Cactus, Inc. (WHD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Cactus's price-to-book of 3.77 is above the Construction, Mining, and Materials Handling median of 1.38.

Trading above fair value

The share price of $61.47 is above our fair value estimate of $47.74.

Margin of safety under 20%

The price is 28.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 16.2% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew 6.4% over the last twelve months, against a 5-year average of 37.0% a year.

Growing faster than the industry

Revenue grew 40.4% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.

Guidance raised

Cactus raised its full year 2026 capital expenditure range outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 33.5% over the last twelve months, against 37.4% a year earlier.

Return on equity under 15%

Return on equity was 14.7% over the last twelve months and averaged 18.1% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 26.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cactus's return on equity of 14.7% is above the Construction, Mining, and Materials Handling median of 4.5%.

Earnings grew over 5 years

Net income grew 37.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.0% over the last twelve months, against a 5-year average of 14.9%.

Net margin above the industry

Cactus's net margin of 12.0% is above the Construction, Mining, and Materials Handling median of 2.6%.

No debt

Cactus has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 3.06 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.41; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cactus paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cactus yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Covered by earnings

Dividends take 21.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.