Cactus, Inc. (WHD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Archrock, Inc.

TechnipFMC plc

Cactus, Inc.

NOV, Inc.

Weatherford International plc

Helix Energy Solutions Group, Inc.

Halliburton Co.

USA Compression Partners LP

Liberty Energy, Inc.

RPC, Inc.

ProFrac Holding Corp.

Why is Cactus, Inc. ?

High Management Efficiency with a high ROE of 19.48%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 15.59% of over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 17.23%
OPERATING PROFIT(Q) Lowest at USD 76.69 MM
PRE-TAX PROFIT(Q) Lowest at USD 63.32 MM

With ROE of 21.60%, it has a fair valuation with a 3.29 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -31.46%, its profits have risen by 2.3%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.46% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cactus, Inc. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cactus, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cactus, Inc.

-30.46%

-0.29

44.31%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.49%

EBIT Growth (5y)

15.59%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.10

Tax Ratio

22.78%

Dividend Payout Ratio

18.03%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

37.14%

ROE (avg)

19.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.29

EV to EBIT

11.06

EV to EBITDA

9.19

EV to Capital Employed

4.28

EV to Sales

2.91

PEG Ratio

Dividend Yield

113.47%

ROCE (Latest)

38.66%

ROE (Latest)

21.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -31.63 %

CASH AND EQV(HY)

Highest at USD 752.84 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.43

-12What is not working for the Company

ROCE(HY)

Lowest at 17.23%

OPERATING PROFIT(Q)

Lowest at USD 76.69 MM

PRE-TAX PROFIT(Q)

Lowest at USD 63.32 MM

NET PROFIT(Q)

Lowest at USD 40.33 MM

RAW MATERIAL COST(Y)

Grown by 7.49% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.14 times

OPERATING PROFIT MARGIN(Q)

Lowest at 28.03 %

EPS(Q)

Lowest at USD 0.59

Here's what is working for Cactus, Inc.

Debt-Equity Ratio

Lowest at -31.63 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 752.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 5.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 15.89 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cactus, Inc.

Operating Profit

Lowest at USD 76.69 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 63.32 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 40.33 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 28.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 0.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 3.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales