CACTUS INC - A (WHD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WHD - US1272031071 - Common Stock
53.47 USD
-1.87 (-3.38%)
53.5 USD
+0.03 (+0.06%)
We assign a fundamental rating of 7 out of 10 to WHD. WHD was compared to 62 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WHD was profitable.
- WHD had a positive operating cash flow in the past year.
- Each year in the past 5 years WHD has been profitable.
- WHD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WHD has a better Return On Assets (9.29%) than 93.55% of its industry peers.
- WHD's Return On Equity of 14.55% is amongst the best of the industry. WHD outperforms 85.48% of its industry peers.
- WHD has a Return On Invested Capital of 12.32%. This is amongst the best in the industry. WHD outperforms 93.55% of its industry peers.
- WHD had an Average Return On Invested Capital over the past 3 years of 14.80%. This is above the industry average of 12.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 14.55% | ||
| ROIC | 12.32% |
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's Profit Margin of 15.89% is amongst the best of the industry. WHD outperforms 91.94% of its industry peers.
- WHD's Profit Margin has improved in the last couple of years.
- WHD has a better Operating Margin (23.91%) than 93.55% of its industry peers.
- WHD's Operating Margin has declined in the last couple of years.
- The Gross Margin of WHD (37.41%) is better than 77.42% of its industry peers.
- 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 | 23.91% | ||
| PM (TTM) | 15.89% | ||
| GM | 37.41% |
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
- 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
- WHD has an Altman-Z score of 5.95. This indicates that WHD is financially healthy and has little risk of bankruptcy at the moment.
- WHD's Altman-Z score of 5.95 is amongst the best of the industry. WHD outperforms 95.16% of its industry peers.
- The Debt to FCF ratio of WHD is 0.09, which is an excellent value as it means it would take WHD, only 0.09 years of fcf income to pay off all of its debts.
- WHD has a better Debt to FCF ratio (0.09) than 95.16% 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.
- WHD has a better Debt to Equity ratio (0.01) than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.38
WACC8.91%
2.3 Liquidity
- A Current Ratio of 5.28 indicates that WHD has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 5.28, WHD belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
- WHD has a Quick Ratio of 3.74. This indicates that WHD is financially healthy and has no problem in meeting its short term obligations.
- WHD has a Quick ratio of 3.74. This is amongst the best in the industry. WHD outperforms 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.28 | ||
| Quick Ratio | 3.74 |
3. Growth
3.1 Past
- WHD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.34%.
- Measured over the past years, WHD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
- WHD shows a decrease in Revenue. In the last year, the revenue decreased by -3.76%.
- 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)-12.34%
EPS 3Y62.74%
EPS 5Y10.47%
EPS Q2Q%-15.19%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%-9.97%
3.2 Future
- WHD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.30% yearly.
- The Revenue is expected to grow by 8.95% on average over the next years. This is quite good.
EPS Next Y-13.03%
EPS Next 2Y-2.34%
EPS Next 3Y3.3%
EPS Next 5YN/A
Revenue Next Year-5.58%
Revenue Next 2Y12.21%
Revenue Next 3Y8.95%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 19.30 indicates a rather expensive valuation of WHD.
- WHD's Price/Earnings ratio is a bit cheaper when compared to the industry. WHD is cheaper than 72.58% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. WHD is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 18.32, WHD is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, WHD is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, WHD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
- 77.42% of the companies in the same industry are cheaper than WHD, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as WHD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.55 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
- WHD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.84
EPS Next 2Y-2.34%
EPS Next 3Y3.3%
5. Dividend
5.1 Amount
- WHD has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
- WHD's Dividend Yield is a higher than the industry average which is at 1.17.
- Compared to an average S&P500 Dividend Yield of 1.82, WHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
- 21.25% 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.
DP21.25%
EPS Next 2Y-2.34%
EPS Next 3Y3.3%
CACTUS INC - A / WHD FAQ
What is the ChartMill fundamental rating of CACTUS INC - A (WHD) stock?
ChartMill assigns a fundamental rating of 7 / 10 to WHD.
What is the valuation status of CACTUS INC - A (WHD) stock?
ChartMill assigns a valuation rating of 4 / 10 to CACTUS INC - A (WHD). This can be considered as Fairly Valued.
What is the profitability of WHD stock?
CACTUS INC - A (WHD) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for WHD stock?
The Price/Earnings (PE) ratio for CACTUS INC - A (WHD) is 19.3 and the Price/Book (PB) ratio is 3.59.
What is the financial health of CACTUS INC - A (WHD) stock?
The financial health rating of CACTUS INC - A (WHD) is 9 / 10.