Cactus (WHD) AI Stock Analysis

• Market Cap: $3.15B
• Dividend Yield: 1.32%
• Average Volume (3M): 603.73K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.12
• Revenue Growth: -0.71%
• EPS Growth: -7.89%
• Country: US
• Employees: 1,600
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.66
• Shares Outstanding: 68,574,875
• 10 Day Avg. Volume: 914,797
• 30 Day Avg. Volume: 603,727
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 13.12
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $49.75
• Price Target Upside: 25.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $44.00 ▲(11.36% Upside)

Cactus exhibits strong financial performance and strategic growth initiatives, which are major positives. However, current technical indicators suggest bearish momentum, and valuation metrics show a fair market price. The mixed earnings call sentiment and strategic acquisitions provide a balanced outlook, resulting in a moderate overall score.

Positive Factors

Financial Performance

The company's shares have increased by 5.4% since the better-than-expected quarterly results and the implementation of a tariff mitigation strategy.

Market Expansion

Share gains in the US, international market penetration and strong FCF make this small cap name worth putting on your radar screen.

Revenue Growth

Revenue will outperform the market, driven by continued market share gains and new product introductions.

Negative Factors

Earnings Performance

4Q24 Revenue and EBITDA came in below consensus.

Revenue Decline

Pressure Control revenue is expected to decline in the low-to-mid single digits, with margins at the lower end of the guidance range.

Tariff Risks

Tariffs will present supply chain challenges. Costs will increase on imports from its China facility.

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 exhibits a strong financial position with robust revenue and profit growth, underpinned by effective cost management and operational efficiency. The balance sheet is solid, with low leverage and a strong equity base. The cash flow statement reinforces the company's capability to generate and manage cash effectively, supporting its strategic initiatives and growth.

Income Statement

Cactus has demonstrated strong revenue growth over the years, with the latest TTM revenue at $1.136 billion, up from $688 million in 2022. Gross profit margins have been consistently healthy, reaching 42.8% in the TTM period. The net profit margin of 16.8% is robust for the industry, indicating effective cost management. The EBIT and EBITDA margins also show solid profitability, at 26.3% and 30.8% respectively. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

Cactus maintains a strong balance sheet with a low debt-to-equity ratio of 0.04, indicating a conservative use of leverage. The equity ratio stands at 62.6%, reflecting a solid equity base relative to assets. However, return on equity is modest at 17.2%, suggesting room for improvement in generating returns on shareholders' equity. Overall, the balance sheet shows financial stability with minimal leverage risks.

Cash Flow

The company has shown a favorable cash flow position, with free cash flow showing steady growth and reaching $240 million in the TTM period. The operating cash flow to net income ratio of 1.42 indicates strong cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.26, demonstrating efficient cash utilization. Overall, the cash flow statement highlights effective cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.13B	1.10B	688.37M	438.59M	348.57M
Gross Profit	217.19M	436.39M	406.29M	242.45M	121.45M	111.62M
EBITDA	347.55M	363.54M	337.66M	217.27M	111.73M	112.42M
Net Income	181.17M	185.41M	169.17M	110.17M	67.47M	59.22M
Balance Sheet
Total Assets	1.82B	1.74B	1.52B	1.12B	982.08M	815.59M
Cash, Cash Equivalents and Short-Term Investments	405.18M	342.84M	133.79M	344.53M	301.67M	288.66M
Total Debt	42.02M	41.72M	39.97M	35.52M	33.21M	28.13M
Total Liabilities	475.99M	475.15M	457.79M	408.45M	387.05M	264.82M
Stockholders Equity	1.35B	1.07B	865.52M	710.45M	595.03M	550.77M
Cash Flow
Free Cash Flow	244.24M	276.94M	296.30M	89.59M	49.82M	118.89M
Operating Cash Flow	276.27M	316.11M	340.28M	117.88M	63.76M	143.38M
Investing Cash Flow	-47.84M	-35.39M	-654.79M	-25.54M	-11.63M	-18.15M
Financing Cash Flow	-69.50M	-70.14M	103.28M	-47.38M	-39.39M	-40.21M

Cactus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHD, the sentiment is Negative. The current price of 39.51 is below the 20-day moving average (MA) of 42.97, below the 50-day MA of 44.14, and below the 200-day MA of 51.11, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 30.45 is Neutral, neither overbought nor oversold. The STOCH value of 2.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHD.

Cactus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFRD	78 Outperform	$4.07B	8.72	35.14%	1.76%	-5.35%	-4.15%
KGS	76 Outperform	$3.04B	39.00	6.16%	4.96%	31.01%	39.51%
LBRT	75 Outperform	$1.85B	8.76	10.92%	2.72%	-9.32%	-48.26%
WHD	73 Outperform	$3.15B	14.88	17.23%	1.32%	-0.71%	-7.89%
AROC	73 Outperform	$4.12B	17.76	19.85%	3.19%	28.22%	49.17%
USAC	66 Neutral	$2.99B	36.71	314.74%	8.62%	8.22%	28.05%
Sector *	56 Neutral	C$4.17B	2.50	16.25%	5.59%	6.33%	-50.37%

Cactus Corporate Events

Cactus to Acquire Baker Hughes Surface Business

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 merger with FlexSteel business on February 28, 2023, and has entered into an agreement to acquire Baker Hughes Company’s surface pressure control business. These strategic moves are expected to strengthen Cactus’s market position and operational capabilities, potentially impacting stakeholders positively by enhancing its product offerings and market reach.

The most recent analyst rating on (WHD) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Acquires Stake in Baker Hughes Business

On June 2, 2025, Cactus Companies, a subsidiary of Cactus, Inc., entered into a Framework Agreement to acquire 65% of Baker Hughes Company’s surface pressure control business for $344.5 million. The transaction involves restructuring and conversion of Baker Hughes Pressure Control to a Delaware LLC, with closing expected in the second half of 2025. This strategic acquisition aims to enhance Cactus’s industry positioning by expanding its capabilities in surface pressure control, potentially impacting stakeholders through increased market share and operational synergies.

The most recent analyst rating on (WHD) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.

Cactus Inc. Holds Annual Stockholders Meeting

On May 13, 2025, Cactus, Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders elected three Class II directors to serve until the 2026 annual meeting, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved an amendment to the Long-Term Incentive Plan to increase the number of shares of Class A common stock. Additionally, the stockholders approved the compensation of the company’s named executive officers and decided to hold advisory votes on this compensation annually.

The most recent analyst rating on (WHD) stock is a Hold with a $61.00 price target. To see the full list of analyst forecasts on Cactus stock, see the WHD Stock Forecast page.