Latest news with #WHD
Yahoo
3 days ago
- Business
- Yahoo
Cactus Forms JV With Baker Hughes, Boosts International Presence
Cactus Inc. WHD recently entered into an agreement with Baker Hughes Company BKR to acquire 65% of the Baker Hughes Surface Pressure Control Business. Cactus' subsidiary, Cactus Companies, LLC, signed an agreement with the subsidiaries of Baker Hughes to form a joint venture, where BKR will offer its surface pressure control (SPC) product line. Cactus will assume operational control of the joint venture. The total valuation for the transaction is approximately $344.5 million. Baker Hughes Surface Pressure Control Business is involved in designing, manufacturing, and servicing specialized surface pressure control solutions, which mainly include wellheads and production tree systems. This business operates primarily in international markets. BKR will hold a 35% stake in the joint venture after the transaction closes. This acquisition is expected to establish WHD as a leading player in oilfield equipment manufacturing, with a diverse geographical presence. Cactus noted that this acquisition will still allow it to maintain its position as a capital-light manufacturer of highly engineered pressure control equipment, which can be sold directly to end users. The acquisition is expected to benefit Cactus in terms of diversification, as nearly 85% of SPC's revenues come from the Middle East, allowing the company to generate diversified and stable revenues from its Pressure Control segment. Furthermore, SPC's limited dependence on the U.S. market for external sales makes its revenue growth more resilient to domestic market cycles. The deal is expected to be highly accretive to major financial metrics, providing increased earnings and cash flow growth for the company. Notably, SPC boasts a backlog of more than $600 million in product and aftermarket service orders as of year-end 2024. This is expected to benefit WHD's revenues and cash flow generation. Additionally, the company intends to maintain a conservative balance sheet. Cactus mentioned that the geographic footprint of the Baker Hughes Surface Pressure Control Business complements its existing operations in international markets and provides access to new markets that are not affected by tariffs. This applies to both its Pressure Control and Spoolable Technologies product lines. The expanded footprint is expected to support the company's continued growth and help stabilize its revenue profile across different market cycles. Currently, WHD carries a Zacks Rank #4 (Sell) while BKR carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK and Energy Transfer ET. While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs. Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Its pipeline network spans more than 130,000 miles across 44 states. With a presence in all the major U.S. production basins, ET's outlook seems positive. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energy Transfer LP (ET) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Flotek Industries, Inc. (FTK) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Cactus enters agreement to acquire 65% controlling interest in Baker Hughes SPC
Cactus (WHD) announced that its subsidiary Cactus Companies has entered into a definitive agreement with certain subsidiaries of Baker Hughes Company (BKR) to acquire 65% and assume operational control of the Baker Hughes Surface Pressure Control Business, SPC. SPC designs, manufactures and services specialized surface pressure control solutions, primarily wellheads and production tree equipment, for international markets. Business Highlights: Acquisition establishes Cactus' position as a premier, capital-light and geographically diversified oilfield equipment manufacturer; Transforms Cactus' geographic footprint, with ~85% of SPC revenues generated in the Middle East and no material U.S. external sales, providing for a more diverse and stable consolidated Cactus Pressure Control revenue profile through market cycles ; Greater revenue, earnings and cash flow visibility from the acquisition resulting from SPC's $600+ million product and aftermarket service backlog as of December 31, 2024; Highly accretive to financial metrics while maintaining a conservative balance sheet; A Joint Venture will be formed to hold SPC, and Baker Hughes will retain 35% ownership in the Joint Venture post-closing Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on WHD: Disclaimer & DisclosureReport an Issue Cactus Acquires Stake in Baker Hughes Business Baker Hughes, Cactus create joint venture for surface pressure control services Cactus price target lowered to $50 from $52 at JPMorgan Cactus Inc. Holds Annual Stockholders Meeting Cactus price target lowered to $52 from $54 at JPMorgan Sign in to access your portfolio
Observer
19-04-2025
- Observer
Oman to showcase rich cultural legacy today
The Sultanate of Oman will be showcasing its rich cultural heritage and civilisational legacy on World Heritage Day (WHD), an occasion established by the International Council on Monuments and Sites (ICOMOS) to raise awareness about the value of cultural heritage and the urgent need to protect it from natural and human-induced threats. The event will be held on Sunday. Every year on April 18, the world celebrates WHD and this year's theme is 'Heritage under Threat from Disasters and Conflicts: Preparedness and Learning from 60 years of ICOMOS Actions.' Oman joins this global celebration with the deep conviction that heritage is not just a remnant of the past, but a bridge connecting generations, grounding national identity and shaping a sustainable future, according to the Ministry of Heritage and Tourism. 'Oman has its own unique identity in terms of culture, heritage and language. Oman's language is present everywhere and deeply ingrained. The heritage and culture of Oman are not just owned, but lived; they are felt in the pulse of daily life,' a spokesperson from the MoHT said. Throughout history, the Sultanate of Oman has held a significant place on the map of Arabia as a vibrant crossroads where caravans converged, stories were woven and cities rose from stone and soil, pulsing with wisdom and life. This legacy lives on in architecture that tells the tales of its builders, not just through beauty, but through purpose. Ancient systems passed through generations, aflaj waters that seem to pause time, the aroma of morning coffee, silent cooperation and gatherings built on kindness.
Yahoo
10-02-2025
- Business
- Yahoo
Cactus, Inc.'s (NYSE:WHD) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Cactus (NYSE:WHD) has had a rough three months with its share price down 11%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Cactus' ROE. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. View our latest analysis for Cactus The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Cactus is: 20% = US$237m ÷ US$1.2b (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.20 in profit. So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To start with, Cactus' ROE looks acceptable. Especially when compared to the industry average of 12% the company's ROE looks pretty impressive. This certainly adds some context to Cactus' exceptional 29% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. We then compared Cactus' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 51% in the same 5-year period, which is a bit concerning. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. What is WHD worth today? The intrinsic value infographic in our free research report helps visualize whether WHD is currently mispriced by the market. Cactus' three-year median payout ratio to shareholders is 21%, which is quite low. This implies that the company is retaining 79% of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. Moreover, Cactus is determined to keep sharing its profits with shareholders which we infer from its long history of five years of paying a dividend. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 14% over the next three years. Despite the lower expected payout ratio, the company's ROE is not expected to change by much. On the whole, we feel that Cactus' performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
