Cactus Inc. (WHD) exhibits 37.0% gross margins and 15.4% return on invested capital within Consumer Discretionary (Oil and Gas Field Machinery), balanced against a 18.2x enterprise multiple and 4.8% implied options volatility.
Sustained 37.0% gross profitability converts into 23.2% operating margin and 15.4% ROIC, outpacing sector cost of capital.
ROIC: 15.4% // GM: 37.0%YoY revenue trajectory of -4.5% paired with 4.00% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -4.5% // FCF YLD: 4.00%Altman Z-Score of 9.22 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 9.22 // F-SCORE: 7/9Trading at 31.6x trailing P/E (29.4x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 31.6x // EV/EBITDA: 18.2xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $65.70 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Oil and Gas Field Machinery require continuous execution to defend 15.4% net margins.
NET MARGIN: 15.4% // D/E: 0.15x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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