Over the past week, Cactus Inc's stock price has seen a gain of 9.23%, and over the past three months, it has surged by an impressive 69.60%. The company's market cap stands at $3.59 billion, with a current price of $55.53 per share. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of Cactus Inc is $77.69, indicating that the stock is modestly undervalued. This is a significant improvement from three months ago when the GF Value was $64.06, and the stock was considered a possible value trap.
Company Overview
Cactus Inc (WHD, Financial) operates in the Oil & Gas industry, specializing in the design, manufacture, and sale of wellheads and pressure control equipment. The company's primary products include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds, and production trees. Cactus Inc also offers mission-critical field services, such as service crews for the installation, maintenance, and safe handling of wellhead and pressure control equipment, as well as repair services for the equipment it sells or rents. The company's products are primarily sold or rented for onshore unconventional oil and gas wells used during drilling, completion (including fracturing), and production. 
Profitability Analysis
As of June 30, 2023, Cactus Inc's Profitability Rank stands at 7 out of 10, indicating a strong profitability performance compared to other companies in the same industry. The company's Operating Margin is 23.81%, better than 70.29% of 966 companies in the same sector. The ROE is 20.77%, outperforming 72.6% of 1011 companies, while the ROA is 10.35%, better than 76.55% of 1083 companies. The ROIC is 19.35%, surpassing 85.83% of 1073 companies. Over the past 10 years, Cactus Inc has demonstrated profitability for 7 years, outperforming 68.95% of 947 companies. 
Growth Prospects
Cactus Inc's Growth Rank is currently 3 out of 10. The company's 3-Year Revenue Growth Rate per Share is 2.60%, better than 35.02% of 851 companies. However, the 5-Year Revenue Growth Rate per Share is -17.20%, only better than 10.3% of 777 companies. The 3-Year EPS without NRI Growth Rate is -1.40%, outperforming 29.4% of 687 companies. 
Major Stockholders
Chuck Royce (Trades, Portfolio) is the top holder of Cactus Inc's stock, owning 377,168 shares, which represents 0.58% of the company's shares. Ken Fisher (Trades, Portfolio) follows closely with 262,158 shares, representing 0.41% of the company's shares. The third-largest holder is Keeley-Teton Advisors, LLC (Trades, Portfolio), with 81,301 shares, representing 0.13% of the company's shares.
Competitive Landscape
Cactus Inc operates in a competitive industry with major players such as TechnipFMC PLC(FTI, Financial) with a stock market cap of $8.56 billion, Valaris Ltd(VAL, Financial) with a market cap of $5.64 billion, and ChampionX Corp(CHX, Financial) with a market cap of $7.29 billion. Despite the intense competition, Cactus Inc's market cap of $3.59 billion demonstrates its significant presence in the industry.
Conclusion
In conclusion, Cactus Inc's impressive stock performance, strong profitability, and significant market presence make it a noteworthy player in the Oil & Gas industry. Despite some challenges in growth, the company's overall performance and potential for value make it a stock to watch. However, investors should also consider the competitive landscape and the company's growth prospects when making investment decisions.
