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Wd-40 Company (WDFC)
NASDAQ:WDFC
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WD-40 Company
(NASDAQ:WDFC)
Rating:71Outperform
Price Target:
$247.00
â–²(13.37% Upside)
WD-40 Company (WDFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.95B
Dividend Yield1.69%
Average Volume (3M)173.78K
Price to Earnings (P/E)34.3
Beta (1Y)0.14
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. Volume148,964
30 Day Avg. Volume173,785
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit9.99
Enterprise Value/Ebitda31.15
Forecast
1Y Price Target
$273.50Price Target Upside25.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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:Jul 10, 2025
(Q3-2025)
| % Change Since: -2.71%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance with record sales and growth in key product lines and regions, particularly in maintenance products and digital commerce. However, challenges in EIMEA and distributor markets, along with increased operating expenses, presented notable headwinds.Q3-2025 Updates
Positive Updates
Record Sales Quarter
Third quarter net sales reached $156.9 million, marking a record for the company and reflecting a 1% increase compared to the same period last year.
Maintenance Products Growth
Net sales of maintenance products increased by 2% year-over-year to $150.4 million, with a year-to-date increase of 6% reaching $435.2 million.
Strong Regional Performance
Sales in the Americas increased 4%, with a notable 7% increase in sales of WD-40 Multi-Use Product in the United States. Asia Pacific sales increased 7%, driven by a 19% increase in China.
Gross Margin Recovery
Gross margin improved to 56.2% in the third quarter, up from 53.1% last year, due to higher average selling prices and lower input costs.
Digital Commerce Growth
E-commerce sales were up 11% year-to-date, highlighting the success of the digital commerce strategy.
Improved Earnings Per Share
Diluted earnings per share increased by 5% to $1.54 in the third quarter compared to last year.
Negative Updates
Decline in EIMEA Sales
Total sales in EIMEA declined 5% in the third quarter, with a 6% decrease in sales of WD-40 Multi-Use Product, primarily in Turkey and the Middle East.
Challenges in Distributor Markets
Sales in distributor markets like Turkey and the Middle East faced variability and operational changes, leading to disruptions and a $3.9 million impact.
Homecare and Cleaning Sales Decline
Homecare and cleaning product sales declined in all regions, notably by 9% in Asia Pacific and $1.2 million in EIMEA.
Higher Operating Expenses
Cost of doing business was 38% of net sales, up from 34% last year, driven by higher employee-related expenses and incentive compensation accruals.
Company Guidance
During the WD-40 Company Third Quarter Fiscal Year 2025 Earnings Conference Call, the company reported net sales of $156.9 million, a 1% increase from the previous year, marking a record sales quarter. Adjusted for foreign currency impacts, net sales would have been $158.6 million, indicating a 2% increase. Sales in maintenance products reached $150.4 million, a 2% year-over-year increase, while year-to-date maintenance products sales hit $435.2 million, a 6% increase, aligning with the company's mid- to high single-digit growth targets. Sales in the Americas increased by 4% to $78.2 million, with a 7% increase when adjusted for currency impacts. In contrast, sales in the EIMEA region declined by 5% to $56.7 million. Asia Pacific saw a sales increase of 7% to $22 million. The company achieved a gross margin of 56.2%, up 310 basis points from the previous year, and full-year gross margin is projected between 55% and 56%. WD-40 also updated its fiscal year 2025 guidance, projecting net sales growth of 6% to 9%, operating income between $96 million and $101 million, and diluted earnings per share between $5.30 and $5.60.WD-40 Company Financial Statement Overview
Summary
WD-40 Company exhibits 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
217.88
Price Trends
227.86
Negative
230.21
Negative
239.81
Negative
Market Momentum
-2.41
Negative
45.57
Neutral
80.85
Negative
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 217.88 is above the 20-day moving average (MA) of 216.57, below the 50-day MA of 227.86, and below the 200-day MA of 239.81, indicating a neutral trend. The MACD of -2.41 indicates Negative momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.95B | 34.27 | 36.00% | 1.69% | 6.52% | 24.81% | |
70 Neutral | $3.01B | 25.44 | 5.09% | 3.25% | 3.28% | 1.69% | |
69 Neutral | $4.95B | 36.74 | 12.18% | 1.41% | 4.95% | 53.63% | |
68 Neutral | $3.03B | 30.53 | 5.62% | 1.63% | -0.09% | -37.60% | |
58 Neutral | $2.02B | 108.01 | 1.55% | 2.01% | -5.45% | -87.13% | |
55 Neutral | $2.17B | 41.89 | -0.69% | 4.27% | 1.49% | -105.20% | |
44 Neutral | C$915.00M | -8.74 | -0.23% | 2.71% | 20.34% | -40.71% |
* Basic Materials Sector Average
Performance Comparison
WDFC
WD-40 Company
217.88
-24.00
-9.92%
FUL
H.B. Fuller Company
56.24
-20.95
-27.14%
IOSP
Innospec
81.17
-21.95
-21.29%
OLN
Olin
18.73
-20.90
-52.74%
AVNT
Avient
32.86
-10.81
-24.75%
SXT
Sensient Technologies
116.00
46.28
66.38%
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.