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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
▲(19.90% 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.
Positive Factors
Revenue Growth
The consistent increase in net sales indicates strong market demand and effective sales strategies, supporting long-term revenue growth.
Gross Margin Improvement
Improved gross margins reflect effective cost management and pricing strategies, enhancing profitability and competitive positioning.
Cash Flow Management
Strong cash flow management ensures financial flexibility and supports strategic investments, underpinning long-term business sustainability.
Negative Factors
Sales Decline in EIMEA
Declining sales in EIMEA could signal regional market challenges, potentially affecting overall revenue growth and market share.
Increased Cost of Doing Business
Rising operational costs can pressure profit margins, reducing financial efficiency and potentially impacting future profitability.
Operational Changes in Middle East
Operational disruptions in key regions may affect supply chain efficiency and customer relationships, posing risks to regional sales stability.
WD-40 Company (WDFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69B
Dividend Yield1.87%
Average Volume (3M)110.25K
Price to Earnings (P/E)30.9
Beta (1Y)0.08
Revenue Growth4.98%
EPS Growth30.84%
CountryUS
Employees644
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.28
Shares Outstanding13,527,835
10 Day Avg. Volume93,240
30 Day Avg. Volume110,247
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)10.91
Price to Sales (P/S)4.72
P/FCF Ratio35.09
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue4.24
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda23.87
Forecast
1Y Price Target
$300.00Price Target Upside47.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
WD-40 Company Business Overview & Revenue Model
Company DescriptionWD-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 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:Jan 08, 2026
(Q1-2026)
| Next Earnings Date:Apr 02, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operational and product-level performance (gross margin expansion, strong direct-market growth, double-digit growth in WD-40 Specialist and e-commerce, record employee engagement, and reaffirmed full-year guidance) offset by near-term headwinds concentrated in Asia Pacific distributor markets, elevated cost of doing business, and quarter-to-quarter profitability pressure (lower operating income, net income and EPS on a pro forma basis). Management emphasized timing-related distributor inventory adjustments and a confidence in a back-half rebound, but uncertainty around the home-care divestiture and above-target cost ratios temper the upbeat elements.Q1-2026 Updates
Positive Updates
Consolidated Revenue and Maintenance Product Growth
Net sales totaled $154.4 million, up 1% year-over-year; maintenance products (≈96% of sales) generated $148.9 million, up 2% YoY.
Direct Markets Strength
Direct markets accounted for 83% of global sales and maintenance-product sales in direct markets grew 8% in Q1, aligning with long-term growth targets.
WD-40 Specialist Outperformance
WD-40 Specialist sales were $22.5 million, up 18% YoY, signaling strong traction in the higher-margin product portfolio.
E-commerce and Premiumization Momentum
E-commerce sales increased 22% in Q1; premiumized formats (Smart Straw, EZ REACH) combined were up 4% and represent ~49% of WD-40 Multi-Use Product sales, supporting margin expansion.
Gross Margin Expansion
Reported gross margin was 56.2%, up 150 basis points sequentially and 140 basis points YoY (56.7% ex-assets held for sale). Drivers included ~110 bps from lower specialty chemical/can costs and ~60 bps from higher average selling prices.
Regional Wins — Americas, EMEA and China
Americas sales were $71.9 million (+4% YoY) with maintenance up 5%; EMEA sales (ex-divested business) were $58.7 million (+5% YoY) with WD-40 Specialist in EMEA up 27%; China grew ~8% driven by distribution expansion and promotions.
Operational and People Strength
Employee engagement index hit a record 95% and 97% reported active collaboration; global on-time supply chain performance was 97.6% while production capacity increased to support growth initiatives.
Capital Allocation and Guidance Reaffirmation
Company repurchased 39,500 shares for $7.8 million with ~ $22 million remaining authorization; board approved an increased quarterly dividend (transcript cites $1.20 per share) and management reaffirmed FY'26 pro forma guidance: net sales $630M–$655M (5–9% growth), gross margin 55.5–56.5%, operating income $103M–$110M (5–12% growth), diluted EPS $5.75–$6.15 (5–12% growth).
Negative Updates
Asia Pacific Distributor Weakness
Asia Pacific sales were $23.9 million, down 10% YoY (−$2.7M); WD-40 Multi-Use Product in APAC declined 12% and Asia distributor markets declined ~£3.3 million (≈33%) due to timing-related order/inventory adjustments.
Elevated Cost of Doing Business
Cost of doing business rose to 40% of net sales (vs. target 30–35%), increasing $4.6 million (8%) YoY; foreign exchange had an unfavorable impact of $1.3M and higher employee-related expenses accounted for ~$2.8M of the increase.
