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Cactus, Inc. (WHD)
:WHD
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Cactus
(NYSE:WHD)65Neutral
Positive Factors
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
Supply Chain Challenges
Tariffs will present supply chain challenges. Costs will increase on imports from its China facility.
Cactus (WHD) vs. S&P 500 (SPY)
Market Cap
$3.73B
Dividend Yield1.07%
Average Volume (3M)603.81K
Price to Earnings (P/E)16.9
Beta (1Y)1.22
Revenue Growth3.00%
EPS Growth6.72%
CountryUS
Employees1,600
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)2.77
Shares Outstanding68,151,540
10 Day Avg. Volume926,716
30 Day Avg. Volume603,814
Financial Highlights & Ratios
PEG Ratio2.51
Price to Book (P/B)N/A
Price to Sales (P/S)3.30
Price to Cash Flow (P/CF)14.00
P/FCF Ratio13.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$57.00Price Target Upside21.59% Upside
Rating ConsensusHold
Number of Analyst Covering6
Cactus Business Overview & Revenue Model
Company Descriptionnull
How the Company Makes Moneynull
Cactus Financial Statement Overview
Summary
Cactus shows strong financial health, with impressive revenue growth and profitability, a stable balance sheet, and robust cash flow generation. The company is well-positioned for future growth in the fossil fuels industry.Income Statement
Cactus has demonstrated consistent revenue growth, with a notable increase from $688 million in 2022 to $1.13 billion in 2024. The gross profit margin remains robust at 100% in 2024, indicating excellent cost management. The net profit margin improved to 16.41%, reflecting strong profitability. Both EBIT and EBITDA margins are solid, showing efficient operations. Overall, the income statement highlights strong growth and profitability, positioning the company well in the fossil fuels industry.88
Very Positive
Balance Sheet
Cactus maintains a healthy balance sheet with a low debt-to-equity ratio of 0.04, indicative of conservative leverage. The equity ratio is strong at 61.58%, suggesting a solid capital structure. The return on equity has been improving, reaching 17.31% in 2024, pointing to effective use of equity capital. The balance sheet reflects stability and low financial risk, supporting the company's growth trajectory.85
Very Positive
Cash Flow
The company has shown strong free cash flow generation, with a steady increase in free cash flow from $89 million in 2022 to $316 million in 2024. The operating cash flow to net income ratio is healthy, reinforcing the quality of earnings. However, the free cash flow growth rate has been moderate. Overall, the cash flow statement indicates solid cash generation and efficient capital management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.13B | 1.10B | 688.37M | 438.59M | 348.57M | Gross Profit |
| 436.39M | 406.29M | 242.45M | 121.45M | 111.62M | EBIT |
| 289.61M | 264.37M | 174.75M | 75.43M | 70.04M | EBITDA |
| 361.99M | 337.66M | 217.27M | 111.73M | 112.42M | Net Income Common Stockholders |
| 185.41M | 169.17M | 110.17M | 67.47M | 59.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 342.84M | 133.79M | 344.53M | 301.67M | 288.66M | Total Assets |
| 1.74B | 1.52B | 1.12B | 982.08M | 815.59M | Total Debt |
| 41.72M | 39.97M | 35.52M | 33.21M | 28.13M | Net Debt |
| -301.13M | -93.82M | -309.01M | -268.46M | -260.53M | Total Liabilities |
| 475.15M | 457.79M | 408.45M | 387.05M | 264.82M | Stockholders Equity |
| 1.07B | 865.52M | 710.45M | 595.03M | 550.77M |
| Cash Flow | Free Cash Flow | |||
| 316.11M | 296.30M | 89.59M | 49.82M | 118.89M | Operating Cash Flow |
| 316.11M | 340.28M | 117.88M | 63.76M | 143.38M | Investing Cash Flow |
| -35.39M | -654.79M | -25.54M | -11.63M | -18.15M | Financing Cash Flow |
| -70.14M | 103.28M | -47.38M | -39.39M | -40.21M |
Cactus Technical Analysis
Negative
46.88
Price Trends
58.53
Negative
60.85
Negative
58.48
Negative
Market Momentum
-3.43
Positive
20.40
Positive
8.75
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 46.88 is below the 20-day moving average (MA) of 55.77, below the 50-day MA of 58.53, and below the 200-day MA of 58.48, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 20.40 is Positive, neither overbought nor oversold. The STOCH value of 8.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHD.
