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.


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

-1.0%

WDFC

-1.4%

US Household Products

1.0%

US Market


1 Year Return

20.3%

WDFC

43.0%

US Household Products

6.7%

US Market

Return vs Industry: WDFC underperformed the US Household Products industry which returned 43% over the past year.

Return vs Market: WDFC exceeded the US Market which returned 6.7% over the past year.


Share holder returns

WDFCIndustryMarket
7 Day-1.0%-1.4%1.0%
30 Day0.2%-1.1%-1.8%
90 Day4.5%3.4%-1.8%
1 Year22.0%20.3%47.1%43.0%9.1%6.7%
3 Year75.7%67.5%48.2%35.6%46.1%36.6%
5 Year168.2%148.4%70.5%46.5%66.9%48.6%

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?

37.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: WDFC ($184.36) is trading above our estimate of fair value ($51.17)

Significantly Undervalued: WDFC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: WDFC is poor value based on its PE Ratio (37.2x) compared to the Household Products industry average (26.8x).

PE vs Market: WDFC is poor value based on its PE Ratio (37.2x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: WDFC is overvalued based on its PB Ratio (16.5x) compared to the US Household Products industry average (3.4x).


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WDFC's forecast earnings growth (8.1% per year) is above the savings rate (2.7%).

Earnings vs Market: WDFC's earnings (8.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WDFC's revenue (5.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WDFC's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WDFC's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: WDFC's earnings growth over the past year (19%) exceeds its 5-year average (10% per year).

Earnings vs Industry: WDFC earnings growth over the past year (19%) exceeded the Household Products industry -7.1%.


Return on Equity

High ROE: WDFC's Return on Equity (44.9%) is considered outstanding.


Return on Assets

ROA vs Industry: WDFC has a higher Return on Assets than the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: WDFC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is WD-40's financial position?


Financial Position Analysis

Short Term Liabilities: WDFC's short term assets ($160.9M) exceeds its short term liabilities ($84.9M)

Long Term Liabilities: WDFC's short term assets (160.9M) exceeds its long term liabilities (75.0M)


Debt to Equity History and Analysis

Debt Level: WDFC's debt to equity ratio (62.6%) is considered high

Reducing Debt: WDFC's debt to equity ratio has increased from 47.3% to 62.6% over the past 5 years.

Debt Coverage: WDFC's debt is well covered by operating cash flow (61.9%).

Interest Coverage: WDFC's interest payments on its debt are well covered by EBIT (26.5x 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 1.674570x debt).


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Upcoming Dividend Payment

Purchase WD-40 before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WDFC's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WDFC's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonably low payout ratio (47.8%), WDFC's dividend payments are well 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

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

7.8yrs

Average management tenure


CEO

Garry Ridge (63yo)

22yrs

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

Compensation vs. Market: Garry's total compensation ($USD2.43M) is below average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Garry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Management: WDFC's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

62yo

Average Age

Experienced Board: WDFC's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$256,65019 Aug 19
Geoffrey Holdsworth
EntityIndividual
Role
Senior Key Executive
Managing Director of Asia Pacific
Shares1,408
Max PriceUS$182.28
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: 22yrs
    • Compensation: US$2.43m
  • Michael Freeman (66yo)

    Chief Strategy Officer

    • Tenure: 3.8yrs
    • Compensation: US$810.94k
  • Geoff Holdsworth (57yo)

    Managing Director of Asia Pacific

    • Tenure: 22.8yrs
    • Compensation: US$623.03k
  • William Noble (61yo)

    Managing Director of Europe

    • Tenure: 23.8yrs
    • Compensation: US$649.73k
  • Jay Rembolt (68yo)

    CFO, VP of Finance & Treasurer

    • Tenure: 11.5yrs
    • Compensation: US$779.84k
  • Stan Sewitch (66yo)

    Vice President of Global Organisation Development

    • Tenure: 7.8yrs
    • Compensation: US$601.91k
  • Rich Clampitt (64yo)

    Corporate Secretary

    • Tenure: 5.8yrs
    • Compensation: US$636.60k
  • Steve Brass (53yo)

    President & COO

    • Tenure: 0.3yrs
    • Compensation: US$785.14k
  • Wendy Kelley

    Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Patricia Olsem

    Divisional President of Americas

    • Tenure: 0.3yrs

Board Members

  • Dan Pittard (67yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$130.47k
  • Neal Schmale (72yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$134.47k
  • Garry Ridge (63yo)

    CEO & Director

    • Tenure: 22yrs
    • Compensation: US$2.43m
  • Linda Lang (61yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$147.14k
  • Dan Carter (62yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$138.47k
  • David Pendarvis (60yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$107.97k
  • Greg Sandfort (64yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$132.47k
  • Anne Saunders (57yo)

    Director

    • Tenure: 0.6yrs
  • Eric Etchart (62yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$127.81k
  • Melissa Claassen (47yo)

    Director

    • Tenure: 4.6yrs
    • 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$2.531b
  • 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 Analysis2019/10/14 01:23
End of Day Share Price2019/10/11 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.

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