WD-40 CO (WDFC) Stock Fundamental Analysis
NASDAQ:WDFC - Nasdaq - US9292361071 - Common Stock
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 quite expensive at the moment. It does show a decent growth rate. With these ratings, WDFC could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WDFC was profitable.
In the past year WDFC had a positive cash flow from operations.
In the past 5 years WDFC has always been profitable.
In the past 5 years WDFC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.84%, WDFC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Equity of WDFC (31.31%) is better than 75.00% of its industry peers.
WDFC has a better Return On Invested Capital (21.98%) than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WDFC is significantly above the industry average of 15.26%.
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
With a decent Profit Margin value of 11.74%, WDFC is doing good in 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 Operating Margin of 16.12%. This is in the better half of the industry: WDFC outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of WDFC has declined.
With an excellent Gross Margin value of 53.64%, WDFC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDFC is creating value.
Compared to 1 year ago, WDFC has less shares outstanding
Compared to 5 years ago, WDFC has less shares outstanding
WDFC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.66 indicates that WDFC is not in any danger for bankruptcy at the moment.
The Altman-Z score of WDFC (12.66) is better than 100.00% of its industry peers.
The Debt to FCF ratio of WDFC is 1.42, which is an excellent value as it means it would take WDFC, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, WDFC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that WDFC is not too dependend on debt financing.
WDFC's Debt to Equity ratio of 0.37 is amongst the best of the industry. WDFC outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 12.66 |
ROIC/WACC2.43
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.44 indicates that WDFC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.44, WDFC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
The Quick ratio of WDFC (1.75) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
WDFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.76%.
WDFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.90% yearly.
The Revenue has grown by 9.19% in the past year. This is quite good.
Measured over the past years, WDFC shows a small growth in Revenue. The Revenue has been growing by 6.88% on average per year.
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%9.32%
3.2 Future
Based on estimates for the next years, WDFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.45% on average per year.
The Revenue is expected to grow by 7.96% on average over the next years.
EPS Next Y6.89%
EPS Next 2Y9.8%
EPS Next 3Y10.45%
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y7.02%
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 44.75, which means the current valuation is very expensive for WDFC.
91.67% of the companies in the same industry are cheaper than WDFC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. WDFC is valued rather expensively when compared to this.
WDFC is valuated quite expensively with a Price/Forward Earnings ratio of 37.92.
WDFC's Price/Forward Earnings ratio is rather expensive when compared to the industry. WDFC is more expensive than 83.33% of the companies in the same industry.
WDFC is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.75 | ||
| Fwd PE | 37.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDFC is valued expensively inside the industry as 91.67% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, WDFC is valued expensively inside the industry as 91.67% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.65 | ||
| EV/EBITDA | 29.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WDFC does not grow enough to justify the current Price/Earnings ratio.
WDFC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.49
PEG (5Y)23.5
EPS Next 2Y9.8%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
WDFC has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 2.48, WDFC has a dividend in line with its industry peers.
WDFC's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of WDFC grows each year by 7.85%, which is quite nice.
WDFC has paid a dividend for at least 10 years, which is 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
67.56% of the earnings are spent on dividend by WDFC. 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%
WD-40 CO
NASDAQ:WDFC (1/21/2025, 8:00:02 PM)
Premarket: 232.59 -1 (-0.43%)233.59
+1.81 (+0.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners93.86%
Inst Owner Change-0.08%
Ins Owners0.65%
Ins Owner Change2.03%
Market Cap3.16B
Analysts80
Price Target307.02 (31.44%)
Short Float %8.79%
Short Ratio11.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)2.07%
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)0%
PT rev (3m)8.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.75 | ||
| Fwd PE | 37.92 | ||
| P/S | 5.24 | ||
| P/FCF | 41.65 | ||
| P/OCF | 39.51 | ||
| P/B | 13.98 | ||
| P/tB | 24.82 | ||
| EV/EBITDA | 29.72 |
EPS(TTM)5.22
EY2.23%
EPS(NY)6.16
Fwd EY2.64%
FCF(TTM)5.61
FCFY2.4%
OCF(TTM)5.91
OCFY2.53%
SpS44.58
BVpS16.71
TBVpS9.41
PEG (NY)6.49
PEG (5Y)23.5
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 | 12.66 |
F-Score8
WACC9.05%
ROIC/WACC2.43
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 Y6.89%
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%9.32%
Revenue Next Year6.78%
Revenue Next 2Y7.02%
Revenue Next 3Y7.96%
Revenue Next 5YN/A
EBIT growth 1Y2.1%
EBIT growth 3Y2.76%
EBIT growth 5Y3.18%
EBIT Next Year16.12%
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%