Cactus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.43B | 8.89 | 10.12% | 1.93% | 3.42% | -35.98% | |
72 Outperform | $53.62B | 12.69 | 21.59% | 2.81% | 9.58% | 6.53% | |
67 Neutral | $22.20B | 10.34 | 12.18% | 3.59% | -15.77% | -45.76% | |
65 Neutral | $3.73B | 16.90 | 19.15% | 1.07% | 3.00% | 6.72% | |
65 Neutral | $1.98B | 13.34 | 21.97% | ― | 9.75% | 50.93% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
57 Neutral | $216.48M | ― | -36.95% | ― | 10.50% | -493.15% |
* Energy Sector Average
Performance Comparison
WHD
Cactus
47.37
1.25
2.71%
FET
Forum Energy Tech
17.26
-1.69
-8.92%
NOV
NOV
14.96
-2.42
-13.92%
OII
Oceaneering International
19.95
-0.62
-3.01%
SLB
Schlumberger
41.37
-7.73
-15.74%
TS
Tenaris SA
37.23
0.86
2.36%
Cactus Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -17.83% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Cactus, Inc. reported several positive achievements, including a record revenue year for 2024 and a strong cash position. However, challenges such as revenue declines in Q4, tariff impacts, and sequential revenue drops in key segments were also noted. The sentiment is balanced with both noteworthy achievements and significant challenges.Highlights
Record Revenue Year for 2024
Cactus, Inc. achieved a record revenue year in 2024, with both segments outperforming lower average industry activity levels year over year.
Strong Cash Position
The company ended the year with a cash balance of $343 million, a quarterly increase of approximately $39 million.
Dividend Payment
Cactus, Inc. paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $10 million.
Vietnam Production Facility Progress
The new low-cost production facility is located in Vietnam, with first orders placed and modest shipments expected to begin in the second quarter.
Growth in Spoolable Technology Segment
The spoolable technology segment experienced record revenue growth in 2024, including international orders driving a sequential increase in Q1.
Lowlights
Revenue Decline in Q4
Total Q4 revenues were $272 million, down 7.2% sequentially, with adjusted EBITDA also down 7.6% sequentially.
Pressure Control Segment Challenges
Revenue for the pressure control segment decreased by 4.5% sequentially due to decreased customer activity and reduced shipments of production equipment.
Impact of Tariffs on Cost Structure
New tariffs on goods imported from China are expected to impact the cost profile, with challenges in quantifying the full impact as details remain fluid.
Spoolable Technology Segment Revenue Decline
Revenues for the spoolable technology segment were down 11.2% sequentially due to lower customer activity levels.
Company Guidance
During the Cactus, Inc. Q4 2024 earnings call, the management team provided detailed guidance on their financial performance and future outlook. For Q4 2024, the company reported total revenues of $272 million, down 7.2% sequentially, with adjusted EBITDA at $93 million, reflecting a margin of 34.1%. The pressure control segment generated $177 million in revenue, which was a 4.5% sequential decline, while the spoolable technology segment revenue decreased by 11.2% to $96 million. For Q1 2025, the company expects pressure control revenue to be flat or slightly up, with adjusted EBITDA margins projected between 33% to 35%, excluding a $3 million stock-based compensation expense. Meanwhile, spoolable technology segment revenue is expected to decline mid to high single digits due to seasonality, with anticipated EBITDA margins of 35% to 37%. Cactus, Inc. has expressed optimism about international growth opportunities, especially in the Middle East, and remains focused on expanding their Vietnam production facility to mitigate the impacts of new tariffs. Estimated 2025 CapEx is forecasted to be between $45 million to $55 million, and the company plans to pay a quarterly dividend of $0.13 per share in March.Cactus Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Cactus Highlights Strategic Growth at Investor Meetings
Positive
Nov 12, 2024
Cactus, Inc. is set to engage with investors at upcoming meetings, sharing presentations that highlight key financial metrics and recent strategic moves, including the merger with FlexSteel. Their investor materials showcase non-GAAP financial measures and forward-looking statements, aimed at demonstrating Cactus’s innovative products and market resilience. By focusing on enhanced drilling efficiencies and strong financial performance, Cactus positions itself as a leader in onshore equipment solutions, appealing to those keen on high-margin opportunities and dynamic market strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.