Cactus Stock Fair Value – Cactus Earnings Outlook Positive: What to Expect from the Company
August 11, 2023
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CACTUS ($NYSE:WHD) is an up-and-coming public company with a promising future. Recently, industry analysts have been looking at the company’s earnings outlook with optimism, forecasting encouraging results in the upcoming quarters. The prospects for CACTUS’ earnings are bright, and investors should be eager to capitalize on their opportunities. One of the main reasons for the positive outlook is the company’s ability to stay on top of industry trends and capitalize on them. CACTUS has invested heavily in research and development, which has enabled them to stay ahead of their competitors and remain competitive within the market. This dedication to innovation and staying ahead of the technological curve has made CACTUS an attractive investment for many investors. Furthermore, CACTUS has also been able to maintain a healthy balance sheet, which has provided a stable platform for growth.
The company’s financials are solid, and have contributed to increased investor confidence. As such, the outlook for CACTUS’ earnings is looking very positive, and investors should be excited for the potential opportunities that come with it. Overall, CACTUS is a company with a bright future, and its earnings outlook is looking positive. Investors should be sure to keep an eye on the company’s progress as it continues to grow and capitalize on industry trends. With its strong financials and dedication to innovation, CACTUS is well-positioned to provide investors with excellent returns in the future.
Earnings
In CACTUS‘s latest earnings report for FY2023 Q2 ending June 30 2019, the company reported total revenues of 168.49M USD and net income of 21.41M USD. This marks a significant increase from the same quarter a year ago; total revenue increased by 153.2%, and net income increased by 255.1%. Over the last 3 years, total revenue has grown steadily, reaching 305.82M USD.
These strong earnings and steady growth indicate that CACTUS is in an advantageous position to continue increasing its profitability in the coming fiscal year. Investors and analysts can expect CACTUS to continue its upward trajectory in terms of revenue and net income, as the company looks to capitalize on the current favorable market conditions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cactus. More…
| Total Revenues | Net Income | Net Margin |
| 906.48 | 130.06 | 14.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cactus. More…
| Operations | Investing | Financing |
| 238.18 | -652.18 | 167.47 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cactus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.48k | 523.62 | 11.41 |
Key Ratios Snapshot
Some of the financial key ratios for Cactus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 13.8% | 22.1% |
| FCF Margin | ROE | ROA |
| 22.1% | 17.0% | 8.5% |
Market Price
On Monday, CACTUS stock opened at $51.5 and closed at $50.8, a decrease of 1.5% from its prior closing price of $51.5. Despite this slight dip, analysts are still optimistic about the company’s earnings outlook. Financial experts believe that CACTUS has the potential to show strong growth in the coming quarters. The stock’s recent performance indicates that investors believe the company has the potential to deliver on its earnings guidance. Analysts are confident that CACTUS will continue to show positive returns in the future.
This is due to the company’s strong portfolio of products and services, as well as its commitment to customer satisfaction. Overall, CACTUS looks to be in a strong position in terms of its financial outlook. With its current momentum, analysts expect the company to show growth in the near future. As such, investors should remain optimistic about CACTUS’s earnings outlook and anticipate continued success from the company in the future. Cactus_Earnings_Outlook_Positive_What_to_Expect_from_the_Company”>Live Quote…
Analysis – Cactus Stock Fair Value
GoodWhale has completed an analysis of CACTUS’s financials and have determined the intrinsic value of CACTUS share to be around $63.7. This was calculated using our proprietary Valuation Line, which involves analysis of the company’s financials and market comparisons. In comparison, the current market price of CACTUS stock is $50.8, which is significantly lower than the intrinsic value, suggesting that the stock is undervalued by 20.2%. Thus, investing in CACTUS stock now may be a good option for potential investors who are looking for a good return on their investments. Cactus_Earnings_Outlook_Positive_What_to_Expect_from_the_Company”>More…
Peers
The company operates in the United States and internationally. Cactus Inc has a market capitalization of $2.6 billion as of May 2019. The company was founded in mid-2011 and is headquartered in Houston, Texas. Cactus Inc’s competitors include NexTier Oilfield Solutions Inc, Halliburton Co, Patterson-UTI Energy Inc. These companies are all larger than Cactus Inc, with market capitalizations ranging from $4.4 billion to $29.8 billion. Cactus Inc has been able to compete successfully against these larger companies by focusing on providing high quality services at a competitive price.
– NexTier Oilfield Solutions Inc ($NYSE:NEX)
NexTier Oilfield Solutions Inc. is a provider of oilfield services and products. The company operates in three segments: completion and production services, drilling services, and oilfield equipment and rentals. The completion and production services segment provides a range of services and products, including hydraulic fracturing, coiled tubing, cased hole wireline, cementing, acidizing, nitrogen, and fluid management services. The drilling services segment provides a range of services and products, including directional drilling, logging-while-drilling, and measurement-while-drilling services. The oilfield equipment and rentals segment provides a range of services and products, including drilling rigs, completion equipment, and oilfield rentals.
– Halliburton Co ($NYSE:HAL)
As of 2022, Halliburton Co has a market cap of 34.94B and a Return on Equity of 18.05%. The company is a provider of services and products to the energy industry. Halliburton’s operations are divided into two segments: Completion and Production, and Drilling and Evaluation. The Completion and Production segment provides completion services, production enhancement services, and other services to the upstream oil and gas industry. The Drilling and Evaluation segment provides drilling, evaluation, and wellbore placement services to the upstream oil and gas industry.
– Patterson-UTI Energy Inc ($NASDAQ:PTEN)
Patterson-UTI Energy Inc is a land-based drilling contractor in North America. The company provides services to exploration and production companies in the oil and gas industry.
Patterson-UTI Energy Inc has a market cap of $3.93 billion as of 2022 and a return on equity of -10.72%. The company has been negatively impacted by the Covid-19 pandemic, with a decrease in demand for oil and gas drilling services. Patterson-UTI Energy Inc is working to reduce costs and improve efficiency in order to weather the current market conditions.
Summary
Investing in CACTUS is a sound decision as the company is projected to have strong financial growth in the near future. Analysts have identified several key factors that could strengthen the company’s earnings outlook, including increased demand for their products and services, a favorable macroeconomic environment, and a number of strategic initiatives to drive profitability. CACTUS has also been taking steps to strengthen its balance sheet, such as reducing its debt and increasing its cash reserves.
These positive signs have been reflected in analyst ratings and stock prices, with CACTUS currently having a “Buy” rating from most Wall Street analysts. Investors should consider investing in CACTUS shares if they are looking for near-term growth potential as well as long-term stability.
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