Cactus (WHD) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 1.16%
• Average Volume (3M): 989.77K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.28
• 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): 0.65
• Shares Outstanding: 68,899,840
• 10 Day Avg. Volume: 1,134,073
• 30 Day Avg. Volume: 989,769
• PEG Ratio: -1.42
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 14.42
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 6.25
• 1Y Price Target: $60.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.03
• Revenue Forecast (FY): $1.45B

• Rating: 69 Neutral
• Price Target: $56.00 ▲(3.70% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is supported primarily by strong financial quality—low leverage and consistently positive cash generation. It is tempered by weaker near-term technical setup (below short-term moving averages) and earnings-call risks pointing to near-term margin dilution and softer orders/backlog at the acquired business, while valuation metrics (P/E and low dividend yield) do not provide a strong offset.

Positive Factors

Balance sheet strength

Extremely low leverage and a growing equity base provide durable financial flexibility. With debt-to-equity near 0.03, Cactus can fund capex, dividends and acquisitions with limited refinancing risk, withstand oil-cycle swings and preserve investment capacity over multiple years.

Consistent cash generation

Reliable operating and free cash flow with strong conversion ratios supports sustainable capital allocation. Consistent FCF funds maintenance and growth capex, dividends and integration spending, reducing reliance on external debt and enabling resilient operations across industry cycles.

Transformational acquisition and scale

Acquiring a controlling stake in Baker Hughes’ surface pressure control business materially expands geographic footprint and installed base. Targeted synergies and supply‑chain scale should lower input costs and broaden international revenue streams, strengthening competitive position over the medium term.

Negative Factors

Order slowdown at acquired business

A meaningful backlog contraction at Cactus International reduces revenue visibility and delays expected cash flow from the acquisition. Prolonged order softness raises the risk that acquisition payback and projected synergies take longer, pressuring margins and returns in 2026–2027.

Near-term margin dilution and integration costs

Purchase accounting, higher D&A and inventory amortization alongside transaction and integration expenses create structural near‑term margin headwinds. If synergy realization is slower than planned, these items can permanently depress reported margins and compress returns on the enlarged business.

Cooling revenue trend and 2025 data risk

Top-line cooling into 2025 combined with implausible 2025 margin reporting undermines clarity on sustainable earnings power. Data‑quality or one‑time classification issues reduce forecasting confidence and complicate assessment of durable profitability and margin trends over the next 2–6 months.

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 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

Strong balance sheet (very low leverage, growing equity base) and consistently positive operating/free cash flow support a solid financial profile. Offsetting factors are cooling/negative top-line trajectory into 2025 and reduced confidence in the latest-year income statement due to implausible margin presentation.

Income Statement

Revenue expanded strongly from 2021–2024 (with a step-up in 2022–2023), but growth cooled in 2024 and appears to decline in 2025. Profitability is generally solid for the period (net margin mostly in the mid-teens and EBIT/EBITDA margins healthy in 2021–2024), supporting consistent earnings power. A key weakness is the 2025 annual set showing implausible margin structure (e.g., gross margin at 0% and EBIT/EBITDA margins at 100%), which raises data-quality/one-time classification risk and reduces confidence in the latest-year trend.

Balance Sheet

The balance sheet looks conservatively financed: total debt remains low and leverage is minimal (debt-to-equity consistently well below 0.10, improving to ~0.03 in the latest year). Equity and assets have grown meaningfully over time, indicating a strengthening capital base. Returns on equity were strong in 2022–2024 (roughly high-teens), though the lack of a 2025 return metric limits visibility into the most recent profitability on capital.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive, and free cash flow has generally tracked net income well (free cash flow to net income ~0.76–0.88 across years). Cash conversion improved materially after 2021 (when operating cash flow was below net income), with operating cash flow covering net income comfortably in 2022–2025. The main weakness is volatility in free cash flow growth (declines in 2021 and 2024, sharp rebound in 2023 and again in 2025), suggesting sensitivity to working capital and/or cycle effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.13B	1.10B	688.37M	438.59M
Gross Profit	589.30M	436.39M	406.29M	242.45M	121.45M
EBITDA	1.14B	363.54M	332.35M	211.57M	111.73M
Net Income	166.01M	185.41M	169.17M	110.17M	49.59M
Balance Sheet
Total Assets	1.87B	1.74B	1.52B	1.12B	982.08M
Cash, Cash Equivalents and Short-Term Investments	494.58M	342.84M	133.79M	344.53M	301.67M
Total Debt	37.75M	41.72M	39.97M	35.52M	33.21M
Total Liabilities	438.57M	475.15M	457.79M	408.45M	387.05M
Stockholders Equity	1.43B	1.07B	865.52M	571.92M	468.64M
Cash Flow
Free Cash Flow	217.21M	276.94M	296.30M	89.59M	49.82M
Operating Cash Flow	256.02M	316.11M	340.28M	117.88M	63.76M
Investing Cash Flow	-39.06M	-35.39M	-654.79M	-25.54M	-11.63M
Financing Cash Flow	-66.66M	-70.14M	103.28M	-47.38M	-39.39M

