One-glance verdict
Undervalued
$97.87 our estimate vs market $55.01
Wall Street consensus: $71.78 (-26.7% lower than our fair-value estimate)
44% below our estimate, below the bear case
Fundamentals snapshot
Cactus, Inc.
WHD · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$55.01
52-week range
$39.16 - $74.07
Market cap
$4.44B
Balance sheet
Healthy
94.42x Strong cushion
Net cash $300.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 41.8% last year.
- Reward Returns 14.2% on equity, ahead of 50% of its peers.
- Risk Stock trades 74.8% above its 5-year average P/E.
- Risk Operating margin compressed from 25.4% to 21.8% over 3 years.
What this company does
Cactus, Inc.
Cactus, Inc. makes and rents out equipment that helps control pressure in oil and gas wells, plus special pipes used to move oil and gas. Their main money comes from selling and renting these products, especially to companies drilling for oil and gas in places like the United States and Australia. This matters because when oil and gas companies are busy, they need Cactus's equipment to operate safely and efficiently.
How the company got here
Cactus, Inc. was founded in 2011 by members of the Bender family, who had decades of experience in the oil and gas industry. The company's initial focus was on providing wellhead and pressure control equipment to the rapidly growing U.S. shale market. Cactus went public on the New York Stock Exchange in 2018, which provided access to capital to fuel its growth. A significant turning point was the acquisition of FlexSteel in 2023, which added spoolable pipe technology and created a second major business segment for the company. More recently, Cactus expanded its international presence by acquiring a controlling interest in Baker Hughes' Surface Pressure Control Business.
What it actually does
Cactus, Inc. designs, manufactures, sells, and rents specialized equipment used in the oil and gas industry. Think of them as a crucial supplier for companies that drill for and produce oil and natural gas. Their products are essential for safely managing the high pressures involved in extracting these resources from the ground. They provide both the physical equipment and the services to install and maintain it, operating in key oil and gas regions around the world.
Pressure Control
This is Cactus's core business, focusing on equipment that controls the flow and pressure of oil and gas from a well. This includes wellheads, which are like the gatekeepers at the top of the well, and other pressure control systems used during drilling, completion (when the well is prepared for production), and the ongoing production phase. They sell and rent this equipment, and also provide essential field services to ensure it's installed and working correctly. This segment is a significant contributor to the company's overall revenue.
Spoolable Technologies
This segment, primarily operating under the FlexSteel brand, focuses on manufacturing and selling flexible, spoolable pipes. These pipes are used to transport oil, gas, and other liquids, often for production, gathering, and takeaway pipelines. Unlike rigid traditional pipes, these are flexible and come on large spools, making them easier to transport and install in certain environments. This business line also includes related field services and equipment rentals to support the installation process.
What management is betting on now
Cactus's management is focused on expanding the company's global reach and diversifying its offerings. A key strategy is to grow its international presence, particularly through acquisitions like the one involving Baker Hughes' Surface Pressure Control Business, to tap into new markets. They are also investing in increasing the capacity of their Spoolable Technologies segment to meet growing demand. This strategy aims to make the company less reliant on any single oilfield activity and more resilient to market fluctuations by being involved in all stages of oil and gas extraction, from drilling to production, across a wider geographic area.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$430.89M
Net income
$62.16M
Diluted EPS
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Operating cash flow
$18.42M
Free cash flow
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Sources
Revenue
$449.53M
Net income
$49.00M
Diluted EPS
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Operating cash flow
$104.56M
Free cash flow
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Sources
Revenue
$388.35M
Net income
$32.91M
Diluted EPS
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Operating cash flow
$128.27M
Free cash flow
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Sources
Revenue
$261.20M
Net income
$39.84M
Diluted EPS
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Operating cash flow
$72.27M
Free cash flow
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Sources
Revenue
$263.95M
Net income
$41.62M
Diluted EPS
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Operating cash flow
$61.77M
Free cash flow
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Sources
Revenue
$273.57M
Net income
$40.33M
Diluted EPS
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Operating cash flow
$82.83M
Free cash flow
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Sources
Revenue
$280.32M
Net income
$44.22M
Diluted EPS
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Operating cash flow
$41.55M
Free cash flow
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Sources
Revenue
$272.12M
Net income
$46.69M
Diluted EPS
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Operating cash flow
$66.59M
Free cash flow
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Is it cheap or expensive?
Fair value $97.87 vs current price $55.01
Wall Street consensus is the average analyst price target: $71.78 (-26.7% lower than our fair-value estimate).
Our most-likely fair value is $97.87 a share — about 77.9% above today's price of $55.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $300.1M - more cash than debt. Interest coverage 94.4x.
Net debt
$-300.12M
Interest coverage
94.42x
Cactus, Inc.'s profit covers its interest bill about 94.4 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
WHD
BASELINE
Cactus, Inc.
Total debt $54.10M Interest coverage 94.42x This is the baseline the peer rows are being compared against.
Total debt $1.63B Interest coverage 5.43x -94% vs WHD Carries about 17.4x less debt cushion than WHD.
Total debt $2.32B Interest coverage 6.41x -93% vs WHD Carries about 14.7x less debt cushion than WHD.
Total debt $795.59M Interest coverage 8.24x -91% vs WHD Carries about 11.5x less debt cushion than WHD.
Total debt $1.86B Interest coverage 2.15x -98% vs WHD Carries about 43.8x less debt cushion than WHD.
Total debt $75.07M Interest coverage 44.05x -53% vs WHD Carries about 2.1x less debt cushion than WHD.
What you should know
The case for and against WHD
3 Rewards
3 Risks
Rewards
-
Revenue grew 41.8% last year.
-
Returns 14.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 74.8% above its 5-year average P/E.
-
Operating margin compressed from 25.4% to 21.8% over 3 years.
-
Insider ownership is only 1.0% (peer median: 1.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
37.42x
Forward P/E
15.25x
P/B
2.95x
P/S
2.90x
EV/EBITDA
9.93x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
33.5%
Operating margin
21.8%
Net margin
12.0%
ROE
14.2%
ROA
8.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
3.06x
Quick ratio
2.04x
Total debt
$54.10M
Total cash
$354.22M
Growth
How the business has been compounding
Revenue TTM
$1.53B
Revenue 5Y CAGR
25.2%
EPS TTM
1.47
EPS 5Y CAGR
10.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$323.52M
Free CF TTM
$219.61M
FCF margin
14.4%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
38.8%
Last ex-div date
2026-11-30