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 7 out of 10. We evaluated WHD against 63 industry peers in the Energy Equipment & Services industry. WHD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WHD has a correct valuation and a medium growth rate. With these ratings, WHD could be worth investigating further 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.
Each year in the past 5 years WHD has been profitable.
Each year in the past 5 years WHD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WHD (10.78%) is better than 92.06% of its industry peers.
WHD's Return On Equity of 17.21% is amongst the best of the industry. WHD outperforms 84.13% of its industry peers.
WHD has a Return On Invested Capital of 14.73%. This is amongst the best in the industry. WHD outperforms 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WHD is significantly above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 17.21% | ||
| ROIC | 14.73% |
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 16.78%. This is amongst the best in the industry. WHD outperforms 92.06% of its industry peers.
In the last couple of years the Profit Margin of WHD has grown nicely.
The Operating Margin of WHD (26.03%) is better than 93.65% of its industry peers.
In the last couple of years the Operating Margin of WHD has declined.
With a decent Gross Margin value of 38.63%, WHD is doing good in the industry, outperforming 76.19% 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 | 26.03% | ||
| PM (TTM) | 16.78% | ||
| GM | 38.63% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WHD is creating some value.
Compared to 1 year ago, WHD has more shares outstanding
WHD has more shares outstanding than it did 5 years ago.
WHD has a better debt/assets ratio than last year.
2.2 Solvency
WHD has an Altman-Z score of 5.37. This indicates that WHD is financially healthy and has little risk of bankruptcy at the moment.
WHD has a better Altman-Z score (5.37) than 92.06% of its industry peers.
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.
WHD's Debt to FCF ratio of 0.08 is amongst the best of the industry. WHD outperforms 93.65% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that WHD is not too dependend on debt financing.
WHD has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. WHD outperforms 93.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.37 |
ROIC/WACC1.64
WACC9.01%
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 93.65% of its industry peers.
WHD has a Quick Ratio of 3.47. This indicates that WHD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.47, WHD belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.47 |
3. Growth
3.1 Past
WHD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.63%.
Measured over the past years, WHD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.32% on average per year.
Looking at the last year, WHD shows a decrease in Revenue. The Revenue has decreased by -0.58% in the last year.
WHD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.45% yearly.
EPS 1Y (TTM)-5.63%
EPS 3Y62.38%
EPS 5Y10.32%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%2.26%
3.2 Future
Based on estimates for the next years, WHD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.71% on average per year.
WHD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.87% yearly.
EPS Next Y-8.91%
EPS Next 2Y1.44%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue Next Year-0.35%
Revenue Next 2Y3.89%
Revenue Next 3Y8.87%
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
The Price/Earnings ratio is 14.99, which indicates a correct valuation of WHD.
WHD's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, WHD is valued a bit cheaper.
WHD is valuated correctly with a Price/Forward Earnings ratio of 14.47.
WHD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WHD to the average of the S&P500 Index (21.90), we can say WHD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 14.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WHD indicates a slightly more expensive valuation: WHD is more expensive than 76.19% of the companies listed in the same industry.
WHD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
WHD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y1.44%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
WHD has a Yearly Dividend Yield of 1.16%.
WHD's Dividend Yield is a higher than the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.42, WHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of WHD is nicely growing with an annual growth rate of 38.52%!
WHD has been paying a dividend for over 5 years, so it has already some track record.
WHD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)38.52%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
18.23% 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.
DP18.23%
EPS Next 2Y1.44%
EPS Next 3Y9.71%
45.27
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners109.4%
Inst Owner Change-1.02%
Ins Owners0.91%
Ins Owner Change-0.19%
Market Cap3.61B
Analysts73.33
Price Target51.34 (13.41%)
Short Float %4.57%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend0.5
Dividend Growth(5Y)38.52%
DP18.23%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.63%
Min EPS beat(2)-0.06%
Max EPS beat(2)7.32%
EPS beat(4)3
Avg EPS beat(4)3.66%
Min EPS beat(4)-0.06%
Max EPS beat(4)7.32%
EPS beat(8)6
Avg EPS beat(8)5.17%
EPS beat(12)10
Avg EPS beat(12)8.11%
EPS beat(16)12
Avg EPS beat(16)6.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.07%
Revenue beat(4)3
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.07%
Revenue beat(8)6
Avg Revenue beat(8)0.35%
Revenue beat(12)9
Avg Revenue beat(12)1.09%
Revenue beat(16)12
Avg Revenue beat(16)1.61%
PT rev (1m)1.34%
PT rev (3m)-10.12%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)1.78%
Revenue NY rev (3m)-2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 14.47 | ||
| P/S | 3.18 | ||
| P/FCF | 15.72 | ||
| P/OCF | 13.32 | ||
| P/B | 3.26 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)3.02
EY6.67%
EPS(NY)3.13
Fwd EY6.91%
FCF(TTM)2.88
FCFY6.36%
OCF(TTM)3.4
OCFY7.51%
SpS14.23
BVpS13.88
TBVpS9.33
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.78% | ||
| ROE | 17.21% | ||
| ROCE | 18.46% | ||
| ROIC | 14.73% | ||
| ROICexc | 18.82% | ||
| ROICexgc | 26.48% | ||
| OM | 26.03% | ||
| PM (TTM) | 16.78% | ||
| GM | 38.63% | ||
| FCFM | 20.24% |
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-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 67.96% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 105.75 | ||
| Cash Conversion | 76.08% | ||
| Profit Quality | 120.57% | ||
| Current Ratio | 4.85 | ||
| Quick Ratio | 3.47 | ||
| Altman-Z | 5.37 |
F-Score7
WACC9.01%
ROIC/WACC1.64
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)-5.63%
EPS 3Y62.38%
EPS 5Y10.32%
EPS Q2Q%-2.67%
EPS Next Y-8.91%
EPS Next 2Y1.44%
EPS Next 3Y9.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%2.26%
Revenue Next Year-0.35%
Revenue Next 2Y3.89%
Revenue Next 3Y8.87%
Revenue Next 5YN/A
EBIT growth 1Y6.66%
EBIT growth 3Y56.61%
EBIT growth 5Y9.59%
EBIT Next Year15.06%
EBIT Next 3Y8.95%
EBIT Next 5YN/A
FCF growth 1Y84.36%
FCF growth 3Y77.05%
FCF growth 5Y13.06%
OCF growth 1Y68.36%
OCF growth 3Y70.48%
OCF growth 5Y8.57%