WD-40 CO (WDFC) Stock Fundamental Analysis
NASDAQ:WDFC - Nasdaq - US9292361071 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WDFC. WDFC was compared to 12 industry peers in the Household Products industry. WDFC gets an excellent profitability rating and is at the same time showing great financial health properties. WDFC is valied quite expensively at the moment, while it does show a decent growth rate. This makes WDFC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WDFC was profitable.
WDFC had a positive operating cash flow in the past year.
WDFC had positive earnings in each of the past 5 years.
WDFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WDFC (15.84%) is better than 91.67% of its industry peers.
WDFC's Return On Equity of 31.31% is fine compared to the rest of the industry. WDFC outperforms 75.00% of its industry peers.
WDFC has a Return On Invested Capital of 21.98%. This is amongst the best in the industry. WDFC outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WDFC is above the industry average of 15.69%.
The last Return On Invested Capital (21.98%) for WDFC is above the 3 year average (20.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 31.31% | ||
| ROIC | 21.98% |
ROA(3y)15.3%
ROA(5y)15.77%
ROE(3y)32.31%
ROE(5y)33.91%
ROIC(3y)20.62%
ROIC(5y)20.25%
1.3 Margins
Looking at the Profit Margin, with a value of 11.74%, WDFC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WDFC's Profit Margin has declined in the last couple of years.
WDFC has a better Operating Margin (16.12%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of WDFC has declined.
WDFC has a Gross Margin of 53.64%. This is amongst the best in the industry. WDFC outperforms 91.67% of its industry peers.
WDFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.12% | ||
| PM (TTM) | 11.74% | ||
| GM | 53.64% |
OM growth 3Y-3.57%
OM growth 5Y-3.47%
PM growth 3Y-6.42%
PM growth 5Y-2.2%
GM growth 3Y-0.4%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDFC is creating value.
Compared to 1 year ago, WDFC has less shares outstanding
The number of shares outstanding for WDFC has been reduced compared to 5 years ago.
Compared to 1 year ago, WDFC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.56 indicates that WDFC is not in any danger for bankruptcy at the moment.
WDFC's Altman-Z score of 12.56 is amongst the best of the industry. WDFC outperforms 100.00% of its industry peers.
WDFC has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
WDFC has a Debt to FCF ratio of 1.42. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
WDFC has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
WDFC has a better Debt to Equity ratio (0.37) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 12.56 |
ROIC/WACC2.48
WACC8.86%
2.3 Liquidity
A Current Ratio of 2.44 indicates that WDFC has no problem at all paying its short term obligations.
WDFC has a better Current ratio (2.44) than 75.00% of its industry peers.
WDFC has a Quick Ratio of 1.75. This is a normal value and indicates that WDFC is financially healthy and should not expect problems in meeting its short term obligations.
WDFC's Quick ratio of 1.75 is amongst the best of the industry. WDFC outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.76% over the past year.
The Earnings Per Share has been growing slightly by 1.90% on average over the past years.
Looking at the last year, WDFC shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
The Revenue has been growing slightly by 6.88% on average over the past years.
EPS 1Y (TTM)2.76%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%8.59%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%9.31%
3.2 Future
WDFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.45% yearly.
The Revenue is expected to grow by 7.96% on average over the next years.
EPS Next Y8.23%
EPS Next 2Y9.8%
EPS Next 3Y10.45%
EPS Next 5YN/A
Revenue Next Year7.5%
Revenue Next 2Y7.18%
Revenue Next 3Y7.96%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.89, which means the current valuation is very expensive for WDFC.
Based on the Price/Earnings ratio, WDFC is valued more expensive than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, WDFC is valued a bit more expensive.
WDFC is valuated quite expensively with a Price/Forward Earnings ratio of 37.18.
83.33% of the companies in the same industry are cheaper than WDFC, based on the Price/Forward Earnings ratio.
WDFC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 37.18 |
4.2 Price Multiples
91.67% of the companies in the same industry are cheaper than WDFC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDFC indicates a rather expensive valuation: WDFC more expensive than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.88 | ||
| EV/EBITDA | 29.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WDFC may justify a higher PE ratio.
PEG (NY)5.33
PEG (5Y)23.04
EPS Next 2Y9.8%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
WDFC has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
WDFC's Dividend Yield is comparable with the industry average which is at 2.57.
