WD-40 Company (WDFC) AI Stock Analysis

• Market Cap: $3.33B
• Dividend Yield: 1.48%
• Average Volume (3M): 124.09K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.31
• Revenue Growth: 8.71%
• EPS Growth: 24.92%
• Country: US
• Employees: 644
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 2.19
• Shares Outstanding: 13,545,364
• 10 Day Avg. Volume: 76,312
• 30 Day Avg. Volume: 124,094
• PEG Ratio: 1.81
• Price to Book (P/B): 12.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.66
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 9.76
• Enterprise Value/Ebitda: 7.63
• 1Y Price Target: $322.00
• Price Target Upside: 31.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

WD-40 Company demonstrates robust financial performance and favorable earnings call outcomes, with strong revenue and margin growth. While technical indicators show upward momentum, the high P/E ratio suggests a need for valuation caution. The company's strategic focus and operational improvements, especially in EIMEA, are key positives, though challenges in certain markets warrant monitoring.

WD-40 Company Business Overview & Revenue Model

Company Description

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name; and specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand, as well as various products under the WD-40 Bike brand name. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. The company was founded in 1953 and is headquartered in San Diego, California.

How the Company Makes Money

WD-40 Company generates revenue primarily through the sale of its range of maintenance products, with the WD-40 Multi-Use Product being the core revenue driver. The company sells its products in over 176 countries through a diverse distribution network that includes hardware stores, automotive retailers, and industrial suppliers. WD-40 Company's revenue streams also include sales from other brands such as 3-IN-ONE Oil, GT85, and 2000 Flushes. The company has established significant partnerships and distribution agreements worldwide, which contribute to its earnings by expanding its market reach and enhancing brand visibility. Additionally, WD-40 invests in marketing and innovation to maintain its competitive edge and drive sales growth.

WD-40 Company Financial Statement Overview

Summary

WD-40 Company showcases strong financial health with stable revenue growth, robust profitability margins, and conservative leverage. Despite a decline in cash flow growth, the company's prudent financial management and effective utilization of shareholder funds indicate a solid position within the industry.

Income Statement

WD-40 Company has demonstrated strong income statement performance, with consistent revenue growth and robust profitability margins. The TTM revenue growth rate is impressive at 3.4%, supported by a gross profit margin of 53.9% and a net profit margin of 14.0%. Additionally, EBIT and EBITDA margins remain healthy at 16.3% and 17.4% respectively, indicating efficient operational management. However, the slight deceleration in revenue growth compared to previous years is a point to monitor.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.16, indicating conservative leverage. The equity ratio stands at 52.8%, highlighting a strong equity base relative to total assets. Furthermore, the return on equity is commendable at 35.3%, reflecting effective utilization of shareholder funds. The reduction in total debt over recent periods enhances financial stability, though the relatively moderate cash position should be observed for liquidity management.

Cash Flow

WD-40's cash flow situation is solid, with a free cash flow growth rate of -25.0% due to fluctuations in operating cash flow. The operating cash flow to net income ratio is 0.82, suggesting consistent cash generation relative to accounting profits. Moreover, with a free cash flow to net income ratio of 0.77, the company maintains healthy cash reserves for reinvestment and debt servicing. The decline in free cash flow growth is a concern to monitor.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
610.63M	590.56M	537.25M	518.82M	488.11M	408.50M
	Gross Profit
329.12M	315.23M	274.22M	254.76M	263.74M	223.02M
	EBIT
99.63M	96.35M	89.72M	87.33M	88.84M	77.22M
	EBITDA
106.52M	105.25M	98.93M	95.14M	95.91M	85.66M
	Net Income Common Stockholders
85.40M	69.64M	65.99M	67.33M	70.23M	60.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.99M	46.70M	48.14M	37.84M	85.96M	56.46M
	Total Assets
458.26M	449.04M	437.97M	434.30M	430.20M	362.64M
	Total Debt
124.25M	102.83M	128.52M	152.31M	122.80M	120.42M
	Net Debt
71.26M	56.13M	80.38M	114.47M	36.84M	63.96M
	Total Liabilities
216.12M	218.51M	227.79M	245.67M	229.82M	202.32M
	Stockholders Equity
242.14M	230.53M	210.18M	188.62M	200.38M	160.31M
Cash Flow		Free Cash Flow
65.88M	87.83M	91.52M	-5.70M	69.66M	53.36M
	Operating Cash Flow
70.05M	92.03M	98.39M	2.60M	84.71M	72.66M
	Investing Cash Flow
-9.79M	-9.73M	-6.22M	-7.69M	-14.46M	-18.95M
	Financing Cash Flow
-60.98M	-83.94M	-85.05M	-38.01M	-40.75M	-26.71M

WD-40 Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDFC, the sentiment is Positive. The current price of 245.66 is above the 20-day moving average (MA) of 231.29, above the 50-day MA of 233.46, and below the 200-day MA of 247.29, indicating a neutral trend. The MACD of 3.25 indicates Negative momentum. The RSI at 67.00 is Neutral, neither overbought nor oversold. The STOCH value of 89.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WDFC.

WD-40 Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDFC	79 Outperform	$3.33B	39.17	37.14%	1.48%	8.71%	24.92%
SXT	74 Outperform	$4.00B	31.21	11.87%	1.74%	6.30%	41.01%
AVNT	70 Outperform	$3.46B	34.94	4.32%	2.79%	3.58%	-5.17%
IOSP	66 Neutral	$2.22B	84.06	2.21%	1.74%	-7.91%	-81.73%
FUL	63 Neutral	$3.09B	28.71	6.35%	1.58%	0.99%	-27.62%
OLN	58 Neutral	$2.43B	41.64	2.94%	3.79%	-1.13%	-81.74%
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.61%