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WD-40 Company (WDFC)
:WDFC
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WD-40 Company
(NASDAQ:WDFC)
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Rating:73Outperform
Price Target:
$244.00
▲(26.38% Upside)
WD-40 Company shows strong financial performance and strategic focus on core products, but faces technical challenges and valuation concerns. The earnings call was positive overall, with notable growth in key regions, though some operational challenges persist.
WD-40 Company (WDFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend Yield1.9%
Average Volume (3M)148.46K
Price to Earnings (P/E)29.5
Beta (1Y)0.17
Revenue Growth4.98%
EPS Growth30.84%
CountryUS
Employees644
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.56
Shares Outstanding13,527,835
10 Day Avg. Volume125,111
30 Day Avg. Volume148,455
Financial Highlights & Ratios
PEG Ratio8.84
Price to Book (P/B)15.45
Price to Sales (P/S)6.03
P/FCF Ratio40.56
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
WD-40 Company Business Overview & Revenue Model
Company DescriptionWD-40 Company (WDFC) is a global consumer products company known for its flagship product, WD-40 Multi-Use Product, which serves as a lubricant, rust preventative, and cleaner. The company operates primarily in the consumer and industrial sectors, offering a variety of cleaning, protecting, and lubricating products under several brands, including WD-40, 3-IN-ONE, and X-14. With a focus on innovation and quality, WD-40 Company caters to a diverse customer base, including households, automotive, and industrial markets.
How the Company Makes MoneyWD-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 Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 14, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth, significant improvements in gross margin, and strategic progress through divestitures. However, the company faced challenges in The Americas and did not fully meet growth targets in Asia Pacific. Despite increased costs, the overall sentiment is positive due to the strategic focus on high-margin products and operational efficiencies.Q4-2025 Updates
Positive Updates
Record Sales Growth
WD-40 Company reported consolidated net sales of $163 million for the fourth quarter and $620 million for the full fiscal year, each reflecting approximately 5% growth compared to the prior year.
Gross Margin Improvement
The company delivered a gross margin of 55.1% for the full fiscal year, surpassing their target and representing a significant improvement from previous years.
Strong Performance in EMEA and Asia Pacific
Sales in the EMEA region grew 7%, while Asia Pacific saw a 28% increase driven by strong demand in markets like Indonesia, Malaysia, and Singapore.
Strategic Divestitures
The company completed the divestiture of its UK Home Care and Cleaning product businesses, allowing a sharper focus on higher growth, higher margin maintenance products.
Operational Excellence
Achieved global on-time delivery of 96.4% and significant cost reductions through initiatives like packaging enhancements and logistics efficiencies.
Negative Updates
Sales Decline in The Americas
Sales in The Americas decreased by 2% due to lower sales in Latin America and macroeconomic challenges, especially in Mexico.
Challenges in Meeting Growth Targets
While Asia Pacific sales grew 6% for the full fiscal year, this was below the company's long-term target of 10-13% annual growth.
Cost of Doing Business
The cost of doing business increased by 9% for the full fiscal year, pushing it above the target range due to strategic investments and the loss of revenues from divestitures.