Compared to the average S&P500 Dividend Yield of 2.27, WDFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of WDFC grows each year by 7.85%, which is quite nice.
WDFC has been paying a dividend for at least 10 years, so it has a reliable track record.
WDFC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.85%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
WDFC pays out 67.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WDFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.56%
EPS Next 2Y9.8%
EPS Next 3Y10.45%
229.08
-1.85 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners93.86%
Inst Owner Change-3.26%
Ins Owners0.65%
Ins Owner Change2.03%
Market Cap3.10B
Analysts80
Price Target301.92 (31.8%)
Short Float %6.62%
Short Ratio9.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend3.48
Dividend Growth(5Y)7.85%
DP67.56%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2%
Min EPS beat(2)-10.01%
Max EPS beat(2)6.01%
EPS beat(4)3
Avg EPS beat(4)0.01%
Min EPS beat(4)-10.01%
Max EPS beat(4)6.01%
EPS beat(8)6
Avg EPS beat(8)5.79%
EPS beat(12)7
Avg EPS beat(12)3.63%
EPS beat(16)9
Avg EPS beat(16)1.19%
Revenue beat(2)2
Avg Revenue beat(2)2.29%
Min Revenue beat(2)2.06%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)1.47%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)4.25%
Revenue beat(8)6
Avg Revenue beat(8)1.22%
Revenue beat(12)7
Avg Revenue beat(12)-1.69%
Revenue beat(16)9
Avg Revenue beat(16)-0.16%
PT rev (1m)-1.66%
PT rev (3m)-1.66%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)1.25%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)3.63%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 37.18 | ||
| P/S | 5.14 | ||
| P/FCF | 40.88 | ||
| P/OCF | 38.78 | ||
| P/B | 13.72 | ||
| P/tB | 24.36 | ||
| EV/EBITDA | 29.41 |
EPS(TTM)5.22
EY2.28%
EPS(NY)6.16
Fwd EY2.69%
FCF(TTM)5.6
FCFY2.45%
OCF(TTM)5.91
OCFY2.58%
SpS44.55
BVpS16.7
TBVpS9.4
PEG (NY)5.33
PEG (5Y)23.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.84% | ||
| ROE | 31.31% | ||
| ROCE | 28.63% | ||
| ROIC | 21.98% | ||
| ROICexc | 26.22% | ||
| ROICexgc | 40.16% | ||
| OM | 16.12% | ||
| PM (TTM) | 11.74% | ||
| GM | 53.64% | ||
| FCFM | 12.58% |
ROA(3y)15.3%
ROA(5y)15.77%
ROE(3y)32.31%
ROE(5y)33.91%
ROIC(3y)20.62%
ROIC(5y)20.25%
ROICexc(3y)23.7%
ROICexc(5y)24.32%
ROICexgc(3y)36.12%
ROICexgc(5y)38.82%
ROCE(3y)26.85%
ROCE(5y)26.37%
ROICexcg growth 3Y-4.87%
ROICexcg growth 5Y-10.65%
ROICexc growth 3Y-2.12%
ROICexc growth 5Y-4.66%
OM growth 3Y-3.57%
OM growth 5Y-3.47%
PM growth 3Y-6.42%
PM growth 5Y-2.2%
GM growth 3Y-0.4%
GM growth 5Y-0.55%
F-Score8
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 37.69% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.98% | ||
| Profit Quality | 107.19% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 12.56 |
F-Score8
WACC8.86%
ROIC/WACC2.48
Cap/Depr(3y)74.6%
Cap/Depr(5y)137.82%
Cap/Sales(3y)1.2%
Cap/Sales(5y)2.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.76%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%8.59%
EPS Next Y8.23%
EPS Next 2Y9.8%
EPS Next 3Y10.45%
EPS Next 5YN/A
Revenue 1Y (TTM)9.19%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%9.31%
Revenue Next Year7.5%
Revenue Next 2Y7.18%
Revenue Next 3Y7.96%
Revenue Next 5YN/A
EBIT growth 1Y2.1%
EBIT growth 3Y2.76%
EBIT growth 5Y3.18%
EBIT Next Year15.65%
EBIT Next 3Y11.17%
EBIT Next 5YN/A
FCF growth 1Y1040.2%
FCF growth 3Y8.04%
FCF growth 5Y12.12%
OCF growth 1Y472.18%
OCF growth 3Y2.8%
OCF growth 5Y7.93%