growth and operational momentum driven by the Cactus International acquisition and record international performance in Spoolable Technologies, alongside improved adjusted earnings and a strengthened synergy target. However, significant margin compression, acquisition-related noncash charges, tariff burdens, Middle East conflict-related disruptions and working capital frictions temper the results. The company provided constructive near-term guidance for revenues and segment margins while warning of continued short-term headwinds tied to geopolitics and purchase accounting effects.Positive Updates
Total Company Revenue and Adjusted EBITDA
Q1 revenue of $388 million and adjusted EBITDA of $100 million; adjusted EBITDA margin of 25.8% (Q1 2026). Adjusted EBITDA was up $14.6 million sequentially versus Q4, driven largely by contribution from Cactus International.
Negative Updates
Compression in Company Margins
Total adjusted EBITDA margin declined to 25.8% from 32.7% in Q4 (a ~690 basis point decrease). Pressure Control adjusted segment margins decreased by approximately 930 basis points sequentially.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Company Revenue and Adjusted EBITDA
Q1 revenue of $388 million and adjusted EBITDA of $100 million; adjusted EBITDA margin of 25.8% (Q1 2026). Adjusted EBITDA was up $14.6 million sequentially versus Q4, driven largely by contribution from Cactus International.
Read all positive updates
Company Guidance
The company reiterated a near‑term outlook with many concrete metrics: Q1 reported revenue was $388M with adjusted EBITDA of $100M (25.8% margin), GAAP net income of $40M and adjusted net income of $56M ($0.70/sh), cash of $292M, a $0.14 quarterly dividend (≈$12M cash outflow) and remaining performance obligations/backlog of $537M; Q2 guidance calls for Pressure Control revenue roughly flat vs. Q1 with adjusted EBITDA margins of 22–24% (excludes ~ $5M of stock‑based comp and Cactus inventory amortization, which management said should end after Q2), Spoolable Technologies revenues up mid‑single digits with adjusted EBITDA margins ~36–38% (excludes stock‑based comp), adjusted corporate EBITDA expense ≈$5M (excl. ~$2M stock‑based comp), an effective tax rate of ~19% (adjusted EPS tax rate ≈22%), total Q2 depreciation & amortization ≈$37M (≈$28M in Pressure Control including ~$10M inventory step‑up amortization and ~$8M intangible amortization; ~$9M in Spoolable), full‑year CapEx of $40–50M, and management raised expected annualized synergies from the Cactus International acquisition to $15M (from $10M).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 | 324.45M | 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
56.77
Negative
54.45
Positive
48.70
Positive
Market Momentum
-0.08
Positive
39.38
Neutral
19.17
Positive
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 58.79, below the 50-day MA of 56.77, and above the 200-day MA of 48.70, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.60B | 10.57 | 34.58% | ― | 2.39% | 88.22% | |
70 Outperform | $4.38B | 51.58 | 6.16% | 1.16% | 4.50% | -62.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $5.44B | 5.41 | 36.16% | ― | -9.95% | 233.69% | |
64 Neutral | $6.59B | 14.23 | 28.39% | 1.25% | -8.81% | >-0.01% | |
58 Neutral | $6.70B | 73.22 | 1.45% | 3.24% | -1.33% | -84.10% |
* Energy Sector Average
WHD
Cactus
54.69
9.73
21.63%
NOV
NOV
18.66
5.22
38.79%
OII
Oceaneering International
36.06
14.72
68.98%
WFRD
Weatherford International
91.63
41.11
81.39%
VAL
Valaris
78.56
33.16
73.04%
Cactus Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Cactus Extends Credit Facility, Enhancing Financial Flexibility
Positive
Jun 2, 2026
On May 29, 2026, Cactus Companies, LLC, a subsidiary of Cactus, Inc., amended its asset-based lending credit facility, extending the maturity of commitments under its undrawn delayed draw term loan from June 1, 2026 to December 31, 2026, with any ...
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.