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Cactus, Inc. ( Cactus Inc. ) was incorporated on February 17, 2017 as a Delaware corporation for the purpose of completing an initial public offering of equity, which was completed on February 12, 2018 (our IPO ). We began operating in August 2011 following the formation of Cactus Wellhead, LLC ( Cactus LLC ) in part by Scott Bender and Joel Bender, who have owned or operated wellhead manufactu…
Margins and capital returns are both well above average: 23.21% operating margin, ROIC at 16.11%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 4.5% YoY. Margins deteriorated 2.4pp alongside, both lines moving the wrong way.
ROIC dropped from 22.11% to 16.11%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$1.19B
▼ -4.5% YoY
Net Income (TTM)
$155M
▼ -10.5% YoY
Op. Margin
19.49%
▼ -2.4pp YoY
ROIC
14.58%
▼ -6.0pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$345M
▼ -18.3% YoY
Net Debt
-$236M
Net Cash Position
Cash & Equiv.
$292M
5Y CAGR: +25.4%
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