Company Guidance
During the WD-40 Company's fourth-quarter and full fiscal year 2025 earnings call, detailed guidance for the next fiscal year was provided, emphasizing strategic priorities and expected performance metrics. For fiscal year 2026, the company projected net sales growth of 5-9%, with anticipated net sales ranging between $630 million and $655 million, adjusted for foreign currency impacts. Gross margin is expected to be between 55.5% and 56.5%, while advertising and promotion investment is projected to remain around 6% of net sales. Operating income is forecasted to be between $103 million and $110 million, representing a growth of 5-12% over the pro forma 2025 results. Diluted earnings per share are expected to range from $5.75 to $6.15, based on an estimated 13.4 million weighted average shares outstanding, also reflecting a growth of 5-12%. The guidance assumes no major economic changes, but notes that unforeseen events could impact these projections.WD-40 Company Financial Statement Overview
Summary
WD-40 Company demonstrates robust financial health with strong revenue growth, effective cost management, and substantial cash flow generation. The balance sheet reflects reduced leverage and improved equity positioning, supporting long-term stability.Income Statement
WD-40 Company has shown strong revenue growth with a noticeable increase in Total Revenue from $408.5M in 2020 to $612.5M in TTM (Trailing-Twelve-Months) 2025. The Gross Profit Margin has remained robust, indicating effective cost management, while the Net Profit Margin improved due to increased net income. Both EBIT and EBITDA margins reflect healthy operational efficiency, supporting a positive outlook.85
Very Positive
Balance Sheet
The balance sheet indicates a stable financial position with a decreasing Debt-to-Equity Ratio from 0.95 in 2020 to 0.07 in TTM 2025, reflecting reduced leverage. Return on Equity has improved, demonstrating effective use of equity to generate profits. The Equity Ratio has increased, highlighting a stronger equity base compared to total assets over the years.78
Positive
Cash Flow
WD-40 has shown impressive cash flow management with consistent Free Cash Flow growth, especially from negative in 2022 to $81.2M in TTM 2025. The Operating Cash Flow to Net Income ratio remains strong, indicating efficient conversion of profits into cash. The positive Free Cash Flow to Net Income ratio also underscores strong cash generation capabilities.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 612.50M | 590.56M | 537.25M | 518.82M | 488.11M | 408.50M |
| Gross Profit | 336.26M | 315.23M | 274.22M | 254.76M | 263.74M | 223.02M |
| EBITDA | 107.88M | 105.25M | 98.93M | 95.14M | 95.91M | 85.66M |
| Net Income | 86.54M | 69.64M | 65.99M | 67.33M | 70.23M | 60.71M |
Balance Sheet | ||||||
| Total Assets | 455.95M | 449.04M | 437.97M | 434.30M | 430.20M | 362.64M |
| Cash, Cash Equivalents and Short-Term Investments | 51.68M | 46.70M | 48.14M | 37.84M | 85.96M | 56.46M |
| Total Debt | 18.65M | 102.83M | 128.52M | 152.31M | 122.80M | 120.42M |
| Total Liabilities | 198.89M | 218.51M | 227.79M | 245.67M | 229.82M | 202.32M |
| Stockholders Equity | 257.06M | 230.53M | 210.18M | 188.62M | 200.38M | 160.31M |
Cash Flow | ||||||
| Free Cash Flow | 81.17M | 87.83M | 91.52M | -5.70M | 69.66M | 53.36M |
| Operating Cash Flow | 85.19M | 92.03M | 98.39M | 2.60M | 84.71M | 72.66M |
| Investing Cash Flow | -3.48M | -9.73M | -6.22M | -7.69M | -14.46M | -18.95M |
| Financing Cash Flow | -75.11M | -83.94M | -85.05M | -38.01M | -40.75M | -26.71M |
WD-40 Company Technical Analysis
Positive
193.07
Price Trends
200.72
Negative
210.88
Negative
222.26
Negative
Market Momentum
-0.79
Negative
51.19
Neutral
45.02
Neutral
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 193.07 is below the 20-day moving average (MA) of 195.75, below the 50-day MA of 200.72, and below the 200-day MA of 222.26, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.67B | 29.53 | 36.39% | 1.90% | 4.98% | 30.84% | |
67 Neutral | $3.57B | 57.32 | 7.39% | ― | 19.12% | ― | |
62 Neutral | $3.09B | 27.48 | 6.05% | 1.60% | -1.30% | -36.69% | |
62 Neutral | $967.42M | 21.64 | 3.67% | 3.49% | 5.35% | -1.43% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $2.29B | ― | -0.64% | 1.42% | 0.08% | -107.33% | |
48 Neutral | $2.23B | 42.19 | 2.67% | 4.12% | 4.68% | -62.80% |
* Basic Materials Sector Average
WDFC
WD-40 Company
198.28
-82.68
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SCL
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PRM
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24.86
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76.56%
WD-40 Company Corporate Events
M&A TransactionsBusiness Operations and Strategy
WD-40 Sells UK Homecare Business to Supreme Imports
Positive
Sep 2, 2025
On August 29, 2025, WD-40 Company completed the sale of its UK homecare and cleaning product businesses, including the 1001 and 1001 Carpet Fresh brands, to Supreme Imports Ltd for up to £5.6 million ($7.5 million). This strategic divestiture allows WD-40 to focus on its core maintenance products, aiming for higher growth and margins. The transaction includes trademarks, intellectual property, and inventory, with no transfer of facilities or employees. The company plans to use the proceeds to pay down short-term debt and for general corporate purposes, reflecting its commitment to optimizing its portfolio.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.