217.14 USD
+1.95 (+0.91%)
217.14 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WDFC. WDFC was compared to 12 industry peers in the Household Products industry. WDFC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WDFC is quite expensive at the moment. It does show a decent growth rate. These ratings would make WDFC suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year WDFC was profitable.
- In the past year WDFC had a positive cash flow from operations.
- Each year in the past 5 years WDFC has been profitable.
- In the past 5 years WDFC always reported a positive cash flow from operatings.
1.2 Ratios
- WDFC's Return On Assets of 19.42% is amongst the best of the industry. WDFC outperforms 100.00% of its industry peers.
- The Return On Equity of WDFC (33.81%) is better than 75.00% of its industry peers.
- WDFC has a better Return On Invested Capital (22.92%) than 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WDFC is significantly above the industry average of 14.84%.
- The 3 year average ROIC (22.46%) for WDFC is below the current ROIC(22.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.42% | ||
| ROE | 33.81% | ||
| ROIC | 22.92% |
ROA(3y)16.51%
ROA(5y)16.25%
ROE(3y)31.73%
ROE(5y)33.14%
ROIC(3y)22.46%
ROIC(5y)22.22%
1.3 Margins
- WDFC's Profit Margin of 14.38% is amongst the best of the industry. WDFC outperforms 83.33% of its industry peers.
- WDFC's Profit Margin has been stable in the last couple of years.
- WDFC has a better Operating Margin (16.42%) than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of WDFC has declined.
- WDFC has a Gross Margin of 55.42%. This is amongst the best in the industry. WDFC outperforms 91.67% of its industry peers.
- In the last couple of years the Gross Margin of WDFC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.42% | ||
| PM (TTM) | 14.38% | ||
| GM | 55.42% |
OM growth 3Y-0.17%
OM growth 5Y-2.39%
PM growth 3Y4.21%
PM growth 5Y-0.2%
GM growth 3Y3.88%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDFC is creating value.
- Compared to 1 year ago, WDFC has about the same amount of shares outstanding.
- Compared to 5 years ago, WDFC has less shares outstanding
- WDFC has a better debt/assets ratio than last year.
2.2 Solvency
- WDFC has an Altman-Z score of 13.22. This indicates that WDFC is financially healthy and has little risk of bankruptcy at the moment.
- WDFC's Altman-Z score of 13.22 is amongst the best of the industry. WDFC outperforms 100.00% of its industry peers.
- The Debt to FCF ratio of WDFC is 1.16, which is an excellent value as it means it would take WDFC, only 1.16 years of fcf income to pay off all of its debts.
- WDFC has a better Debt to FCF ratio (1.16) than 91.67% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that WDFC is not too dependend on debt financing.
- WDFC has a Debt to Equity ratio of 0.32. This is amongst the best in the industry. WDFC outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 13.22 |
ROIC/WACC2.63
WACC8.71%
2.3 Liquidity
- WDFC has a Current Ratio of 2.97. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WDFC (2.97) is better than 75.00% of its industry peers.
- WDFC has a Quick Ratio of 2.05. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
- WDFC has a better Quick ratio (2.05) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.20% over the past year.
- The Earnings Per Share has been growing slightly by 5.72% on average over the past years.
- Looking at the last year, WDFC shows a small growth in Revenue. The Revenue has grown by 2.86% in the last year.
- WDFC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.70% yearly.
EPS 1Y (TTM)9.2%
EPS 3Y5.84%
EPS 5Y5.72%
EPS Q2Q%-7.91%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y6.12%
Revenue growth 5Y8.7%
Sales Q2Q%0.6%
3.2 Future
- Based on estimates for the next years, WDFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.87% on average per year.
- WDFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.49% yearly.
EPS Next Y7%
EPS Next 2Y7.32%
EPS Next 3Y8.87%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y5.98%
Revenue Next 3Y6.49%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 38.09, the valuation of WDFC can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of WDFC indicates a rather expensive valuation: WDFC more expensive than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, WDFC is valued a bit more expensive.
- WDFC is valuated quite expensively with a Price/Forward Earnings ratio of 32.45.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WDFC indicates a rather expensive valuation: WDFC more expensive than 83.33% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. WDFC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.09 | ||
| Fwd PE | 32.45 |
4.2 Price Multiples
- 91.67% of the companies in the same industry are cheaper than WDFC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, WDFC is valued expensively inside the industry as 91.67% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.57 | ||
| EV/EBITDA | 26.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WDFC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.44
PEG (5Y)6.66
EPS Next 2Y7.32%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
- WDFC has a Yearly Dividend Yield of 1.90%.
- WDFC's Dividend Yield is comparable with the industry average which is at 2.65.
- WDFC's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
- On average, the dividend of WDFC grows each year by 7.13%, which is quite nice.
- WDFC has been paying a dividend for at least 10 years, so it has a reliable track record.
- As WDFC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.13%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- WDFC pays out 57.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of WDFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.19%
EPS Next 2Y7.32%
EPS Next 3Y8.87%
WD-40 CO / WDFC FAQ
What is the fundamental rating for WDFC stock?
ChartMill assigns a fundamental rating of 7 / 10 to WDFC.
What is the valuation status for WDFC stock?
ChartMill assigns a valuation rating of 1 / 10 to WD-40 CO (WDFC). This can be considered as Overvalued.
How profitable is WD-40 CO (WDFC) stock?
WD-40 CO (WDFC) has a profitability rating of 8 / 10.
What is the valuation of WD-40 CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WD-40 CO (WDFC) is 38.09 and the Price/Book (PB) ratio is 11.13.
Can you provide the dividend sustainability for WDFC stock?
The dividend rating of WD-40 CO (WDFC) is 6 / 10 and the dividend payout ratio is 57.19%.