WD-40 Company (WDFC) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: 1.87%
• Average Volume (3M): 147.34K
• Price to Earnings (P/E): 38.2
• 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: 151,388
• 30 Day Avg. Volume: 147,341
• 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: 1.02
• Enterprise Value/Revenue: 4.74
• Enterprise Value/Gross Profit: 8.56
• Enterprise Value/Ebitda: 26.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.08
• Revenue Forecast (FY): $649.25M

• Rating: 78 Outperform
• Price Target: $244.00 ▲(14.11% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong underlying financial quality (high margins, improving growth, healthier leverage) and bullish technical momentum. It is tempered by a rich valuation (high P/E) and earnings-call risks around cost pressures, APAC distributor-driven volatility, and divestiture uncertainty.

Positive Factors

Strong brand and recurring demand

WD‑40's core multi‑use product and complementary specialist/homecare portfolio create recurring, low‑churn demand and deep retail and industrial placement. Durable brand recognition supports repeat purchases, broad distribution and resilience across economic cycles, aiding steady revenue over months.

High and stable profitability

Sustained gross margins (~55%) and mid‑teens net margins provide persistent earnings power and buffer against input cost swings. Robust margins support reinvestment, dividends and buybacks while enabling strong ROE, making operating results more durable even if top‑line growth moderates.

Premiumization and direct channel momentum

Rapid e‑commerce growth and higher‑margin premium formats shift mix toward channels and SKUs with stronger margins and data visibility. This structural premiumization plus direct‑market focus supports sustainable margin expansion and closer customer relationships over the coming quarters.

Negative Factors

Distributor exposure and APAC volatility

Significant reliance on third‑party distributors in APAC creates persistent revenue visibility risk and quarter‑to‑quarter swings from timing and inventory adjustments. This structural channel exposure can mute growth and complicate forecasting until distributor patterns normalize or direct channels gain share.

Cash‑flow variability and working‑capital sensitivity

While earnings are healthy, uneven conversion to operating cash and episodes of negative FCF indicate working‑capital sensitivity and timing risk. Persistent cash‑flow volatility can constrain capital allocation flexibility for M&A, buybacks and reinvestment across several quarters.

Elevated cost of doing business

Higher operating cost ratios from employee and other expenses erode operating leverage and compress margins. If elevated cost structure persists, it reduces net income resiliency and requires sustained revenue mix improvement or efficiency actions to restore target profitability over the medium term.

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 makes money primarily by selling branded maintenance and homecare products to customers through a mix of retail and industrial distribution channels. Its core revenue stream is product sales of WD-40 Multi-Use Product, which is marketed for a wide range of uses (e.g., lubrication, rust protection, moisture displacement, and cleaning) and sold in multiple package formats (such as aerosol cans and other applicators) across geographies. A second major revenue stream comes from WD-40 Specialist products (a line of purpose-built lubricants, penetrants, degreasers, and related maintenance formulas) that typically target more specific use cases than the flagship multi-use product and are sold at different price points and merchandising placements. The company also generates revenue from homecare products (notably its cleaner brands), sold largely through consumer retail channels. The revenue model is centered on brand-driven consumer and trade demand: WD-40 Company invests in marketing, category management, and customer relationships to support sell-through, while using third-party retailers, distributors, and e-commerce platforms to reach end users. Sales are influenced by factors such as distribution breadth (presence in large retailers and industrial suppliers), product mix (multi-use vs. specialty vs. homecare), geographic expansion, pricing and promotional strategy, and the ability to maintain brand recognition and repeat purchase behavior.

WD-40 Company Financial Statement Overview

Summary

Strong profitability and improving growth (TTM gross margin ~55%, net margin ~15%, TTM revenue growth ~15%) plus a strengthening leverage profile and very strong ROE. Main risk is cash-flow variability and recent softness in free-cash-flow growth and operating cash flow vs. net income.

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	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	620.91M	619.99M	590.56M	537.25M	518.82M	488.11M
Gross Profit	344.09M	341.34M	315.23M	274.22M	254.76M	263.74M
EBITDA	112.32M	113.26M	105.25M	98.93M	95.14M	95.91M
Net Income	89.52M	90.99M	69.64M	65.99M	67.33M	70.23M
Balance Sheet
Total Assets	459.66M	475.81M	449.04M	437.97M	434.30M	430.20M
Cash, Cash Equivalents and Short-Term Investments	48.58M	58.13M	46.70M	48.14M	37.84M	85.96M
Total Debt	101.11M	97.70M	102.83M	128.52M	154.01M	131.77M
Total Liabilities	195.60M	207.66M	218.51M	227.79M	245.67M	229.82M
Stockholders Equity	264.07M	268.15M	230.53M	210.18M	188.62M	200.38M
Cash Flow
Free Cash Flow	78.21M	83.40M	87.83M	91.52M	-5.70M	69.66M
Operating Cash Flow	82.98M	87.92M	92.03M	98.39M	2.60M	84.71M
Investing Cash Flow	-2.56M	-2.39M	-9.73M	-6.22M	-7.69M	-14.46M
Financing Cash Flow	-88.71M	-74.12M	-83.94M	-85.05M	-38.01M	-40.75M

WD-40 Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 213.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 213.83 is below the 20-day moving average (MA) of 232.54, below the 50-day MA of 227.27, and above the 200-day MA of 213.25, indicating a neutral trend. The MACD of -3.87 indicates Positive momentum. The RSI at 31.32 is Neutral, neither overbought nor oversold. The STOCH value of 13.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDFC.

WD-40 Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDFC	78 Outperform	$2.88B	38.21	34.72%	1.87%	4.98%	30.84%
FUL	63 Neutral	$2.69B	20.94	7.98%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCL	61 Neutral	$1.01B	23.10	3.80%	3.33%	5.35%	-1.43%
KWR	54 Neutral	$1.99B	-964.31	-0.18%	1.37%	0.08%	-107.33%
OLN	52 Neutral	$2.70B	-55.77	-2.18%	3.91%	4.68%	-62.80%
PRM	50 Neutral	$3.09B	-7.30	-17.79%	―	19.12%	―

WD-40 Company Corporate Events

WD-40 Company Adds Finance Veteran to Board

On February 19, 2026, WD-40 Company announced the appointment of veteran finance executive Ken Plunk to its board of directors, effective February 18, 2026, and named him to the Audit and Finance Committees. To accommodate the move, the board increased its size from nine to 10 directors, signaling an effort to deepen financial oversight and governance capabilities as the company pursues global expansion of its brands.

Plunk, 62, brings extensive experience from prior senior roles at J&J Snack Foods Corp., Wal-Mart Stores, Inc., The Home Depot, and The Coca-Cola Company, as well as current board service at Milo’s Tea Company. He will receive a fully vested restricted stock unit award valued at about $125,000 and cash compensation for his board and committee roles through the December 2026 annual meeting, aligning his interests with shareholders as WD-40 strengthens board expertise in finance, strategy, and risk management.

The most recent analyst rating on (WDFC) stock is a Buy with a $283.00 price target. To see the full list of analyst forecasts on WD-40 Company stock, see the WDFC Stock Forecast page.