WD-40 CO (WDFC)
US9292361071 - Common Stock
We assign a fundamental rating of 6 out of 10 to WDFC. WDFC was compared to 12 industry peers in the Household Products industry. Both the health and profitability get an excellent rating, making WDFC a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, WDFC is valued expensive at the moment. With these ratings, WDFC could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
WDFC had positive earnings in the past year.
WDFC had a positive operating cash flow in the past year.
In the past 5 years WDFC has always been profitable.
Each year in the past 5 years WDFC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WDFC (15.43%) is better than 83.33% of its industry peers.
WDFC's Return On Equity of 31.53% is in line compared to the rest of the industry. WDFC outperforms 58.33% of its industry peers.
WDFC has a Return On Invested Capital of 22.33%. This is amongst the best in the industry. WDFC outperforms 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 14.24%.
The 3 year average ROIC (20.60%) for WDFC is below the current ROIC(22.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.43% | ||
| ROE | 31.53% | ||
| ROIC | 22.33% |
ROA(3y)15.57%
ROA(5y)16.35%
ROE(3y)33.92%
ROE(5y)35.53%
ROIC(3y)20.6%
ROIC(5y)22.06%
1.3 Margins
WDFC has a better Profit Margin (12.14%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of WDFC has declined.
The Operating Margin of WDFC (16.74%) is better than 75.00% of its industry peers.
WDFC's Operating Margin has declined in the last couple of years.
WDFC has a Gross Margin of 52.05%. This is amongst the best in the industry. WDFC outperforms 91.67% of its industry peers.
WDFC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.74% | ||
| PM (TTM) | 12.14% | ||
| GM | 52.05% |
OM growth 3Y-4.05%
OM growth 5Y-2.8%
PM growth 3Y-6.14%
PM growth 5Y-5.07%
GM growth 3Y-2.22%
GM growth 5Y-1.54%
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.
The number of shares outstanding for WDFC remains at a similar level compared to 1 year ago.
WDFC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WDFC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.56 indicates that WDFC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.56, WDFC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WDFC has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
WDFC has a Debt to FCF ratio of 0.99. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDFC is not too dependend on debt financing.
WDFC's Debt to Equity ratio of 0.40 is amongst the best of the industry. WDFC outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 12.56 |
ROIC/WACC2.55
WACC8.77%
2.3 Liquidity
WDFC has a Current Ratio of 2.27. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WDFC (2.27) is better than 66.67% of its industry peers.
A Quick Ratio of 1.56 indicates that WDFC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, WDFC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
WDFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.38%, which is quite good.
The Earnings Per Share has been growing slightly by 0.76% on average over the past years.
Looking at the last year, WDFC shows a quite strong growth in Revenue. The Revenue has grown by 10.31% in the last year.
Measured over the past years, WDFC shows a small growth in Revenue. The Revenue has been growing by 5.63% on average per year.
EPS 1Y (TTM)14.38%
EPS 3Y3.09%
EPS 5Y0.76%
EPS growth Q2Q-5.79%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y9.57%
Revenue growth 5Y5.63%
Revenue growth Q2Q6.84%
3.2 Future
The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
Based on estimates for the next years, WDFC will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y8.45%
EPS Next 2Y11.3%
EPS Next 3Y12.34%
EPS Next 5YN/A
Revenue Next Year8%
Revenue Next 2Y6.89%
Revenue Next 3Y7.57%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 47.66 indicates a quite expensive valuation of WDFC.
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.
WDFC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.83.
The Price/Forward Earnings ratio is 40.00, which means the current valuation is very expensive for WDFC.
83.33% of the companies in the same industry are cheaper than WDFC, based on the Price/Forward Earnings ratio.
WDFC is valuated expensively when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.66 | ||
| Fwd PE | 40 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDFC indicates a slightly more expensive valuation: WDFC is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.67 | ||
| EV/EBITDA | 32.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WDFC may justify a higher PE ratio.
A more expensive valuation may be justified as WDFC's earnings are expected to grow with 12.34% in the coming years.
PEG (NY)5.64
PEG (5Y)62.38
EPS Next 2Y11.3%
EPS Next 3Y12.34%
5. Dividend
5.1 Amount
WDFC has a Yearly Dividend Yield of 1.51%.
WDFC's Dividend Yield is comparable with the industry average which is at 2.43.
Compared to the average S&P500 Dividend Yield of 2.34, WDFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of WDFC is nicely growing with an annual growth rate of 9.10%!
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)9.1%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
WDFC pays out 67.30% of its income as dividend. This is not a sustainable payout ratio.
WDFC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.3%
EPS Next 2Y11.3%
EPS Next 3Y12.34%
WD-40 CO
NASDAQ:WDFC (5/16/2024, 7:25:30 PM)
After market: 238.8 0 (0%)238.8
-1.85 (-0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.66 | ||
| Fwd PE | 40 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.64
PEG (5Y)62.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.43% | ||
| ROE | 31.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.74% | ||
| PM (TTM) | 12.14% | ||
| GM | 52.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.38%
EPS 3Y3.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.31%
Revenue growth 3Y9.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y