Examining WD-40 Company’s (NASDAQ:WDFC) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess WDFC’s latest performance announced on 30 November 2018 and compare these figures to its longer term trend and industry movements.
Commentary On WDFC’s Past Performance
WDFC’s trailing twelve-month earnings (from 30 November 2018) of US$65m has jumped 22% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.2%, indicating the rate at which WDFC is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is only attributable to an industry uplift, or if WD-40 has seen some company-specific growth.
In terms of returns from investment, WD-40 has invested its equity funds well leading to a 43% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 23% exceeds the US Household Products industry of 8.4%, indicating WD-40 has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for WD-40’s debt level, has increased over the past 3 years from 22% to 34%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as WD-40 gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research WD-40 to get a better picture of the stock by looking at:
- 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.
- Financial Health: Are WDFC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 November 2018. This may not be consistent with full year annual report figures.
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.