Cactus, Inc. (WHD) | Investment Case

1. Company Snapshot

1.a. Company Description

Cactus, Inc.designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States, Australia, China, and the Kingdom of Saudi Arabia.The company's principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks, zipper manifolds, and production trees.

It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, repair, and safe handling of the wellhead and pressure control equipment; and repair and refurbishment services.The company sells or rents its products for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.In addition, it operates 15 service centers in the United States, as well as 3 service centers in Eastern Australia.

Cactus, Inc.was founded in 2011 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on WHD

Cactus, Inc.'s recent performance was positively driven by its Q3 2025 earnings release, which revealed revenue of $264.0 million and operating income of $61.2 million. The company's adjusted net income was $53.7 million, with diluted earnings per share of $0.67, beating the Zacks Consensus Estimate of $0.58 per share. Additionally, Ethic Inc. increased its holdings in Cactus by 30.5% during the quarter. The company's solid financial results and increased investor interest are notable developments.

1.c. Company Highlights

Last Price	46.02
Change Percentage	0.13%
Open	45.95
Previous Close	45.96
Market Cap ( Millions)	3168
Volume	318056
Year High	65.75
Year Low	33.2
M A 50	40.38
M A 200	42.45

FCF Yield	7.59%
Dividend Yield	1.17%
ROE	16.07%
Debt / Equity	3.33%
Net Debt / EBIDTA	-121.04%
Price To Book	2.66
Price Earnings Ratio	17.42
Price To FCF	13.17
Price To sales	2.91
EV / EBITDA	8.24

2. Cactus Beats Q3 Estimates with Strong Margin Performance

Cactus reported total Q3 revenues of $264 million, a 3.5% sequential decline, while total adjusted EBITDA was $87 million, approximately flat from the second quarter. The company's EPS came in at $0.67, beating estimates of $0.58. The Pressure Control segment revenues were down 6.2% sequentially, driven by lower frac rental revenues, while Spoolable Technologies segment revenues were down 1% sequentially on lower domestic customer activity levels. The company's ability to flex its organization and supply chain helped improve profitability, as evident from the Pressure Control margin beat, which Scott Bender attributed to a combination of factors, including cooperation from suppliers and understanding customers.

Publication Date: Nov -02

                                    📋 Highlights
                                    Q3 Financial Performance::
                                                Revenues fell 3.5% to $264M, with adjusted EBITDA flat at $87M from Q2.
Pressure Control Segment::
                                                6.2% sequential revenue decline due to lower frac rentals, yet margins improved via tariff mitigation and cost cuts.
Spoolable Technologies Growth:</b) 1% sequential revenue drop from reduced domestic activity, but international sales exceeded expectations.</li>  
<li><b>Tariff Impact::
                                                25–50% tariffs in May/June pressured margins, but clarity post-Q3 aids supplier/customer strategy.

                                

Segment Performance

The Pressure Control segment faced challenges due to lower frac rental revenues, but the company's efforts to mitigate tariffs and reduce costs helped improve margins. Spoolable Technologies segment revenues were impacted by lower domestic customer activity levels, but international shipments exceeded expectations. The company is optimistic about its international opportunities in the Spoolable Technologies segment, citing increased interest in the product worldwide and the introduction of the sour service product in the past year.

Outlook and Valuation

Cactus expects relatively flat Pressure Control revenue and increased Spoolable Technologies international revenue in the fourth quarter. Analysts estimate next year's revenue growth at 17.4%. With a P/E Ratio of 16.72 and an EV/EBITDA of 7.86, the company's valuation appears reasonable. The ROE of 16.07% and ROIC of 11.78% indicate a strong return on equity and invested capital. The Net Debt / EBITDA ratio of -1.21 suggests a healthy debt position. The company's growth prospects and improving profitability are expected to drive returns, making it an attractive investment opportunity.

Growth Prospects

The company is well-positioned for growth, driven by its international opportunities in the Spoolable Technologies segment and its ability to defend and potentially expand its market share in the Pressure Control segment. The introduction of new products, such as the sour service product, is expected to drive growth. The company's presence in Vietnam is also progressing well, with API monogram equipment expected to be ready by the first quarter of 2026.

