Cactus Stock Fair Value – CACTUS Releases Financial Report for Second Quarter of FY2023
August 19, 2023
🌥️Earnings Overview
CACTUS ($NYSE:WHD) released their financial report for the second quarter of FY2023, ending June 30 2023, revealing total revenue of USD 305.8 million, representing an impressive increase from the 66.5 million reported in the same quarter the previous year. Net income was similarly striking, rising from 6.0 million to USD 24.8 million over the same period.
Stock Price
According to the report, CACTUS stock opened at $51.5 and closed at $50.8, a drop of 1.5% from its previous closing price of $51.5. The results of the quarter were largely in line with analyst expectations, though there were some areas where CACTUS failed to meet projections. Despite these setbacks, CACTUS’ overall financial performance has been strong and the company is expected to continue to see growth in the coming quarters. With a portfolio of innovative products and a strong focus on customer service, CACTUS looks set to remain one of the leading companies in its industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cactus. CACTUS_Releases_Financial_Report_for_Second_Quarter_of_FY2023″>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. CACTUS_Releases_Financial_Report_for_Second_Quarter_of_FY2023″>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. CACTUS_Releases_Financial_Report_for_Second_Quarter_of_FY2023″>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. CACTUS_Releases_Financial_Report_for_Second_Quarter_of_FY2023″>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% |
Analysis – Cactus Stock Fair Value
At GoodWhale, we conducted an extensive analysis of CACTUS‘s financials. Our proprietary Valuation Line led us to conclude that the fair value of CACTUS shares is around $63.7. Currently, CACTUS stock is trading at $50.8, which indicates that it is undervalued by approximately 20.2%. We believe that CACTUS presents a juicy opportunity for savvy investors looking to add potential value to their portfolios. 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
CACTUS has seen an impressive increase in their financial performance in the second quarter of FY2023. Revenue rose from USD 66.5 million to USD 305.8 million, while net income increased from USD 6.0 million to USD 24.8 million. This highlights the potential of CACTUS as a viable investment opportunity for investors looking to diversify their portfolios.
The company’s strong financial results have also been supported by their innovative product lines and continuous efforts to expand their customer base. As such, CACTUS could be a great option for investors seeking growth opportunities in the near future.
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