Profitability Pressures and EPS Decline
Adjusted EBITDA margin fell to 17% from 18% a year ago; operating income declined 7% to $23.3M; net income declined 8% to $17.5M; diluted EPS was $1.28, down 8% YoY. On a pro forma basis (excluding divested business) operating income and net income declined ~45%.
Home Care & Cleaning Divestiture Uncertainty and Impact
Sale process is active with multiple discussions but no certainty; divestiture continues to cloud comparability and results—company notes that if divestiture is not completed it would increase guidance by ~$12.5M in net sales, ~$3.6M in operating income and ~$0.20 EPS.
Regional Margin Headwinds
Asia Pacific gross margin decreased 70 bps to 58.9% (YoY) driven by lower ASPs linked to sales mix; filling/filling fees in EMEA negatively impacted gross margin by ~50 bps; company remains exposed to commodity, tariff and inflation risks.
Distributor-Driven Quarter-to-Quarter Volatility
Marketing distributors (~17% of sales) created notable quarter-to-quarter variability (timing of promotions and order patterns), contributing to the Q1 softness and uncertain near-term visibility in some markets.
Temporary Elevated Investments and Seasonal Costs
First-quarter spending (planning, travel, incremental headcount) pushed cost ratios above targets; A&P was 5.3% of sales (down from 5.5% YoY) but management expects A&P to return toward ~6% full-year guidance as planned brand investments occur.
Minor Reporting/Communication Inconsistencies
Transcript contains inconsistent figures for the quarterly dividend (Sara cited $1.20 per share while later commentary referenced $1.02), creating minor clarity issues in the call record.
Company Guidance
The company reaffirmed its FY2026 pro forma guidance, forecasting net sales of $630–$655 million (up 5–9% pro forma, after FX), gross margin of 55.5–56.5%, A&P investment around 6% of sales, operating income of $103–$110 million (up 5–12% pro forma), a tax rate of 22.5–23.5%, and diluted EPS of $5.75–$6.15 (based on ~13.4 million weighted average shares, up 5–12% pro forma); management expects to land the mid‑to‑high end of these ranges given back‑half initiatives, assumes no major macro shifts, excludes the Americas Home Care & Cleaning brands (held for sale), and noted that failure to divest would add ~ $12.5M sales, $3.6M operating income and ~$0.20 to full‑year EPS.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.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.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.| 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
Positive
203.50
Price Trends
198.12
Positive
201.46
Positive
215.05
Negative
Market Momentum
0.40
Positive
56.98
Neutral
54.76
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 203.5 is above the 20-day moving average (MA) of 201.66, above the 50-day MA of 198.12, and below the 200-day MA of 215.05, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 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 | $2.69B | 30.92 | 36.39% | 1.87% | 4.98% | 30.84% | |
66 Neutral | $1.13B | 25.56 | 3.67% | 3.33% | 5.35% | -1.43% | |
62 Neutral | $3.30B | 30.39 | 6.05% | 1.54% | -1.30% | -36.69% | |
62 Neutral | $4.23B | 69.55 | 7.39% | ― | 19.12% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $2.50B | -292.80 | -0.64% | 1.37% | 0.08% | -107.33% | |
52 Neutral | $2.45B | 48.64 | 2.67% | 3.91% | 4.68% | -62.80% |
* Basic Materials Sector Average
WDFC
WD-40 Company
203.50
-33.07
-13.98%
FUL
H.B. Fuller Company
63.26
2.95
4.89%
OLN
Olin
22.56
-7.36
-24.60%
KWR
Quaker Chemical
149.15
26.09
21.20%
SCL
Stepan Company
50.52
-7.98
-13.64%
PRM
Perimeter Solutions
29.30
16.67
131.99%
WD-40 Company Corporate Events
DividendsShareholder Meetings
WD-40 Company Announces Dividend Increase at Annual Meeting
Positive
Dec 16, 2025
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.
Executive/Board ChangesShareholder Meetings
WD-40 Company Director Trevor Mihalik Resigns
Neutral
Oct 14, 2025
On October 9, 2025, Trevor I. Mihalik announced his resignation from the Board of Directors of WD-40 Company, effective at the 2025 Annual Meeting of Stockholders scheduled for December 12, 2025. His decision was not due to any disagreements with the company, and he will continue to serve on the board and its committees until the meeting. Following his resignation, the board size will be reduced from 10 to 9 directors.
The most recent analyst rating on (WDFC) stock is a Buy with a $244.00 price target. To see the full list of analyst forecasts on WD-40 Company stock, see the WDFC Stock Forecast page.
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.