NasdaqGS:WDFC

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has WD-40's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WDFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

WDFC

1.1%

US Household Products

0.06%

US Market


1 Year Return

4.7%

WDFC

23.9%

US Household Products

19.3%

US Market

Return vs Industry: WDFC underperformed the US Household Products industry which returned 23.9% over the past year.

Return vs Market: WDFC underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

WDFCIndustryMarket
7 Day-0.9%1.1%0.06%
30 Day-1.4%0.8%1.7%
90 Day-0.2%5.7%9.0%
1 Year6.2%4.7%27.0%23.9%21.8%19.3%
3 Year80.1%72.0%48.0%35.8%49.5%39.9%
5 Year151.7%132.4%73.8%49.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is WD-40's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WD-40 undervalued compared to its fair value and its price relative to the market?

47.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WDFC ($188.74) is trading above our estimate of fair value ($61.58)

Significantly Below Fair Value: WDFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WDFC is poor value based on its PE Ratio (47.7x) compared to the Household Products industry average (28x).

PE vs Market: WDFC is poor value based on its PE Ratio (47.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: WDFC is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: WDFC is overvalued based on its PB Ratio (17.7x) compared to the US Household Products industry average (4x).


Next Steps

Future Growth

How is WD-40 forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDFC's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: WDFC's earnings (10.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: WDFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WDFC's revenue (6.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WDFC's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WDFC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has WD-40 performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDFC has high quality earnings.

Growing Profit Margin: WDFC's current net profit margins (13%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: WDFC's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: WDFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WDFC had negative earnings growth (-16.7%) over the past year, making it difficult to compare to the Household Products industry average (-14%).


Return on Equity

High ROE: WDFC's Return on Equity (37.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WD-40's financial position?


Financial Position Analysis

Short Term Liabilities: WDFC's short term assets ($149.2M) exceed its short term liabilities ($81.0M).

Long Term Liabilities: WDFC's short term assets ($149.2M) exceed its long term liabilities ($90.5M).


Debt to Equity History and Analysis

Debt Level: WDFC's debt to equity ratio (61.8%) is considered high.

Reducing Debt: WDFC's debt to equity ratio has increased from 61.3% to 61.8% over the past 5 years.

Debt Coverage: WDFC's debt is well covered by operating cash flow (76.5%).

Interest Coverage: WDFC's interest payments on its debt are well covered by EBIT (37.6x coverage).


Balance Sheet

Inventory Level: WDFC has a high level of physical assets or inventory.

Debt Coverage by Assets: WDFC's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is WD-40's current dividend yield, its reliability and sustainability?

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: WDFC's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WDFC's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: WDFC's dividends per share have been stable in the past 10 years.

Growing Dividend: WDFC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.1%), WDFC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Garry Ridge (63yo)

22.3yrs

Tenure

US$3,079,841

Compensation

Mr. Garry O. Ridge serves as Chairman of the Board at WD-40 Company since December 10, 2019. He has been the Chief Executive Officer at WD-40 Company since October 1, 1997 and served as its President from  ...


CEO Compensation Analysis

Compensation vs Market: Garry's total compensation ($USD3.08M) is below average for companies of similar size in the US market ($USD4.88M).

Compensation vs Earnings: Garry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Garry Ridge
Chairman & CEO22.3yrsUS$3.08m0.68% $17.7m
Steven Brass
President & COO0.7yrsUS$769.88k0.026% $683.7k
Jay Rembolt
CFO, VP of Finance & Treasurer11.8yrsUS$933.82k0.29% $7.4m
Richard Clampitt
Corporate Secretary6.1yrsUS$678.40k0.048% $1.2m
William Noble
Managing Director of Europe24.1yrsUS$730.76k0.031% $801.7k
Rae Partlo
Principal Accounting Officer0.2yrsno data0.0030% $77.6k
Wendy Kelley
Director of Investor Relations & Corporate Communications0yrsno datano data
Geoffrey Holdsworth
Managing Director of Asia-Pacific23.1yrsUS$623.03k0.023% $587.0k
Patricia Olsem
Divisional President of The Americas0.7yrsno data0.014% $361.9k
Stanley Sewitch
Vice President of Global Organisation Development8.1yrsUS$601.91k0.046% $1.2m

8.1yrs

Average Tenure

61yo

Average Age

Experienced Management: WDFC's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Garry Ridge
Chairman & CEO22.3yrsUS$3.08m0.68% $17.7m
Daniel Pittard
Independent Director3.7yrsUS$138.94k0.013% $344.3k
Neal Schmale
Lead Independent Director0.2yrsUS$142.94k0.079% $2.0m
Daniel Carter
Independent Director3.9yrsUS$146.94kno data
David Pendarvis
Independent Director2.2yrsUS$136.27kno data
Gregory Sandfort
Independent Director8.3yrsUS$140.94k0.039% $1.0m
Trevor Mihalik
Independent Director0.2yrsno data0.0068% $177.0k
Anne Saunders
Independent Director0.9yrsUS$113.94kno data
Eric Etchart
Independent Director3.2yrsUS$137.61k0.0073% $188.9k
Melissa Claassen
Independent Director4.9yrsUS$138.94kno data

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: WDFC's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WDFC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WD-40 Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WD-40 Company
  • Ticker: WDFC
  • Exchange: NasdaqGS
  • Founded: 1953
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$2.587b
  • Shares outstanding: 13.71m
  • Website: https://www.wd40company.com

Number of Employees


Location

  • WD-40 Company
  • 9715 Businesspark Avenue
  • San Diego
  • California
  • 92131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980
WD1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

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 offers multi-purpose maintenance products, including aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name for various consumer uses and industrial applications; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bicycle maintenance products comprising wet and dry chain lubricants, chain cleaners and degreasers, and foaming wash products for avid and recreational cyclists, bike enthusiasts, and mechanics under the WD-40 Bike brand name. It also provides 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 offers automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol carpet stain removers, and a 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 in Australia; and liquid mildew stain removers and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, online retailers, and industrial distributors and suppliers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:36
End of Day Share Price2020/02/20 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.