WD-40 Company (WDFC) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: 1.87%
• Average Volume (3M): 162.24K
• Price to Earnings (P/E): 36.8
• Beta (1Y): -0.03
• 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: 116,575
• 30 Day Avg. Volume: 162,239
• 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: 1.03
• Enterprise Value/Revenue: 5.42
• Enterprise Value/Gross Profit: 9.78
• Enterprise Value/Ebitda: 29.95
• 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: $276.00 ▲(15.81% 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

Margin Sustainability

Consistently high gross (~55%) and net (~15%) margins indicate durable earnings power for a specialty chemicals/consumer-products business. Elevated margins support reinvestment in marketing, R&D, and dividends, and provide a buffer versus input-cost swings, aiding long-term profitability.

Improving Balance Sheet & ROE

Decreasing leverage and rising equity alongside a mid-30% ROE signal efficient capital use and a more resilient balance sheet. This strengthens capacity for buybacks, dividends, and selective M&A, while reducing refinancing risk and increasing strategic flexibility over a multi-quarter horizon.

Premiumization and E‑commerce Momentum

Accelerating e-commerce (22% growth) and a rising share of premiumized formats (~49%) structurally lift average selling prices and margins. These trends support sustained direct-to-consumer engagement, higher repeat purchase economics, and improved category placement versus commodity competitors over coming quarters.

Negative Factors

Cash-Flow Volatility

Although FCF conversion has historically been strong, recent negative FCF growth and operating cash below net income show working-capital and timing sensitivity. This volatility can constrain discretionary capital allocation and raises risk if profit margins compress or macro conditions deteriorate.

APAC Distributor Exposure

Significant reliance on marketing distributors in APAC creates quarter-to-quarter volatility from order timing and inventory swings. Regional distributor weakness reduces visibility into sustainable end‑market demand and can amplify growth sensitivity in higher-growth international markets over multiple quarters.

Divestiture Uncertainty

An active but uncertain sale of the Home Care & Cleaning business creates structural ambiguity for future revenue mix, margins, and capital deployment. Unclear timing or terms can complicate planning, comparability of results, and the use of proceeds for reinvestment or shareholder returns.

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 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 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: Positive
• Last Price: 238.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 238.32 is above the 20-day moving average (MA) of 235.88, above the 50-day MA of 215.32, and above the 200-day MA of 213.78, indicating a bullish trend. The MACD of 8.03 indicates Positive momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$3.27B	36.82	36.41%	1.87%	4.98%	30.84%
SCL	66 Neutral	$1.50B	33.45	3.67%	3.33%	5.35%	-1.43%
PRM	64 Neutral	$3.99B	63.99	7.39%	―	19.12%	―
FUL	63 Neutral	$3.63B	24.37	7.93%	1.54%	-1.30%	-36.69%
KWR	62 Neutral	$3.02B	-341.48	-0.64%	1.37%	0.08%	-107.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OLN	52 Neutral	$2.84B	―	-2.22%	3.91%	4.68%	-62.80%

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.

WD-40 Company Announces Dividend Increase at Annual Meeting

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.