CactusWHD -3.52%98 Operating Margin % is 12.75% as of Mar. 2026, which is 50% below its 10-year median of 25.42. GuruFocus rates WHD with a GF Score™ of 98/100 and a GF Value™ of $63.82 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 916 Oil & Gas companies, Cactus ranks better than 73.25% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cactus's Operating Income for the
three
months ended in Mar. 2026 was $50 Mil. Cactus's Revenue for the
three
months ended in Mar. 2026 was $388 Mil. Therefore, Cactus's Operating Margin % for the quarter that ended in Mar. 2026 was 12.75%.
Good Sign:
Cactus Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Cactus's Operating Margin % or its related term are showing as below:
WHD'
s Operating Margin % Range Over the Past 10 Years
Min: 6.85 Med: 25.42 Max: 32.66
Current: 19.49
WHD's Operating Margin % is ranked better than 73.25% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs WHD: 19.49
Cactus's 5-Year Average Operating Margin % Growth Rate was 5.70% per year.
Cactus's Operating Income for the
three
months ended in Mar. 2026 was $50 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $231 Mil.
Cactus (NYSE:WHD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cactus Operating Margin % Related Terms
Cactus Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cactus's Operating 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.
WHD vs SEI, USAC, OII: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Cactus's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cactus's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cactus's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cactus's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Cactus (WHD) has a Operating Margin % of 12.75% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cactus and its competitors. This is 50% below median its historical median of 25.42. Over the past decade, Cactus' Operating Margin % has ranged from 6.85 to 32.66. According to the industry distribution chart, Cactus ranks #245 out of 916 companies in the Oil & Gas industry, placing it in the top 26.7%.
Is Cactus' Operating Margin % too high?
Cactus' current Operating Margin % of 12.75% is 50% below median its 10-year median of 25.42. Over the past 10 years, this metric has ranged from a low of 6.85 to a high of 32.66. The Oil & Gas industry median Operating Margin % is 6.86. Cactus' value of 12.75% is 85.9% above this industry median. Based on the distribution chart, Cactus ranks #245 out of 916 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' Operating Margin % compare to SEI and USAC?
According to the Oil & Gas industry distribution chart, Cactus ranks #245 out of 916 companies for Operating Margin %. This puts Cactus in the upper half of its industry. The industry median Operating Margin % is 6.86. Cactus' value of 12.75% is 85.9% above this benchmark. Historically, Cactus' own Operating Margin % has ranged from 6.85 to 32.66 over the past decade. While the company's 10-year median is 25.42 vs. the industry median of 6.86, 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cactus's current Operating Margin % of 12.75% is 85.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cactus and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cactus's current Operating Margin % is 12.75%, which is 50% below median its own 10-year median of 25.42. 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 $63.82, compared to a current price of $50.98 — trading 20.1% below its estimated fair value. The current Operating Margin % is 12.75%, which is 50% below median its 10-year median of 25.42 and 85.9% above the Oil & Gas industry median of 6.86. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cactus (WHD), the current Operating Margin % is 12.75% 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 20.1% below its estimated GF Value™ of $63.82.
GuruFocus considers Cactus to be Modestly Undervalued.
Key valuation signals for WHD:
Operating Margin %: 12.75% (50% below median its 10-year median of 25.42)
GF Value™: $63.82 vs. price of $50.98 (20.1% below fair value)
Industry Position: 85.9% above the Oil & Gas median (#245 of 916)
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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