WD-40 Company (WDFC) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: 1.87%
• Average Volume (3M): 170.38K
• Price to Earnings (P/E): 33.3
• Beta (1Y): >-0.01
• Revenue Growth: 4.98%
• EPS Growth: 30.84%
• Country: US
• Employees: 644
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.28
• Shares Outstanding: 13,486,302
• 10 Day Avg. Volume: 124,117
• 30 Day Avg. Volume: 170,383
• PEG Ratio: 1.04
• Price to Book (P/B): 10.91
• Price to Sales (P/S): 4.72
• P/FCF Ratio: 35.09
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.12
• Enterprise Value/Gross Profit: 9.24
• Enterprise Value/Ebitda: 28.32
• 1Y Price Target: $300.00
• Price Target Upside: 32.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.08
• Revenue Forecast (FY): $649.25M

• Rating: 71 Outperform
• Price Target: $242.00 ▲(7.16% Upside)

The score is driven primarily by strong underlying financial quality (high margins, improving leverage, and accelerated TTM growth), tempered by uneven cash-flow dynamics. Technicals are neutral-to-slightly-positive but capped by trading below the 200-day average. Valuation is a notable headwind due to the premium P/E, while the earnings call was mixed: reaffirmed guidance and margin gains offset by APAC softness, elevated costs, and near-term earnings pressure.

Positive Factors

High profitability and strong ROE

Sustained ~55% gross margins and mid-teens net margins indicate durable pricing power and product mix advantage in specialty maintenance chemicals. Very strong ROE (mid-30s) shows efficient capital deployment, supporting reinvestment, dividends, and buybacks over the medium term.

Premiumization and digital/direct channel momentum

Double-digit growth in WD-40 Specialist and e-commerce, plus near-half share from premium formats, point to structural portfolio premiumization. This diversifies revenue, improves mix-driven margins, and reduces reliance on commodity-priced SKUs, supporting steadier midterm margin expansion.

Improving leverage and shareholder returns

Leverage trending down alongside growing equity provides financial flexibility. Combined buybacks and an increased dividend show disciplined capital allocation that returns cash to holders while preserving room for strategic investments or M&A over the next several quarters.

Negative Factors

Cash-flow variability and slightly negative FCF growth

While earnings are strong, operating cash flow lagging net income and recent slight declines in free cash flow indicate working-capital or timing volatility. Persistent cash-flow variability can constrain capital flexibility and make funding buybacks/dividend increases more sensitive to execution risk.

Asia Pacific distributor weakness and regional volatility

Significant APAC distributor order and inventory adjustments produced material YoY declines, highlighting exposure to distributor timing and local market execution. Regional volatility can depress growth and margins for multiple quarters until distribution and inventory normalization occurs.

Elevated cost of doing business pressuring margins

Structural cost ratios running above historical targets driven by higher employee-related expenses and FX pressures reduce operating leverage. If elevated cost base persists, it erodes operating income and makes margin expansion from premiumization harder to realize sustainably.

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 products in various markets around the world. The company's revenue model is based on a combination of direct sales to retailers, distributors, and end consumers, with a significant portion of their income derived from the sale of the WD-40 Multi-Use Product and its other branded offerings. Key revenue streams include retail sales through grocery stores, hardware stores, and online platforms, as well as partnerships with industrial suppliers. The company's global presence and strong brand recognition contribute to its earnings, allowing it to maintain a loyal customer base and expand into new markets.

WD-40 Company Financial Statement Overview

Summary

Strong profitability with ~55% gross margin and ~15% net margin, plus faster TTM revenue growth (~15%). Balance sheet looks resilient with improving leverage and very strong ROE. The main offset is cash-flow variability: operating cash flow lagging net income in TTM and slightly negative recent free-cash-flow growth.

Income Statement

WD-40 shows strong profitability for a specialty chemicals business, with TTM (Trailing-Twelve-Months) gross margin around 55% and net margin near 15%, supporting consistent earnings power. Revenue growth in TTM (Trailing-Twelve-Months) accelerated to ~15% versus mid-single-digit growth in the latest annual period, indicating improving momentum. Margins are generally stable over time, though EBITDA margin has drifted modestly lower versus earlier years, suggesting some cost pressure despite higher sales.

Balance Sheet

Leverage appears moderate and improving over time, with debt-to-equity trending down materially from higher levels in earlier years and sitting in a comfortable range recently. Equity has grown alongside assets, supporting balance sheet resilience. Return on equity is very strong (mid-30% range recently), which is a positive signal, although it also implies the company is highly efficient with capital and could be more sensitive if profitability were to soften.

Cash Flow

Cash generation is solid overall, with free cash flow close to net income in recent periods (roughly mid-90% conversion), indicating good earnings quality. However, free cash flow growth has been slightly negative recently, and operating cash flow is below net income in TTM (Trailing-Twelve-Months), pointing to some working-capital or timing headwinds. The 2022 annual period also showed a sharp cash flow downturn (very low operating cash flow and negative free cash flow), highlighting that cash generation can be volatile at times even when profits look healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	619.99M	590.56M	537.25M	518.82M	488.11M
Gross Profit	341.34M	315.23M	274.22M	254.76M	263.74M
EBITDA	113.26M	105.25M	98.93M	95.14M	95.91M
Net Income	90.99M	69.64M	65.99M	67.33M	70.23M
Balance Sheet
Total Assets	475.81M	449.04M	437.97M	434.30M	430.20M
Cash, Cash Equivalents and Short-Term Investments	58.13M	46.70M	48.14M	37.84M	85.96M
Total Debt	97.70M	102.83M	128.52M	154.01M	131.77M
Total Liabilities	207.66M	218.51M	227.79M	245.67M	229.82M
Stockholders Equity	268.15M	230.53M	210.18M	188.62M	200.38M
Cash Flow
Free Cash Flow	83.40M	87.83M	91.52M	-5.70M	69.66M
Operating Cash Flow	87.92M	92.03M	98.39M	2.60M	84.71M
Investing Cash Flow	-2.39M	-9.73M	-6.22M	-7.69M	-14.46M
Financing Cash Flow	-74.12M	-83.94M	-85.05M	-38.01M	-40.75M

WD-40 Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 225.83 is above the 20-day moving average (MA) of 205.07, above the 50-day MA of 200.55, and above the 200-day MA of 212.36, indicating a bullish trend. The MACD of 6.02 indicates Negative momentum. The RSI at 75.57 is Negative, neither overbought nor oversold. The STOCH value of 95.84 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	71 Outperform	$2.96B	33.30	36.41%	1.87%	4.98%	30.84%
SCL	66 Neutral	$1.27B	28.39	3.67%	3.33%	5.35%	-1.43%
PRM	64 Neutral	$3.92B	61.67	7.39%	―	19.12%	―
FUL	63 Neutral	$3.24B	21.72	7.93%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.62B	-304.06	-0.64%	1.37%	0.08%	-107.33%
OLN	53 Neutral	$2.60B	49.03	2.67%	3.91%	4.68%	-62.80%

WD-40 Company Corporate Events

WD-40 Company Announces Dividend Increase at Annual Meeting

On December 12, 2025, WD-40 Company held its Annual Meeting of Stockholders virtually, where over 88% of shares were represented. Key outcomes included the election of directors, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2026. Additionally, the company announced an 8% increase in its quarterly dividend, payable on January 30, 2026, and scheduled its first fiscal quarter 2026 earnings conference call for January 8, 2026.

The most recent analyst rating on (WDFC) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on WD-40 Company stock, see the WDFC Stock Forecast page.