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Cactus
(NYSE:WHD)
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Rating:70Outperform
Price Target:
$55.00
▲(4.40% Upside)
Action:Reiterated
Date:06/03/26
WHD scores as moderately attractive, led by strong balance-sheet strength and solid free-cash-flow generation. The main offsets are a sharp recent drop in net profitability/cash conversion, mixed (not strong) technical momentum, and a high P/E that makes the stock less forgiving if margin and geopolitical/tariff headwinds persist.
Positive Factors
Very low leverage / strong balance sheet
Extremely low debt-to-equity (~0.05) and a conservative balance sheet give Cactus durable financial flexibility. This supports through-cycle capital allocation — funding capex, M&A integration, dividends or buybacks — and reduces default risk during oilfield demand volatility over the next several months.
Negative Factors
Sharp net margin compression
A marked drop in net margin from mid-teens to ~6% indicates weaker bottom-line conversion despite revenue growth. If underlying noncash purchase-accounting charges, integration costs or elevated operating expenses persist, earnings durability and corporate return metrics may remain constrained over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low debt-to-equity (~0.05) and a conservative balance sheet give Cactus durable financial flexibility. This supports through-cycle capital allocation — funding capex, M&A integration, dividends or buybacks — and reduces default risk during oilfield demand volatility over the next several months.
Read all positive factors
Cactus (WHD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.04B
Dividend Yield1.16%
Average Volume (3M)726.35K
Price to Earnings (P/E)46.8
Beta (1Y)1.24
Revenue Growth4.50%
EPS Growth-62.41%
CountryUS
Employees1,600
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.08
Shares Outstanding69,418,430
10 Day Avg. Volume672,725
30 Day Avg. Volume726,353
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 Cap0.92
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit5.56
Enterprise Value/Ebitda11.41
Forecast
1Y Price Target
$65.00Price Target Upside23.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.72
Revenue Forecast (FY)$1.59B
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:Aug 05, 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 | 1.19B | 1.08B | 1.13B | 1.10B | 688.37M | 438.59M |
| Gross Profit | 666.42M | 589.30M | 436.39M | 406.29M | 242.45M | 121.45M |
| EBITDA | 324.45M | 353.45M | 363.54M | 332.35M | 211.57M | 111.73M |
| Net Income | 73.19M | 166.01M | 185.41M | 169.17M | 110.17M | 49.59M |
Balance Sheet | ||||||
| Total Assets | 2.46B | 1.87B | 1.74B | 1.52B | 1.12B | 982.08M |
| Cash, Cash Equivalents and Short-Term Investments | 291.61M | 494.58M | 342.84M | 133.79M | 344.53M | 301.67M |
| Total Debt | 55.23M | 37.75M | 41.72M | 39.97M | 35.52M | 33.21M |
| Total Liabilities | 811.82M | 438.57M | 475.15M | 457.79M | 408.45M | 387.05M |
| Stockholders Equity | 1.19B | 1.23B | 1.07B | 865.52M | 571.92M | 468.64M |
Cash Flow | ||||||
| Free Cash Flow | 304.44M | 217.21M | 276.94M | 296.30M | 89.59M | 49.82M |
| Operating Cash Flow | 342.74M | 256.02M | 316.11M | 340.28M | 117.88M | 63.76M |
| Investing Cash Flow | -333.60M | -39.06M | -35.39M | -654.79M | -25.54M | -11.63M |
| Financing Cash Flow | -66.40M | -66.66M | -70.14M | 103.28M | -47.38M | -39.39M |
Cactus Technical Analysis
Negative
52.68
Price Trends
56.47
Negative
54.01
Negative
49.17
Positive
Market Momentum
-2.03
Positive
38.99
Neutral
15.74
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 52.68 is below the 20-day moving average (MA) of 54.96, below the 50-day MA of 56.47, and above the 200-day MA of 49.17, indicating a neutral trend. The MACD of -2.03 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 15.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHD.
Cactus Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.84B | 11.54 | 34.58% | ― | 2.39% | 88.22% | |
70 Outperform | $4.04B | 46.75 | 6.16% | 1.16% | 4.50% | -62.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $5.97B | 13.05 | 28.39% | 1.25% | -8.81% | >-0.01% | |
63 Neutral | $5.22B | 5.12 | 36.16% | ― | -9.95% | 233.69% | |
58 Neutral | $6.47B | 74.13 | 1.45% | 3.24% | -1.33% | -84.10% |
* Energy Sector Average
WHD
Cactus
50.49
7.11
16.38%
NOV
NOV
17.79
5.36
43.13%
OII
Oceaneering International
38.88
18.02
86.39%
WFRD
Weatherford International
83.90
31.65
60.56%
VAL
Valaris
73.53
26.84
57.49%
Cactus Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Cactus Extends Credit Facility, Enhancing Financial Flexibility
Positive
Jun 2, 2026
On May 29, 2026, Cactus Companies, LLC, a subsidiary of Cactus, Inc., amended its asset-based lending credit facility, extending the maturity of commitments under its undrawn delayed draw term loan from June 1, 2026 to December 31, 2026, with any ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Cactus Announces Leadership Changes and Board Election Results
Positive
May 12, 2026
On May 12, 2026, Cactus, Inc. appointed Steven Bender as Chief Operating Officer and Chief Executive Officer of its Spoolable Technologies Segment, while Stephen Tadlock stepped back from that segment CEO role but remained Executive Vice President...
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.