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

Fundamentals

Outstanding track record with adequate balance sheet.

Risks

  • WD-40 is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-0.9%

NasdaqGS:WDFC

2.1%

US Household Products

-0.7%

US Market


1 Year Return

7.0%

NasdaqGS:WDFC

35.8%

US Household Products

-0.5%

US Market

WDFC underperformed the Household Products industry which returned 35.9% over the past year.

WDFC outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

WDFCIndustryMarket
7 Day-0.9%2.1%-0.7%
30 Day3.4%3.2%-3.0%
90 Day13.4%10.0%0.9%
1 Year8.5%7.0%39.7%35.8%1.7%-0.5%
3 Year66.0%58.3%46.7%34.3%39.5%30.4%
5 Year189.1%166.3%71.6%47.5%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

37.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

WD-40's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

WD-40's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

WD-40 is overvalued based on earnings compared to the US Household Products industry average.

WD-40 is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

WD-40 is poor value based on expected growth next year.


Price Based on Value of Assets

WD-40 is overvalued based on assets compared to the US Household Products industry average.


Next Steps

Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

WD-40's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

WD-40's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

WD-40's revenue growth is positive but not above the United States of America market average.

WD-40's earnings growth is positive but not above the United States of America market average.

WD-40's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if WD-40 will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

WD-40's year on year earnings growth rate has been positive over the past 5 years.

WD-40's 1-year earnings growth exceeds its 5-year average (19% vs 10%)

WD-40's earnings growth has exceeded the US Household Products industry average in the past year (19% vs -7.1%).


Return on Equity

WD-40 made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

WD-40 used its assets more efficiently than the US Household Products industry average last year based on Return on Assets.


Return on Capital Employed

WD-40 has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is WD-40's financial position?


Financial Position Analysis

WD-40 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

WD-40's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

WD-40's level of debt (62.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (47.3% vs 62.6% today).

Debt is well covered by operating cash flow (61.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 26.5x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.33%

Current Dividend Yield


Dividend Yield and Payments Analysis

WD-40's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

WD-40's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of WD-40's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Garry Ridge (63yo)

21.8yrs

Tenure

US$2,429,992

Compensation

Mr. Garry O. Ridge has been the Chief Executive Officer at WD-40 Company since October 1, 1997 and served as its President from October 1, 1997 to June 24, 2019. Mr. Ridge serves as the Chief Executive Off ...


CEO Compensation Analysis

Garry's remuneration is lower than average for companies of similar size in United States of America.

Garry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.6yrs

Average Tenure

63.5yo

Average Age

The average tenure for the WD-40 management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.3yrs

Average Tenure

62yo

Average Age

The tenure for the WD-40 board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$135,05519 Apr 19
Steven Brass
EntityIndividual
Role
President
President & COO
Shares822
Max PriceUS$164.30
BuyUS$66,00019 Apr 19
Daniel Pittard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares400
Max PriceUS$165.00
SellUS$1,004,16620 Nov 18
Michael Freeman
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares6,000
Max PriceUS$167.36
SellUS$911,47315 Nov 18
Michael Freeman
EntityIndividual
Role
Senior Key Executive
Chief Strategy Officer
Shares5,386
Max PriceUS$169.23
SellUS$360,04731 Oct 18
Stanley Sewitch
EntityIndividual
Role
Other Key Executive
Vice President of Global Organisation Development
Shares2,167
Max PriceUS$166.15

Ownership Breakdown


Management Team

  • Garry Ridge (63yo)

    CEO & Director

    • Tenure: 21.8yrs
    • Compensation: US$2.43m
  • Michael Freeman (66yo)

    Chief Strategy Officer

    • Tenure: 3.6yrs
    • Compensation: US$810.94k
  • Geoff Holdsworth (57yo)

    Managing Director of Asia Pacific

    • Tenure: 22.6yrs
    • Compensation: US$623.03k
  • William Noble (61yo)

    Managing Director of Europe

    • Tenure: 23.6yrs
    • Compensation: US$649.73k
  • Jay Rembolt (68yo)

    CFO, VP of Finance & Treasurer

    • Tenure: 11.3yrs
    • Compensation: US$779.84k
  • Stan Sewitch (66yo)

    Vice President of Global Organisation Development

    • Tenure: 7.6yrs
    • Compensation: US$601.91k
  • Rich Clampitt (64yo)

    Corporate Secretary

    • Tenure: 5.6yrs
    • Compensation: US$636.60k
  • Steve Brass (53yo)

    President & COO

    • Tenure: 0.2yrs
    • Compensation: US$785.14k
  • Wendy Kelley

    Director of Investor Relations & Corporate Communications

    • Tenure: 0.0yrs
  • Patricia Olsem

    Divisional President of Americas

    • Tenure: 0.2yrs

Board Members

  • Dan Pittard (67yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$130.47k
  • Neal Schmale (72yo)

    Director

    • Tenure: 18.2yrs
    • Compensation: US$134.47k
  • Garry Ridge (63yo)

    CEO & Director

    • Tenure: 21.8yrs
    • Compensation: US$2.43m
  • Linda Lang (61yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$147.14k
  • Dan Carter (62yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$138.47k
  • David Pendarvis (60yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$107.97k
  • Greg Sandfort (64yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$132.47k
  • Anne Saunders (57yo)

    Director

    • Tenure: 0.4yrs
  • Eric Etchart (62yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$127.81k
  • Melissa Claassen (47yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$130.47k

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$2.523b
  • Shares outstanding: 13.73m
  • 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 maintenanc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:50
End of Day Share Price2019/08/16 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.