CactusWHD -3.52%98 Gross Margin % is 28.73% as of Mar. 2026, which is 20% below its 10-year median of 36.12. GuruFocus rates WHD with a GF Score™ of 98/100 and a GF Value™ of $63.89 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 867 Oil & Gas companies, Cactus ranks better than 61.82% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Cactus's Gross Profit for the
three
months ended in Mar. 2026 was $112 Mil. Cactus's Revenue for the
three
months ended in Mar. 2026 was $388 Mil. Therefore, Cactus's Gross Margin % for the quarter that ended in Mar. 2026 was 28.73%.
The historical rank and industry rank for Cactus's Gross Margin % or its related term are showing as below:
WHD'
s Gross Margin % Range Over the Past 10 Years
Min: 19.23 Med: 36.12 Max: 40.11
Current: 33.97
During the past 11 years, the highestGross Margin % of Cactus was 40.11%. The lowest was 19.23%. And the median was 36.12%.
WHD's Gross Margin % is ranked better than 61.82% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs WHD: 33.97
Cactus had a gross margin of 28.73% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Cactus was 5.20% per year.
Cactus (NYSE:WHD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cactus had a gross margin of 28.73% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cactus Gross Margin % Related Terms
Cactus Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cactus's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Equipment & Services subindustry, Cactus's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cactus Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cactus's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cactus's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cactus (WHD) has a Gross Margin % of 28.73% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cactus and its competitors. This is 20% below median its historical median of 36.12. Over the past decade, Cactus' Gross Margin % has ranged from 19.23 to 40.11. According to the industry distribution chart, Cactus ranks #331 out of 867 companies in the Oil & Gas industry, placing it in the top 38.2%.
Is Cactus' Gross Margin % too high?
Cactus' current Gross Margin % of 28.73% is 20% below median its 10-year median of 36.12. Over the past 10 years, this metric has ranged from a low of 19.23 to a high of 40.11. The Oil & Gas industry median Gross Margin % is 25.70. Cactus' value of 28.73% is 11.8% above this industry median. Based on the distribution chart, Cactus ranks #331 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Cactus has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cactus' Gross Margin % compare to SEI and USAC?
According to the Oil & Gas industry distribution chart, Cactus ranks #331 out of 867 companies for Gross Margin %. This puts Cactus in the upper half of its industry. The industry median Gross Margin % is 25.70. Cactus' value of 28.73% is 11.8% above this benchmark. Historically, Cactus' own Gross Margin % has ranged from 19.23 to 40.11 over the past decade. While the company's 10-year median is 36.12 vs. the industry median of 25.70, Cactus has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cactus's current Gross Margin % of 28.73% is 11.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cactus and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cactus's current Gross Margin % is 28.73%, which is 20% below median its own 10-year median of 36.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cactus stock overvalued right now?
Based on GuruFocus' analysis, Cactus (WHD) is currently considered Modestly Undervalued. The stock's GF Value™ is $63.89, compared to a current price of $50.98 — trading 20.2% below its estimated fair value. The current Gross Margin % is 28.73%, which is 20% below median its 10-year median of 36.12 and 11.8% above the Oil & Gas industry median of 25.70. Cactus' overall GF Score™ is 98/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cactus (WHD), the current Gross Margin % is 28.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cactus (WHD) Overvalued in 2026?
Based on GuruFocus' analysis, Cactus stock appears to be undervalued.
The current stock price of $50.98 is trading 20.2% below its estimated GF Value™ of $63.89.
GuruFocus considers Cactus to be Modestly Undervalued.
Key valuation signals for WHD:
Gross Margin %: 28.73% (20% below median its 10-year median of 36.12)
GF Value™: $63.89 vs. price of $50.98 (20.2% below fair value)
Industry Position: 11.8% above the Oil & Gas median (#331 of 867)
No single metric tells the full story. See the WHD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cactus Inc is engaged in the designing, manufacturing, and sale of wellheads and pressure control equipment. Its principal products include Cactus SafeDrill wellhead systems, conventional wellheads, and production valves among others. The company also provides mission-critical field services, including service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. It sells or rents its products principally for onshore unconventional oil and gas wells that are utilized during the drilling, completion (including fracturing), and production. It has two operating segments; Pressure Control, which generates key revenue and Spoolable Technologies.
98GF Score
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