CACTUS INC - A (WHD) Stock Fundamental Analysis
NYSE:WHD - New York Stock Exchange, Inc. - US1272031071 - Common Stock - Currency: USD
Overall WHD gets a fundamental rating of 6 out of 10. We evaluated WHD against 61 industry peers in the Energy Equipment & Services industry. WHD gets an excellent profitability rating and is at the same time showing great financial health properties. WHD has a correct valuation and a medium growth rate. These ratings would make WHD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WHD was profitable.
In the past year WHD had a positive cash flow from operations.
WHD had positive earnings in each of the past 5 years.
Each year in the past 5 years WHD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.93%, WHD belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
WHD has a Return On Equity of 13.43%. This is in the better half of the industry: WHD outperforms 75.41% of its industry peers.
The Return On Invested Capital of WHD (13.43%) is better than 86.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WHD is significantly above the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.93% | ||
| ROE | 13.43% | ||
| ROIC | 13.43% |
ROA(3y)10.54%
ROA(5y)8.18%
ROE(3y)18.71%
ROE(5y)15.29%
ROIC(3y)14.8%
ROIC(5y)11.73%
1.3 Margins
WHD has a Profit Margin of 16.19%. This is amongst the best in the industry. WHD outperforms 91.80% of its industry peers.
In the last couple of years the Profit Margin of WHD has grown nicely.
With an excellent Operating Margin value of 24.72%, WHD belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
WHD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.19%, WHD belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
In the last couple of years the Gross Margin of WHD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.72% | ||
| PM (TTM) | 16.19% | ||
| GM | 47.19% |
OM growth 3Y14.24%
OM growth 5Y-2.54%
PM growth 3Y13.21%
PM growth 5Y3.79%
GM growth 3Y11.75%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
WHD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WHD has been increased compared to 1 year ago.
The number of shares outstanding for WHD has been increased compared to 5 years ago.
The debt/assets ratio for WHD has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WHD is 0.08, which is an excellent value as it means it would take WHD, only 0.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WHD (0.08) is better than 98.36% of its industry peers.
WHD has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.01, WHD belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | N/A |
ROIC/WACC1.51
WACC8.88%
2.3 Liquidity
WHD has a Current Ratio of 4.85. This indicates that WHD is financially healthy and has no problem in meeting its short term obligations.
WHD has a Current ratio of 4.85. This is amongst the best in the industry. WHD outperforms 95.08% of its industry peers.
A Quick Ratio of 3.48 indicates that WHD has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.48, WHD belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
The earnings per share for WHD have decreased by -8.25% in the last year.
WHD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.32% yearly.
The Revenue has decreased by -0.72% in the past year.
Measured over the past years, WHD shows a quite strong growth in Revenue. The Revenue has been growing by 12.45% on average per year.
EPS 1Y (TTM)-8.25%
EPS 3Y62.38%
EPS 5Y10.32%
EPS Q2Q%-16.46%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%-6.69%
3.2 Future
The Earnings Per Share is expected to grow by 8.97% on average over the next years. This is quite good.
Based on estimates for the next years, WHD will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y-9.39%
EPS Next 2Y1.03%
EPS Next 3Y8.97%
EPS Next 5YN/A
Revenue Next Year0.09%
Revenue Next 2Y7.4%
Revenue Next 3Y8.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.99 indicates a correct valuation of WHD.
Based on the Price/Earnings ratio, WHD is valued a bit cheaper than 60.66% of the companies in the same industry.
WHD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 13.03, WHD is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WHD.
The average S&P500 Price/Forward Earnings ratio is at 36.28. WHD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WHD is valued a bit more expensive than 72.13% of the companies in the same industry.
WHD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.9 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The excellent profitability rating of WHD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y1.03%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
WHD has a Yearly Dividend Yield of 1.41%.
Compared to an average industry Dividend Yield of 3.91, WHD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of WHD grows each year by 38.52%, which is quite nice.
WHD has been paying a dividend for over 5 years, so it has already some track record.
