Yahoo Finance Why Cactus, Inc. (NYSE:WHD) Could Be Your Next Investment
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Cactus, Inc. (NYSE:WHD) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of WHD, it is a financially-sound company with an impressive track record and an optimistic future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Cactus here.
Solid track record with high growth potential
Investors in search for stocks with room to flourish should look no further than WHD, with its expected earnings growth of 27% which is expected to flow into an impressive return on equity of 29% over the next couple of years. Over the past few years, WHD has demonstrated a proven ability to generate robust returns of 41%. Not surprisingly, WHD outperformed its industry which returned 9.2%, giving us more conviction of the company's capacity to drive bottom-line growth going forward.
WHD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. WHD seems to have put its debt to good use, generating operating cash levels of 11.48x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Cactus, I've compiled three essential aspects you should look at:
Valuation: What is WHD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WHD is currently mispriced by the market.
Dividend Income vs Capital Gains: Does WHD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from WHD as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WHD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
