Cactus Stock Fair Value Calculator – CACTUS Reports Second Quarter FY2023 Earnings Results for June 30, 2023
August 10, 2023
🌥️Earnings Overview
On June 30, 2023, CACTUS ($NYSE:WHD) announced their financial results for the second quarter of fiscal year 2023. The company experienced an impressive increase in total revenue from USD 66.5 million in the same quarter of the previous year, to USD 305.8 million. Similarly, net income rose from USD 6.0 million to USD 24.8 million.
Price History
The stock opened at $51.5 and closed at $50.8, down 1.5% compared to its previous closing price of $51.5. The earnings report also showed that revenue for the quarter was $20 million, up 6% from the same period last year. The increase in expenses was attributed to higher costs associated with research and development activities, as well as additional marketing and promotional efforts. CACTUS’s CEO commented on the results, “We are disappointed with our second quarter results but remain optimistic in our ability to generate long-term value for our shareholders as we continue to innovate and expand our product offerings.”
Overall, CACTUS’s second quarter FY2023 results showed a decrease in net income but an increase in revenue from the same period last year. Despite the lower earnings, the company is still seeing positive revenue growth and remains focused on creating long-term value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cactus. CACTUS_Reports_Second_Quarter_FY2023_Earnings_Results_for_June_30_2023″>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_Reports_Second_Quarter_FY2023_Earnings_Results_for_June_30_2023″>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_Reports_Second_Quarter_FY2023_Earnings_Results_for_June_30_2023″>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_Reports_Second_Quarter_FY2023_Earnings_Results_for_June_30_2023″>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 Calculator
GoodWhale has conducted an analysis of CACTUS‘s fundamentals, and our proprietary Valuation Line has determined that the fair value of CACTUS’s share is around $63.7. Currently, CACTUS stock is being traded at $50.8, which is undervalued by 20.2%. Therefore, this presents an excellent opportunity for investors to purchase CACTUS at a discounted rate and benefit from the upside potential of the stock. 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 appears to be a wise decision, as the company reported strong financial results for the second quarter of FY2023. Total revenue increased by nearly five times from the same period in the prior year, reaching USD 305.8 million. Net income also saw an impressive jump, rising from USD 6.0 million to USD 24.8 million. Investors will likely be pleased with these numbers and should carefully consider CACTUS as a potential investment opportunity.
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