As WHD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)38.52%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
19.71% of the earnings are spent on dividend by WHD. This is a low number and sustainable payout ratio.
WHD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.71%
EPS Next 2Y1.03%
EPS Next 3Y8.97%
40.44
+0.6 (+1.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners109.4%
Inst Owner Change0.83%
Ins Owners0.91%
Ins Owner Change-0.19%
Market Cap3.23B
Analysts75
Price Target51.17 (26.53%)
Short Float %4.37%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.5
Dividend Growth(5Y)38.52%
DP19.71%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-9.2%
Max EPS beat(2)7.32%
EPS beat(4)2
Avg EPS beat(4)0.44%
Min EPS beat(4)-9.2%
Max EPS beat(4)7.32%
EPS beat(8)5
Avg EPS beat(8)2.63%
EPS beat(12)9
Avg EPS beat(12)5.46%
EPS beat(16)12
Avg EPS beat(16)6.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)2.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.07%
Revenue beat(8)5
Avg Revenue beat(8)-0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.51%
Revenue beat(16)11
Avg Revenue beat(16)1.06%
PT rev (1m)-0.33%
PT rev (3m)-4.83%
EPS NQ rev (1m)-3.74%
EPS NQ rev (3m)-17.26%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-2.69%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-4.43%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.03 | ||
| P/S | 2.88 | ||
| P/FCF | 13.9 | ||
| P/OCF | 11.69 | ||
| P/B | 2.39 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)2.89
EY7.15%
EPS(NY)3.1
Fwd EY7.67%
FCF(TTM)2.91
FCFY7.2%
OCF(TTM)3.46
OCFY8.56%
SpS14.02
BVpS16.89
TBVpS12.4
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.93% | ||
| ROE | 13.43% | ||
| ROCE | 16.82% | ||
| ROIC | 13.43% | ||
| ROICexc | 17.82% | ||
| ROICexgc | 25.09% | ||
| OM | 24.72% | ||
| PM (TTM) | 16.19% | ||
| GM | 47.19% | ||
| FCFM | 20.76% |
ROA(3y)10.54%
ROA(5y)8.18%
ROE(3y)18.71%
ROE(5y)15.29%
ROIC(3y)14.8%
ROIC(5y)11.73%
ROICexc(3y)19.19%
ROICexc(5y)15.97%
ROICexgc(3y)24.69%
ROICexgc(5y)19.33%
ROCE(3y)18.54%
ROCE(5y)14.69%
ROICexcg growth 3Y37.84%
ROICexcg growth 5Y-0.17%
ROICexc growth 3Y22.85%
ROICexc growth 5Y-6.81%
OM growth 3Y14.24%
OM growth 5Y-2.54%
PM growth 3Y13.21%
PM growth 5Y3.79%
GM growth 3Y11.75%
GM growth 5Y0.67%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 70.98% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.59% | ||
| Profit Quality | 128.23% | ||
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.48 | ||
| Altman-Z | N/A |
F-Score6
WACC8.88%
ROIC/WACC1.51
Cap/Depr(3y)71.81%
Cap/Depr(5y)62.84%
Cap/Sales(3y)3.86%
Cap/Sales(5y)4.36%
Profit Quality(3y)135.28%
Profit Quality(5y)170.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.25%
EPS 3Y62.38%
EPS 5Y10.32%
EPS Q2Q%-16.46%
EPS Next Y-9.39%
EPS Next 2Y1.03%
EPS Next 3Y8.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%-6.69%
Revenue Next Year0.09%
Revenue Next 2Y7.4%
Revenue Next 3Y8.41%
Revenue Next 5YN/A
EBIT growth 1Y-10.33%
EBIT growth 3Y56.61%
EBIT growth 5Y9.59%
EBIT Next Year15.06%
EBIT Next 3Y8.95%
EBIT Next 5YN/A
FCF growth 1Y16.15%
FCF growth 3Y77.05%
FCF growth 5Y13.06%
OCF growth 1Y15.98%
OCF growth 3Y70.48%
OCF growth 5Y8.57%