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Cactus, Inc. (WHD)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$56.61 - $150.16$86.56
Multi-Stage$38.61 - $42.19$40.37
Blended Fair Value$63.46
Current Price$39.47
Upside60.78%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS51.33%0.00%0.470.420.370.300.240.060.440.000.030.17
YoY Growth--11.81%12.74%26.28%23.44%303.86%-86.67%0.00%-100.00%-83.20%0.00%
Dividend Yield--1.03%0.85%0.90%0.52%0.78%0.51%1.23%0.00%0.14%0.84%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)172.86
(-) Cash Dividends Paid (M)36.65
(=) Cash Retained (M)136.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34.5721.6112.96
Cash Retained (M)136.21136.21136.21
(-) Cash Required (M)-34.57-21.61-12.96
(=) Excess Retained (M)101.64114.60123.25
(/) Shares Outstanding (M)71.6371.6371.63
(=) Excess Retained per Share1.421.601.72
LTM Dividend per Share0.510.510.51
(+) Excess Retained per Share1.421.601.72
(=) Adjusted Dividend1.932.112.23
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$56.61$86.56$150.16
Upside / Downside43.42%119.30%280.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)172.86184.10196.07208.81222.38236.84243.94
Payout Ratio21.20%34.96%48.72%62.48%76.24%90.00%92.50%
Projected Dividends (M)36.6564.3795.53130.47169.55213.15225.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)58.4459.0059.55
Year 2 PV (M)78.7680.2681.77
Year 3 PV (M)97.67100.47103.33
Year 4 PV (M)115.25119.68124.24
Year 5 PV (M)131.56137.91144.51
PV of Terminal Value (M)2,283.872,394.182,508.72
Equity Value (M)2,765.552,891.513,022.12
Shares Outstanding (M)71.6371.6371.63
Fair Value$38.61$40.37$42.19
Upside / Downside-2.19%2.27%6.89%

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