Cactus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.00
• 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 Neutral. The current price of 54 is below the 20-day moving average (MA) of 56.99, above the 50-day MA of 52.82, and above the 200-day MA of 44.63, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 33.87 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
OII	77 Outperform	$3.53B	10.14	39.64%	―	8.71%	72.09%
VAL	75 Outperform	$6.64B	6.85	36.35%	―	6.81%	-61.94%
WHD	69 Neutral	$4.31B	22.45	14.45%	1.16%	-3.76%	-11.00%
WFRD	69 Neutral	$7.56B	17.76	28.89%	1.25%	-10.19%	-23.74%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	62 Neutral	$7.30B	52.39	2.29%	3.24%	-1.43%	-63.13%

Cactus Corporate Events

Cactus Announces Board Transition Amid Strong 2025 Results

On February 22, 2026, Cactus director Melissa Law informed the company she would not stand for re-election at the 2026 annual meeting, with the board now evaluating succession candidates and emphasizing that her decision reflects no disagreements over operations or policies. This board transition comes as Cactus reported fourth-quarter 2025 revenue of $261.2 million, net income of $48.3 million and strong margins, supported by outperformance in its Pressure Control segment and offset by seasonal softness in Spoolable Technologies.

For full year 2025, Cactus generated $1.08 billion of revenue, $201.6 million of net income and healthy cash flow from operations, ending December 31, 2025 with $494.6 million in cash and no bank debt, while incurring acquisition-related costs tied to its FlexSteel and Baker Hughes surface pressure control deals. The January 1, 2026 closing of the majority stake in Baker Hughes’ Surface Pressure Control business, now Cactus International, marks a transformational acquisition that management says will diversify earnings geographically, bolster the Pressure Control segment and position the company for long-term growth despite a flat near-term U.S. land activity outlook and macro headwinds.

The most recent analyst rating on (WHD) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Grants RSUs, Names CEO for New Joint Venture

On December 30, 2025, in connection with the closing of its joint venture with Baker Hughes known as Cactus International, Cactus, Inc. approved a one-time grant of restricted stock units effective January 1, 2026 for key executives Stephen Tadlock, Jay A. Nutt, and Steven Bender, with awards structured to vest ratably over two- and three-year periods and sized between $300,000 and $500,000. The grants, aimed at retaining these identified key leaders, accompanied the appointment of Tadlock—previously Executive Vice President and head of the Spoolable Technologies segment—as Chief Executive Officer of Cactus International, a move that underscores the company’s focus on leadership continuity and management stability as it integrates and scales the new joint venture within its broader operations.

The most recent analyst rating on (WHD) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Completes Transformational Surface Pressure Control Acquisition

On January 2, 2025, Cactus, Inc. completed its previously announced acquisition of a 65% controlling interest in Baker Hughes Company’s Surface Pressure Control business, a move the company described as transformational because it broadens its geographic footprint and opens access to new growth markets while reinforcing its focus on safety, customer execution, margins and returns. In connection with the transaction, the parties entered into an amended and restated LLC Agreement for their joint venture that sets out an exit option for Baker Hughes and Cactus based on a capped valuation tied to the venture’s Adjusted EBITDA, governance provisions requiring supermajority board approval for major actions, restrictions on transfers of membership interests, and mutual non-compete obligations in specified surface pressure control markets, collectively shaping control, valuation and competitive boundaries for the combined business.

The most recent analyst rating on (WHD) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

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.

The most recent analyst rating on (WHD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.