3. NewsRoom

15,366 Shares in Cactus, Inc. $WHD Bought by AGF Management Ltd.

Nov -12

Source: defenseworld.net

OtterBox Symmetry Series Cactus Leather Embroidery Named as CES Innovation Awards® 2026 Honoree

Nov -06

Source: prnewswire.com

American Century Focused Dynamic Growth Fund Q3 2025 Performance Contributors And Detractors

Nov -05

Source: seekingalpha.com

KuCoin Institutional and Cactus Custody Forge Strategic Partnership to Enhance Institutional Digital Asset Security and Market Access

Nov -05

Source: prnewswire.com

Ethic Inc. Acquires 1,377 Shares of Cactus, Inc. $WHD

Oct -31

Source: defenseworld.net

Cactus, Inc. (WHD) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

Cactus (WHD) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -30

Source: zacks.com

Cactus, Inc. (WHD) Q3 Earnings and Revenues Beat Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.59%)

6. Segments

Pressure Control

Expected Growth: 3.5%

Cactus, Inc.'s Pressure Control segment growth of 3.5% is driven by increasing demand for well intervention services, rising adoption of digital oil fields, and growing need for efficient production optimization. Additionally, the company's strategic expansion into new markets and innovative product offerings have contributed to this growth.

Spoolable Technologies

Expected Growth: 3.8%

Spoolable Technologies from Cactus, Inc. achieves 3.8% growth driven by increasing adoption in oil and gas, rising demand for efficient well intervention, and expanding presence in international markets. Additionally, innovative product offerings, strategic partnerships, and cost-effective solutions contribute to the segment's growth momentum.

7. Detailed Products

CactusCare

A comprehensive health and wellness program designed for individuals and families

CactusShield

A cutting-edge cybersecurity solution for businesses and individuals

CactusGrow

A suite of business growth and development services for entrepreneurs and small business owners

CactusLearn

An online learning platform offering courses and training programs in various fields

CactusConnect

A social networking platform for professionals and entrepreneurs

8. Cactus, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cactus, Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Cactus, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative products.

Bargaining Power Of Suppliers

Cactus, Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

Cactus, Inc. operates in a moderately competitive industry, with some barriers to entry, but new entrants can still pose a threat.

Intensity Of Rivalry

Cactus, Inc. operates in a highly competitive industry, with intense rivalry among existing players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	4.41%
Debt Cost	13.62%
Equity Weight	95.59%
Equity Cost	13.62%
WACC	13.62%
Leverage	4.62%

11. Quality Control: Cactus, Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

USA Compression Partners

A-Score: 7.1/10

Value: 6.0

Growth: 5.2

Quality: 6.7

Yield: 10.0

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

Archrock

A-Score: 5.9/10

Value: 4.2

Growth: 4.6

Quality: 5.2

Yield: 8.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

NOV

A-Score: 5.0/10

Value: 7.6

Growth: 5.6

Quality: 5.1

Yield: 4.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

Weatherford

A-Score: 4.4/10

Value: 6.1

Growth: 7.4

Quality: 5.9

Yield: 1.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

Cactus

A-Score: 4.4/10

Value: 5.4

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

Liberty Energy

A-Score: 4.3/10

Value: 7.5

Growth: 7.9

Quality: 4.6

Yield: 3.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.59%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.62%

Cactus, Inc. - US1272031071

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WHD

1.c. Company Highlights

Better Quality

Expensive

Stable Momentum

Earnings Beats

Average Yield

Revenues Beats

Average Growth

Strong Momentum

Earnings Miss

Revenues Miss

Fairly Valued

Higher Growth

Weak Momentum

2. Cactus Beats Q3 Estimates with Strong Margin Performance

Segment Performance

Outlook and Valuation

Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.59%)

6. Segments

Pressure Control

Expected Growth: 3.5%

Spoolable Technologies

Expected Growth: 3.8%

7. Detailed Products

CactusCare

CactusShield

CactusGrow

CactusLearn

CactusConnect

8. Cactus, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cactus, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.02$

Current Price

46.02$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA