WD-40 CO (WDFC) Stock Fundamental Analysis
NASDAQ:WDFC - Nasdaq - US9292361071 - Common Stock - Currency: USD
Taking everything into account, WDFC scores 6 out of 10 in our fundamental rating. WDFC was compared to 12 industry peers in the Household Products industry. WDFC gets an excellent profitability rating and is at the same time showing great financial health properties. WDFC is quite expensive at the moment. It does show a decent growth rate. This makes WDFC very considerable 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.
In the past 5 years WDFC has always been profitable.
WDFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WDFC has a Return On Assets of 18.58%. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
With a decent Return On Equity value of 35.16%, WDFC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.19%, WDFC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WDFC is above the industry average of 15.82%.
The 3 year average ROIC (20.62%) for WDFC is below the current ROIC(22.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.58% | ||
| ROE | 35.16% | ||
| ROIC | 22.19% |
ROA(3y)15.3%
ROA(5y)15.77%
ROE(3y)32.31%
ROE(5y)33.91%
ROIC(3y)20.62%
ROIC(5y)20.25%
1.3 Margins
WDFC has a Profit Margin of 13.94%. This is amongst the best in the industry. WDFC outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of WDFC has declined.
WDFC's Operating Margin of 16.32% is fine compared to the rest of the industry. WDFC outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of WDFC has declined.
With an excellent Gross Margin value of 54.13%, WDFC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
WDFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.32% | ||
| PM (TTM) | 13.94% | ||
| GM | 54.13% |
OM growth 3Y-3.57%
OM growth 5Y-3.47%
PM growth 3Y-6.42%
PM growth 5Y-2.2%
GM growth 3Y-0.4%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDFC is creating value.
WDFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WDFC has less shares outstanding
The debt/assets ratio for WDFC has been reduced compared to a year ago.
2.2 Solvency
WDFC has an Altman-Z score of 12.84. This indicates that WDFC is financially healthy and has little risk of bankruptcy at the moment.
WDFC's Altman-Z score of 12.84 is amongst the best of the industry. WDFC outperforms 100.00% of its industry peers.
WDFC has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
The Debt to FCF ratio of WDFC (1.75) is better than 91.67% of its industry peers.
WDFC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WDFC (0.35) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 12.84 |
ROIC/WACC2.54
WACC8.74%
2.3 Liquidity
WDFC has a Current Ratio of 2.40. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
WDFC has a Current ratio of 2.40. This is in the better half of the industry: WDFC outperforms 75.00% of its industry peers.
A Quick Ratio of 1.69 indicates that WDFC should not have too much problems paying its short term obligations.
The Quick ratio of WDFC (1.69) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.15% over the past year.
WDFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.90% yearly.
Looking at the last year, WDFC shows a quite strong growth in Revenue. The Revenue has grown by 8.71% in the last year.
WDFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.88% yearly.
EPS 1Y (TTM)25.15%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%92.11%
Revenue 1Y (TTM)8.71%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%5.03%
3.2 Future
The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y10.66%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue Next Year7.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WDFC is valuated quite expensively with a Price/Earnings ratio of 37.19.
WDFC's Price/Earnings ratio is rather expensive when compared to the industry. WDFC is more expensive than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. WDFC is valued slightly more expensive when compared to this.
WDFC is valuated quite expensively with a Price/Forward Earnings ratio of 38.32.
83.33% of the companies in the same industry are cheaper than WDFC, based on the Price/Forward Earnings ratio.
WDFC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.19 | ||
| Fwd PE | 38.32 |
4.2 Price Multiples
WDFC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WDFC is more expensive than 91.67% of the companies in the same industry.
WDFC's Price/Free Cash Flow ratio is rather expensive when compared to the industry. WDFC is more expensive than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.96 | ||
| EV/EBITDA | 29.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WDFC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WDFC may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)19.53
EPS Next 2Y9.12%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
WDFC has a Yearly Dividend Yield of 1.65%.
