Cactus Inc. Class A Common Stock (WHD)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics and a price that leaves room for error. Cactus sells and rents pressure-control equipment and spoolable pipe to oil and gas operators. The balance sheet is conservative: debt-to-equity 0.03, Altman Z-Score 3.61, and Piotroski F-Score 7 out of 9. Trailing free cash flow of $324 million gives an 8.4% FCF yield at a $3.8 billion market cap. Recent operations improved: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $449.5 million and net income $49.0 million, up from $273.6 million and $40.3 million in fiscal Q2 2025, the quarter ended 2025-06-30. That is respectable cyclical growth. But annual results are uneven: in FY2025, the period ended 2025-12-31, revenue was $1.1 billion and net income $166.0 million, down from FY2024, the period ended 2024-12-31, net income of $185.4 million despite similar revenue. FairStock classifies this as CYCLICAL - Oil & Gas Equipment & Services, and beta of 1.38 supports that. FairStock-calculated returns are only moderate: ROE 13.11% and ROCE 7.41%. Valuation is the rub. At the $64.07 close on 2026-10-13, FairStock calculates P/E 53.84, P/B 3.60, and PEG 2.51. Its Graham Number is $21.84, implying a negative margin of safety of -193.36%. Even EV/EBITDA of 9.46 is not obviously cheap. The 8.4% free cash flow yield is the strongest point. I would want a wider discount and evidence that fiscal Q2 2026 strength is durable, not merely a cyclical peak. Quality is decent; price asks for much.

In plain English: Cactus makes and rents equipment used in oil and gas wells, plus flexible pipe. The business has little debt and strong cash flow, and its latest quarter sales and profit rose from a year earlier. At $64.07, the stock looks expensive compared with the profit and asset value it reports, and demand can swing with oil and gas activity.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer