CACTUS INC - A (WHD) Stock Fundamental Analysis
NYSE:WHD - New York Stock Exchange, Inc. - US1272031071 - Common Stock - Currency: USD
WHD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WHD was profitable.
WHD had a positive operating cash flow in the past year.
In the past 5 years WHD has always been profitable.
Each year in the past 5 years WHD had a positive operating cash flow.
1.2 Ratios
WHD has a Return On Assets of 10.78%. This is amongst the best in the industry. WHD outperforms 92.06% of its industry peers.
The Return On Equity of WHD (17.21%) is better than 84.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.73%, WHD belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
WHD had an Average Return On Invested Capital over the past 3 years of 14.80%. This is significantly above the industry average of 8.50%.
| 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
The Profit Margin of WHD (16.78%) is better than 92.06% of its industry peers.
In the last couple of years the Profit Margin of WHD has grown nicely.
WHD has a Operating Margin of 26.03%. This is amongst the best in the industry. WHD outperforms 93.65% of its industry peers.
WHD's Operating Margin has declined in the last couple of years.
WHD has a better Gross Margin (38.63%) than 76.19% of its industry peers.
WHD's Gross Margin has been stable in the last couple of years.
| 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
WHD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WHD has more shares outstanding than it did 1 year ago.
WHD has more shares outstanding than it did 5 years ago.
WHD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.50 indicates that WHD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.50, WHD belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
WHD has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.08, WHD belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
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 93.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.58
WACC9.31%
2.3 Liquidity
A Current Ratio of 4.85 indicates that WHD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.85, WHD belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
A Quick Ratio of 3.47 indicates that WHD has no problem at all paying its short term obligations.
WHD has a better Quick ratio (3.47) than 93.65% of its industry peers.
| 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%.
WHD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.32% yearly.
Looking at the last year, WHD shows a decrease in Revenue. The Revenue has decreased by -0.58% in the last year.
The Revenue has been growing by 12.45% on average over the past years. This is quite good.
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
WHD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.21% yearly.
The Revenue is expected to grow by 1.24% on average over the next years.
EPS Next Y-7.52%
EPS Next 2Y0.77%
EPS Next 3Y7.21%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y-0.79%
Revenue Next 3Y1.24%
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 15.26 indicates a correct valuation of WHD.
WHD's Price/Earnings is on the same level as the industry average.
WHD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 14.93, the valuation of WHD can be described as correct.
Based on the Price/Forward Earnings ratio, WHD is valued a bit more expensive than 60.32% of the companies in the same industry.
WHD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
80.95% of the companies in the same industry are cheaper than WHD, based on the Enterprise Value to EBITDA ratio.
WHD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
The excellent profitability rating of WHD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y0.77%
EPS Next 3Y7.21%
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 3.73.
Compared to an average S&P500 Dividend Yield of 2.39, 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.
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
18.23% of the earnings are spent on dividend by WHD. This is a low number and sustainable payout ratio.
The dividend of WHD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.23%
EPS Next 2Y0.77%
EPS Next 3Y7.21%
46.09
-0.95 (-2.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners113.46%
Inst Owner Change-1.02%
Ins Owners0.68%
Ins Owner Change-0.19%
Market Cap3.68B
Analysts73.33
Price Target50.66 (9.92%)
Short Float %4.95%
Short Ratio3.81
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)0%
PT rev (3m)-16.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.63%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-12%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-5.9%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.93 | ||
| P/S | 3.24 | ||
| P/FCF | 16 | ||
| P/OCF | 13.56 | ||
| P/B | 3.32 | ||
| P/tB | 4.94 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)3.02
EY6.55%
EPS(NY)3.09
Fwd EY6.7%
FCF(TTM)2.88
FCFY6.25%
OCF(TTM)3.4
OCFY7.38%
SpS14.23
BVpS13.88
TBVpS9.33
PEG (NY)N/A
PEG (5Y)1.48
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 | 5.5 |
F-Score7
WACC9.31%
ROIC/WACC1.58
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-7.52%
EPS Next 2Y0.77%
EPS Next 3Y7.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y37.08%
Revenue growth 5Y12.45%
Sales Q2Q%2.26%
Revenue Next Year-2.27%
Revenue Next 2Y-0.79%
Revenue Next 3Y1.24%
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%