WDFC's Dividend Yield is comparable with the industry average which is at 3.11.
WDFC's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
On average, the dividend of WDFC grows each year by 7.85%, which is quite nice.
WDFC has been paying a dividend for at least 10 years, so it has a reliable track record.
WDFC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.85%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
WDFC pays out 57.17% 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.
DP57.17%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
233.16
+1.66 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners90.1%
Inst Owner Change-1.24%
Ins Owners0.63%
Ins Owner Change0.04%
Market Cap3.16B
Analysts80
Price Target301.92 (29.49%)
Short Float %7.39%
Short Ratio5.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend3.48
Dividend Growth(5Y)7.85%
DP57.17%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.43%
Min EPS beat(2)6.01%
Max EPS beat(2)68.86%
EPS beat(4)3
Avg EPS beat(4)17.05%
Min EPS beat(4)-10.01%
Max EPS beat(4)68.86%
EPS beat(8)6
Avg EPS beat(8)12.25%
EPS beat(12)7
Avg EPS beat(12)6.35%
EPS beat(16)10
Avg EPS beat(16)5.97%
Revenue beat(2)1
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-7.24%
Max Revenue beat(2)2.06%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-7.24%
Max Revenue beat(4)4.25%
Revenue beat(8)5
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)-2.33%
Revenue beat(16)9
Avg Revenue beat(16)-0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.19 | ||
| Fwd PE | 38.32 | ||
| P/S | 5.17 | ||
| P/FCF | 47.96 | ||
| P/OCF | 45.1 | ||
| P/B | 13.05 | ||
| P/tB | 22.05 | ||
| EV/EBITDA | 29.23 |
EPS(TTM)6.27
EY2.69%
EPS(NY)6.08
Fwd EY2.61%
FCF(TTM)4.86
FCFY2.09%
OCF(TTM)5.17
OCFY2.22%
SpS45.07
BVpS17.87
TBVpS10.58
PEG (NY)3.49
PEG (5Y)19.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.58% | ||
| ROE | 35.16% | ||
| ROCE | 28.9% | ||
| ROIC | 22.19% | ||
| ROICexc | 26.22% | ||
| ROICexgc | 39.65% | ||
| OM | 16.32% | ||
| PM (TTM) | 13.94% | ||
| GM | 54.13% | ||
| FCFM | 10.79% |
ROA(3y)15.3%
ROA(5y)15.77%
ROE(3y)32.31%
ROE(5y)33.91%
ROIC(3y)20.62%
ROIC(5y)20.25%
ROICexc(3y)23.7%
ROICexc(5y)24.32%
ROICexgc(3y)36.12%
ROICexgc(5y)38.82%
ROCE(3y)26.85%
ROCE(5y)26.37%
ROICexcg growth 3Y-4.87%
ROICexcg growth 5Y-10.65%
ROICexc growth 3Y-2.12%
ROICexc growth 5Y-4.66%
OM growth 3Y-3.57%
OM growth 5Y-3.47%
PM growth 3Y-6.42%
PM growth 5Y-2.2%
GM growth 3Y-0.4%
GM growth 5Y-0.55%
F-Score8
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 39.43% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.56% | ||
| Profit Quality | 77.39% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 12.84 |
F-Score8
WACC8.74%
ROIC/WACC2.54
Cap/Depr(3y)74.6%
Cap/Depr(5y)137.82%
Cap/Sales(3y)1.2%
Cap/Sales(5y)2.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.15%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%92.11%
EPS Next Y10.66%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue 1Y (TTM)8.71%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%5.03%
Revenue Next Year7.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
EBIT growth 1Y5.96%
EBIT growth 3Y2.76%
EBIT growth 5Y3.18%
EBIT Next Year15.65%
EBIT Next 3Y10.33%
EBIT Next 5YN/A
FCF growth 1Y474.86%
FCF growth 3Y8.04%
FCF growth 5Y12.12%
OCF growth 1Y259.78%
OCF growth 3Y2.8%
OCF growth 5Y7.93%