As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Cactus Inc (NYSE: WHD).
Cactus Inc is primarily engaged in the designing, manufacturing, and sale of wellheads and pressure control equipment. Its principal products include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds, and production trees. The company also provides mission-critical field services, including service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. It sells or rents its products principally for onshore unconventional oil and gas wells that are utilized during the drilling, completion (including fracturing), and production. It generates most of its revenue through the sale of wellhead systems, rental income, field service and other activities.
A quick look at Cactus Inc’s share price history (below) over the past twelve months shows that the price is down 35%. Here’s why the company is undervalued.
Market Cap: $940 Million
Enterprise Value: $946 Million
Operating Earnings: $176 Million
Acquirer’s Multiple: 5.38
Free Cash Flow (TTM)
Free Cash Flow: $166 Million
FCF/EV Yield: 17%
Piotroski F-Score: 5
Altman Z-Score: 5.17
Beneish M-Score: -3.41
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