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Wd-40 Company (WDFC)
NASDAQ:WDFC
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WD-40 Company
(NASDAQ:WDFC)
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Rating:73Outperform
Price Target:
$244.00
â–²(22.59% 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
$2.69B
Dividend Yield1.86%
Average Volume (3M)125.20K
Price to Earnings (P/E)31.3
Beta (1Y)0.12
Revenue Growth6.52%
EPS Growth24.81%
CountryUS
Employees644
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.54
Shares Outstanding13,533,864
10 Day Avg. Volume186,253
30 Day Avg. Volume125,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit9.99
Enterprise Value/Ebitda31.15
Forecast
1Y Price Target
$300.00Price Target Upside50.72% 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 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:Jul 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a record sales quarter with strong growth in the Americas and Asia Pacific, alongside an impressive improvement in gross margin. However, challenges were noted in the EIMEA region with declines in sales, particularly due to operational changes in the Middle East. The cost of doing business also rose, impacting overall profitability. Despite these challenges, the call maintained a generally positive tone with confidence in future growth.Q3-2025 Updates
Positive Updates
Record Sales Quarter
The company reported third quarter net sales of $156.9 million, a 1% increase compared to the same period last year, marking a record sales quarter.
Strong Performance in Americas
Sales in the Americas increased 4% in the third quarter to $78.2 million, driven by a 7% increase in sales of WD-40 Multi-Use Product in the United States.
Gross Margin Improvement
Gross margin improved to 56.2% in the third quarter, up from 53.1% last year, representing an improvement of 310 basis points.
Strong Growth in Asia Pacific
Sales in Asia Pacific increased 7% in the third quarter, with a 19% increase in China driven by successful promotional programs.
WD-40 Specialist Growth
Year-to-date, sales of WD-40 Specialist products were $59.8 million, up 11% compared to the same period last year.
Negative Updates
Sales Decline in EIMEA
Total sales in EIMEA declined 5% in the third quarter to $56.7 million, primarily due to a 6% decrease in sales of WD-40 Multi-Use Product.
Decreased Sales in Canada
Sales in Canada decreased 6% compared to the prior year quarter due to changes in distribution and reduced promotional activity.
Impact of Operational Changes in Middle East
Sales in the Middle East were impacted by operational changes, resulting in short-term disruptions as customers adapt to the new supply chain.
Increased Cost of Doing Business
The cost of doing business increased to 38% of net sales, up from 34% in the same period last year, driven by higher employee-related expenses and timing differences for incentive compensation accrual.
Company Guidance
During the WD-40 Company Third Quarter Fiscal Year 2025 Earnings Conference Call, the company reported a record net sales of $156.9 million, reflecting a 1% year-over-year increase. Adjusting for foreign currency impacts, net sales would have been $158.6 million, a 2% increase. Maintenance product sales reached $150.4 million, growing 2% from the previous year. The Americas segment reported a 4% increase in sales to $78.2 million, with a notable 7% rise in U.S. sales due to promotional activity. EIMEA sales declined by 5%, mainly due to a 6% decrease in the WD-40 Multi-Use Product sales, impacted by operational changes in the Middle East and Turkey. Asia Pacific sales grew by 7% to $22 million, driven by a 19% increase in China. The company reported a gross margin of 56.2%, an improvement from 53.1% last year, with contributions from higher selling prices and lower costs. The guidance for fiscal year 2025 was updated, projecting net sales growth between 6% and 9%, with operating income between $96 million and $101 million, and diluted EPS expected to be between $5.30 and $5.60.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
Negative
199.04
Price Trends
214.83
Negative
225.34
Negative
230.46
Negative
Market Momentum
-4.32
Positive
30.20
Neutral
5.19
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 199.04 is below the 20-day moving average (MA) of 210.50, below the 50-day MA of 214.83, and below the 200-day MA of 230.46, indicating a bearish trend. The MACD of -4.32 indicates Positive momentum. The RSI at 30.20 is Neutral, neither overbought nor oversold. The STOCH value of 5.19 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.69B | 31.31 | 36.00% | 1.86% | 6.52% | 24.81% | |
70 Neutral | $3.01B | 25.42 | 5.01% | 3.29% | 3.28% | 1.69% | |
68 Neutral | $4.05B | 30.08 | 11.65% | 1.72% | 4.95% | 53.63% | |
63 Neutral | $1.93B | 102.84 | 1.49% | 2.10% | -5.45% | -87.13% | |
60 Neutral | $3.14B | 27.93 | 5.87% | 1.57% | -1.30% | -36.69% | |
54 Neutral | $2.75B | -197.85 | -0.73% | 3.34% | 1.49% | -105.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
WDFC
WD-40 Company
199.04
-54.75
-21.57%
FUL
H.B. Fuller Company
58.14
-20.07
-25.66%
OLN
Olin
23.96
-22.58
-48.52%
KWR
Quaker Chemical
133.28
-32.62
-19.66%
SCL
Stepan Company
47.23
-28.04
-37.25%
PRM
Perimeter Solutions
21.48
8.03
59.70%
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.