WD-40 Company (WDFC) AI Stock Analysis

Compare

320 Followers

WDFC Dividends

Top Page

WD-40 Company

(NASDAQ:WDFC)

69Neutral

WD-40 Company scores a 69, reflecting its strong financial performance and favorable earnings call insights, counterbalanced by bearish technical indicators and a high valuation. The company's strategic focus and operational improvements present potential for future growth, though investors should remain cautious of its current market momentum and valuation metrics.

WD-40 Company (WDFC) vs. S&P 500 (SPY)

Market Cap

$3.17B

Dividend Yield1.56%

Average Volume (3M)136.88K

Price to Earnings (P/E)37.0

Beta (1Y)0.27

Revenue Growth8.71%

EPS Growth24.92%

CountryUS

Employees644

SectorBasic Materials

Sector Strength60

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)2.19

Shares Outstanding13,545,364

10 Day Avg. Volume79,275

30 Day Avg. Volume136,884

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.05

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit10.50

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$322.00

Price Target Upside37.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

WD-40 Company Business Overview & Revenue Model

Company DescriptionWD-40 Company (WDFC) is a global consumer products company dedicated to delivering unique, high-value, and easy-to-use solutions for a wide range of maintenance needs. Headquartered in San Diego, California, the company is best known for its flagship product, WD-40 Multi-Use Product, a versatile lubricant with applications across various sectors, including automotive, industrial, and household. WD-40 Company operates in the maintenance, repair, and overhaul (MRO) market, developing and marketing lubricants, hand cleaners, and household products under various brands.

How the Company Makes MoneyWD-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.

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

WD-40 Company Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price234.65

Price Trends

50DMA

233.30

Positive

100DMA

235.54

Negative

200DMA

247.90

Negative

Market Momentum

MACD

0.36

Negative

RSI

57.52

Neutral

STOCH

91.30

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDFC, the sentiment is Neutral. The current price of 234.65 is above the 20-day moving average (MA) of 225.65, above the 50-day MA of 233.30, and below the 200-day MA of 247.90, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 91.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WDFC.

WD-40 Company Risk Analysis

WD-40 Company disclosed 21 risk factors in its most recent earnings report. WD-40 Company reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

WD-40 Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	74 Outperform	$4.02B	31.01	11.87%	1.74%	6.30%	41.01%
WDFC	69 Neutral	$3.17B	36.96	37.14%	1.56%	8.71%	24.92%
AVNT	69 Neutral	$3.25B	31.44	4.32%	2.92%	3.58%	-5.17%
IOSP	68 Neutral	$2.32B	65.09	3.02%	1.68%	-5.31%	-74.42%
OLN	64 Neutral	$2.36B	40.67	2.94%	3.92%	-1.13%	-81.74%
FUL	63 Neutral	$2.88B	27.03	6.35%	1.70%	0.99%	-27.62%
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%

* Basic Materials Sector Average

Performance Comparison

WDFC

WD-40 Company

234.65

6.07

2.66%

FUL

H.B. Fuller Company

54.79

-23.77

-30.26%

IOSP

Innospec

93.40

-36.19

-27.93%

OLN

Olin

21.41

-32.94

-60.61%

AVNT

Avient

37.33

-7.08

-15.94%

SXT

Sensient Technologies

95.33

20.19

26.87%

WD-40 Company Earnings Call Summary

Earnings Call Date:Apr 08, 2025

(Q2-2025)

% Change Since: -0.95%|

Next Earnings Date:Jul 15, 2025

Earnings Call Sentiment Positive

The earnings call presented a favorable outlook with strong sales growth and margin improvements, particularly in EIMEA. However, challenges remain in Asia Pacific and specific segments like home care. Overall, the company's strategic focus and operational improvements position it well for future growth.

Q2-2025 Updates

Positive Updates

Net Sales Growth

Net sales for the second quarter were $146.1 million, an increase of 5% compared to the previous year. Adjusting for foreign currency impacts, net sales would have been $150.9 million, reflecting a 9% increase.

Strong Performance in EIMEA

Sales in EIMEA increased by 10% to $59.6 million. Adjusted for currency impacts, the increase would have been 15%. Notable growth in Italy (28%), France (13%), and Benelux (27%).

Gross Margin Improvement

Gross margin improved to 54.6%, up from 52.4% last year, driven by lower costs of cans and specialty chemicals. Projected to be between 55% and 56% by the end of fiscal year 2025.

WD-40 Specialist Growth

Sales of WD-40 Specialist products increased by 12% year-to-date, with significant growth in EIMEA (14%) and the Americas (12%).

Employee Engagement

Employee engagement index increased to 94%, demonstrating strong workforce motivation and alignment with company goals.

Negative Updates

Challenges in Asia Pacific

Sales in Asia Pacific decreased by 1%, affected by an 8% decline in distributor markets due to foreign currency exchange rate impacts.

Decline in U.S. Sales

Sales of WD-40 multi-use products in the United States decreased by $2.7 million compared to the prior year quarter due to the timing of customer orders.

Home Care and Cleaning Products Decline

Sales of home care and cleaning products in the Americas decreased by 6%, and by 32% in EIMEA, as focus shifts to more profitable maintenance products.

Company Guidance

The WD-40 Company provided guidance for the second quarter of fiscal year 2025 with several key metrics highlighted. The company reported net sales of $146.1 million, marking a 5% increase from the prior year. Adjusting for foreign currency impacts, net sales would have reached $150.9 million, reflecting a 9% increase. The Americas segment saw a 3% sales increase to $65.5 million, while EIMEA sales grew 10% to $59.6 million, and Asia Pacific sales slightly declined by 1% to $21 million. The company's gross margin improved to 54.6% from 52.4% the previous year, and the adjusted EBITDA margin rose to 18% from 17%. WD-40 also raised its full-year gross margin guidance to between 55% and 56% and updated its non-GAAP diluted EPS guidance to a range of $5.25 to $5.55. The company highlighted strong volume growth, particularly in EIMEA, and emphasized its focus on expanding premium product sales and digital commerce.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.