Designs and manufactures wellhead equipment for oil and gas wells. Sells wellhead equipment to oil and gas companies. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 25% a year over the last 4 years. Every year shown ended in profit.
If every debt were paid off today, $456.8M would still be left in the vault — a solid cushion for hard times.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
The cash pile is strong; debt and other items pull the grade toward the middle.
Clearly below the class average.
There is growth, but not at top-of-the-class tempo.
The stock has been running stronger than the market lately.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
The net profit margin is 15% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 25% a year on average.
There is $494.6M in the vault; even if every debt were paid off, $456.8M would remain.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 36/100.
On our five-subject report card, WHD sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: WHD is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.