Is WHD a high-quality business?

AlphaMadera's AlphaQuality grade scores Cactus, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how WHD compares to a Buffett-style quality bar.

What is Cactus, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to WHD based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes WHD a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

WHD - Cactus, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $69.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B+ 79.1 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B+ 78.6

5yr Avg ROIC 13.3% 74/100
Operating Margin Trend +1.23 pp/yr 88/100

Capital Efficiency

Weight: 10%

B 74.3

5yr Avg ROE 11.1% 65/100
5yr Share-Count CAGR -2.4% 91/100

Growth Quality

Weight: 5%

A+ 96.0

5yr Revenue CAGR 25.2% 100/100
5yr EPS CAGR 30.5% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

A 91.7

5yr FCF Margin 19.2% 89/100
5yr FCF/NI Conversion 1.27x 95/100

Balance Sheet

Weight: 25%

A+ 99.6

Net Debt / EBITDA -1.29x 100/100
Interest Coverage (EBIT/Int) 60.94x 100/100
Altman Z-Score 4.71 99/100

Stability

Weight: 20%

D 36.7

EPS Volatility (σ/μ) 3.06 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

2 of 2 gurus held; 1 new buy; 1 added; 1 full exit.

Holders: 2
Avg Δ position: +54.5%
New buys: 1
Full exits: 1

Cooperman sold -100%
Dalio new
Greenblatt increased +54%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.