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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of WD-40 Company (NASDAQ:WDFC), it is a financially-healthy , dividend-paying company with a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on WD-40 here.
Outstanding track record with adequate balance sheet and pays a dividend
WDFC delivered a bottom-line expansion of 19% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 43%, which is what investors like to see! WDFC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that WDFC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. WDFC seems to have put its debt to good use, generating operating cash levels of 0.68x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
WDFC is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For WD-40, I’ve put together three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for WDFC’s future growth? Take a look at our free research report of analyst consensus for WDFC’s outlook.
- Valuation: What is WDFC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WDFC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WDFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.