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Wd-40 Company (WDFC)
NASDAQ:WDFC
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WD-40 Company
(NASDAQ:WDFC)
71Outperform
WD-40 Company (WDFC) vs. S&P 500 (SPY)
Market Cap
$3.00B
Dividend Yield1.61%
Average Volume (3M)154.03K
Price to Earnings (P/E)35.3
Beta (1Y)0.25
Revenue Growth8.71%
EPS Growth24.92%
CountryUS
Employees644
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)6.27
Shares Outstanding13,545,364
10 Day Avg. Volume196,295
30 Day Avg. Volume154,034
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)N/A
Price to Sales (P/S)5.18
Price to Cash Flow (P/CF)52.30
P/FCF Ratio52.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$322.00Price Target Upside45.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 exhibits strong financial performance with consistent revenue and profitability growth. The balance sheet is stable with manageable leverage, and cash flows are healthy, indicating robust cash generation capability and financial resilience.Income Statement
WD-40 Company demonstrates a strong financial performance with a consistent increase in revenue and profitability. The gross profit margin and net profit margin are robust, indicating efficient cost management. The revenue growth rate is positive, reflecting a solid upward trajectory. EBIT and EBITDA margins are healthy, showcasing operational efficiency.87
Very Positive
Balance Sheet
The balance sheet of WD-40 Company is stable, with a reasonable debt-to-equity ratio that suggests manageable leverage. Return on equity is commendable, indicating effective use of equity capital to generate profits. The equity ratio shows a solid foundation of stockholders' equity in the capital structure, enhancing financial stability.75
Positive
Cash Flow
The cash flow statement reveals strong free cash flow growth and a healthy operating cash flow to net income ratio, signifying robust cash generation capability. The free cash flow to net income ratio reinforces the company's ability to convert earnings into cash, supporting future operations and investments.82
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 603.64M | 590.56M | 537.25M | 518.82M | 488.11M | 408.50M | Gross Profit |
| 321.00M | 315.23M | 274.22M | 254.76M | 263.74M | 223.02M | EBIT |
| 97.29M | 96.35M | 89.72M | 87.33M | 88.84M | 77.22M | EBITDA |
| 103.89M | 105.25M | 98.93M | 95.14M | 95.91M | 85.66M | Net Income Common Stockholders |
| 71.09M | 69.64M | 65.99M | 67.33M | 70.23M | 60.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 48.95M | 46.70M | 48.14M | 37.84M | 85.96M | 56.46M | Total Assets |
| 268.97M | 449.04M | 437.97M | 434.30M | 430.20M | 362.64M | Total Debt |
| 21.43M | 102.83M | 128.52M | 152.31M | 122.80M | 120.42M | Net Debt |
| -27.52M | 56.13M | 80.38M | 114.47M | 36.84M | 63.96M | Total Liabilities |
| 85.06M | 218.51M | 227.79M | 245.67M | 229.82M | 202.32M | Stockholders Equity |
| 183.91M | 230.53M | 210.18M | 188.62M | 200.38M | 160.31M |
| Cash Flow | Free Cash Flow | ||||
| 75.94M | 87.83M | 91.52M | -5.70M | 69.66M | 53.36M | Operating Cash Flow |
| 80.05M | 92.03M | 98.39M | 2.60M | 84.71M | 72.66M | Investing Cash Flow |
| -9.63M | -9.73M | -6.22M | -7.69M | -14.46M | -18.95M | Financing Cash Flow |
| -63.53M | -83.94M | -85.05M | -38.01M | -40.75M | -26.71M |
WD-40 Company Technical Analysis
Negative
222.03
Price Trends
236.84
Negative
245.30
Negative
249.09
Negative
Market Momentum
0.92
Negative
57.02
Neutral
88.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDFC, the sentiment is Negative. The current price of 222.03 is below the 20-day moving average (MA) of 236.52, below the 50-day MA of 236.84, and below the 200-day MA of 249.09, indicating a bearish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.09B | 24.73 | 11.79% | 2.25% | 6.92% | 33.08% | |
71 Outperform | $3.00B | 35.30 | 37.14% | 1.61% | 8.71% | 24.92% | |
65 Neutral | $2.17B | 61.05 | 3.02% | 1.79% | -5.31% | -74.42% | |
65 Neutral | $2.79B | 16.57 | 7.32% | 3.45% | 3.11% | 123.46% | |
61 Neutral | $2.81B | 26.13 | 6.35% | 1.72% | 0.99% | -27.62% | |
58 Neutral | $2.26B | 21.61 | 5.10% | 4.07% | -4.29% | -74.85% | |
47 Neutral | $2.43B | -3.06 | -22.76% | 3.59% | 4.02% | -29.07% |
* Basic Materials Sector Average
Performance Comparison
WDFC
WD-40 Company
222.03
-9.56
-4.13%
FUL
H.B. Fuller Company
53.73
-21.27
-28.36%
IOSP
Innospec
87.47
-32.81
-27.28%
OLN
Olin
20.43
-32.44
-61.36%
AVNT
Avient
31.13
-9.78
-23.91%
SXT
Sensient Technologies
74.11
6.55
9.70%
WD-40 Company Earnings Call Summary
Earnings Call Date: Apr 8, 2025 | % Change Since: -6.68% | 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.Highlights
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.
Lowlights
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.