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Cactus
(NYSE:WHD)
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Rating:73Outperform
Price Target:
$78.00
â–²(16.12% Upside)
Action:Reiterated
Date:09/09/26
The score is primarily driven by strong financial resilience (low leverage, solid growth, and strong free cash flow) and a constructive technical trend. These positives are meaningfully offset by elevated valuation (high P/E and low yield) and the recent compression in net margin and ROE, which raises questions about the current earnings baseline.
Positive Factors
Revenue Growth and Margins
Cactus is sustaining meaningful revenue growth while retaining strong gross and operating margins. This combination indicates continued demand for its equipment and services, supports internal funding of operations, and provides a durable earnings base if market activity remains constructive.
Negative Factors
Net Margin Compression
The sharp decline in net margin weakens the quality and durability of recent earnings growth. Even with healthy gross and operating margins, higher costs, pricing pressure, or below-the-line headwinds could reduce retained profit and limit the benefit of continued revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Margins
Cactus is sustaining meaningful revenue growth while retaining strong gross and operating margins. This combination indicates continued demand for its equipment and services, supports internal funding of operations, and provides a durable earnings base if market activity remains constructive.
Read all positive factors
Cactus (WHD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.63B
Dividend Yield0.82%
Average Volume (3M)811.46K
Price to Earnings (P/E)58.4
Beta (1Y)1.35
Revenue Growth21.79%
EPS Growth-55.76%
CountryUS
Employees1,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.19
Shares Outstanding69,733,170
10 Day Avg. Volume733,895
30 Day Avg. Volume811,463
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$69.17Price Target Upside2.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.98
Revenue Forecast (FY)$1.69B
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 mainly by selling and renting wellhead and pressure-control equipment and by providing related field services. A core revenue stream is the sale of wellhead systems and components installed on oil and gas wells during drilling a...
Cactus Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 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 | 1.36B | 1.08B | 1.13B | 1.10B | 688.37M | 438.59M |
| Gross Profit | 965.89M | 589.30M | 436.39M | 406.29M | 242.45M | 121.45M |
| EBITDA | 366.40M | 353.45M | 363.54M | 332.35M | 211.57M | 111.73M |
| Net Income | 81.86M | 166.01M | 185.41M | 169.17M | 110.17M | 49.59M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 1.87B | 1.74B | 1.52B | 1.12B | 982.08M |
| Cash, Cash Equivalents and Short-Term Investments | 365.82M | 494.58M | 342.84M | 133.79M | 344.53M | 301.67M |
| Total Debt | 56.22M | 37.75M | 41.72M | 39.97M | 35.52M | 33.21M |
| Total Liabilities | 881.52M | 438.57M | 475.15M | 457.79M | 408.45M | 387.05M |
| Stockholders Equity | 1.24B | 1.23B | 1.07B | 865.52M | 571.92M | 468.64M |
Cash Flow | ||||||
| Free Cash Flow | 321.56M | 217.21M | 276.94M | 296.30M | 89.59M | 49.82M |
| Operating Cash Flow | 364.47M | 256.02M | 316.11M | 340.28M | 117.88M | 63.76M |
| Investing Cash Flow | -338.14M | -39.06M | -35.39M | -654.79M | -25.54M | -11.63M |
| Financing Cash Flow | -66.28M | -66.66M | -70.14M | 103.28M | -47.38M | -39.39M |
Cactus Technical Analysis
Positive
67.17
Price Trends
62.09
Positive
59.34
Positive
54.56
Positive
Market Momentum
1.93
Positive
55.25
Neutral
68.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHD, the sentiment is Positive. The current price of 67.17 is below the 20-day moving average (MA) of 70.52, above the 50-day MA of 62.09, and above the 200-day MA of 54.56, indicating a neutral trend. The MACD of 1.93 indicates Positive momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHD.
Cactus Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.12B | 14.56 | 32.92% | 2.69% | 3.84% | 75.32% | |
74 Outperform | $6.97B | 18.37 | 21.52% | 1.15% | -7.17% | -22.96% | |
73 Outperform | $5.63B | 58.42 | 6.75% | 0.82% | 21.79% | -55.76% | |
67 Neutral | $6.02B | 6.35 | 31.33% | 0.68% | -13.22% | 249.28% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $7.63B | 82.27 | 1.53% | 2.04% | -1.63% | -78.44% |
* Energy Sector Average
WHD
Cactus
69.52
29.06
71.85%
NOV
NOV
21.39
8.65
67.87%
OII
Oceaneering International
50.68
26.80
112.23%
WFRD
Weatherford International
93.70
32.51
53.13%
VAL
Valaris
85.51
34.32
67.04%
Cactus Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Cactus unveils September 2026 strategic investor presentation
Positive
Sep 8, 2026
Cactus, Inc. has released a September 2026 investor presentation ahead of upcoming meetings with investors, outlining its financial performance, business segments and strategic positioning. The materials emphasize strong adjusted EBITDA margins, r...
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.