WD-40 CO (WDFC) Stock Fundamental Analysis
USA - NASDAQ:WDFC - US9292361071 - Common Stock
199.04 USD
-0.35 (-0.18%)
199.04 USD
0 (0%)
WDFC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
WDFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WDFC has a Return On Assets of 18.92%. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
WDFC's Return On Equity of 33.56% is fine compared to the rest of the industry. WDFC outperforms 66.67% of its industry peers.
WDFC has a Return On Invested Capital of 21.16%. This is in the better half of the industry: WDFC outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WDFC is significantly above the industry average of 15.56%.
The last Return On Invested Capital (21.16%) for WDFC is above the 3 year average (20.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 33.56% | ||
| ROIC | 21.16% |
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
The Profit Margin of WDFC (14.09%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of WDFC has declined.
Looking at the Operating Margin, with a value of 16.30%, WDFC is in line with its industry, outperforming 58.33% of the companies in the same industry.
WDFC's Operating Margin has declined in the last couple of years.
WDFC has a better Gross Margin (54.90%) than 91.67% of its industry peers.
WDFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 14.09% | ||
| GM | 54.9% |
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
WDFC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WDFC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WDFC has less shares outstanding
Compared to 1 year ago, WDFC has an improved debt to assets ratio.
2.2 Solvency
WDFC has an Altman-Z score of 12.28. This indicates that WDFC is financially healthy and has little risk of bankruptcy at the moment.
WDFC has a Altman-Z score of 12.28. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
WDFC has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.18, WDFC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
WDFC has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, WDFC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 12.28 |
ROIC/WACC2.45
WACC8.62%
2.3 Liquidity
WDFC has a Current Ratio of 2.84. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
WDFC's Current ratio of 2.84 is amongst the best of the industry. WDFC outperforms 83.33% of its industry peers.
WDFC has a Quick Ratio of 2.02. This indicates that WDFC is financially healthy and has no problem in meeting its short term obligations.
WDFC's Quick ratio of 2.02 is amongst the best of the industry. WDFC outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
WDFC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.66%.
Measured over the past 5 years, WDFC shows a small growth in Earnings Per Share. The EPS has been growing by 1.90% on average per year.
Looking at the last year, WDFC shows a small growth in Revenue. The Revenue has grown by 6.51% in the last year.
Measured over the past years, WDFC shows a small growth in Revenue. The Revenue has been growing by 6.88% on average per year.
EPS 1Y (TTM)7.66%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%5.48%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%1.21%
3.2 Future
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
WDFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y10.41%
EPS Next 2Y9.22%
EPS Next 3Y7.68%
EPS Next 5YN/A
Revenue Next Year5.33%
Revenue Next 2Y5.55%
Revenue Next 3Y5.98%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.32, 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.
WDFC is valuated rather expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.65, the valuation of WDFC can be described as expensive.
WDFC's Price/Forward Earnings ratio is rather expensive when compared to the industry. WDFC is more expensive than 83.33% of the companies in the same industry.
WDFC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.32 | ||
| Fwd PE | 32.65 |
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 more expensive than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.18 | ||
| EV/EBITDA | 24.88 |
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 decent profitability rating of WDFC may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)19.07
EPS Next 2Y9.22%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
WDFC has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
WDFC's Dividend Yield is comparable with the industry average which is at 2.97.
Compared to the average S&P500 Dividend Yield of 2.42, WDFC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
On average, the dividend of WDFC grows each year by 7.85%, which is quite nice.
WDFC has paid a dividend for at least 10 years, which is 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)7.85%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
WDFC pays out 57.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
WDFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.33%
EPS Next 2Y9.22%
EPS Next 3Y7.68%
199.04
-0.35 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners89.92%
Inst Owner Change0.73%
Ins Owners0.63%
Ins Owner Change0.04%
Market Cap2.69B
Analysts82.22
Price Target289.85 (45.62%)
Short Float %4.99%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend3.48
Dividend Growth(5Y)7.85%
DP57.33%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.07%
Min EPS beat(2)1.78%
Max EPS beat(2)6.36%
EPS beat(4)3
Avg EPS beat(4)1.04%
Min EPS beat(4)-10.01%
Max EPS beat(4)6.36%
EPS beat(8)6
Avg EPS beat(8)3.32%
EPS beat(12)8
Avg EPS beat(12)2.75%
EPS beat(16)10
Avg EPS beat(16)0.33%
Revenue beat(2)0
Avg Revenue beat(2)-5.72%
Min Revenue beat(2)-7.24%
Max Revenue beat(2)-4.21%
Revenue beat(4)2
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-7.24%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)-1.43%
Revenue beat(16)8
Avg Revenue beat(16)-2.08%
PT rev (1m)0%
PT rev (3m)-4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.32 | ||
| Fwd PE | 32.65 | ||
| P/S | 4.4 | ||
| P/FCF | 33.18 | ||
| P/OCF | 31.61 | ||
| P/B | 10.48 | ||
| P/tB | 17.07 | ||
| EV/EBITDA | 24.88 |
EPS(TTM)5.48
EY2.75%
EPS(NY)6.1
Fwd EY3.06%
FCF(TTM)6
FCFY3.01%
OCF(TTM)6.3
OCFY3.16%
SpS45.27
BVpS19
TBVpS11.66
PEG (NY)3.49
PEG (5Y)19.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 33.56% | ||
| ROCE | 27.56% | ||
| ROIC | 21.16% | ||
| ROICexc | 24.68% | ||
| ROICexgc | 36.28% | ||
| OM | 16.3% | ||
| PM (TTM) | 14.09% | ||
| GM | 54.9% | ||
| FCFM | 13.25% |
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 Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 39.43% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.43% | ||
| Profit Quality | 94.08% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 12.28 |
F-Score8
WACC8.62%
ROIC/WACC2.45
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)7.66%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%5.48%
EPS Next Y10.41%
EPS Next 2Y9.22%
EPS Next 3Y7.68%
EPS Next 5YN/A
Revenue 1Y (TTM)6.51%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%1.21%
Revenue Next Year5.33%
Revenue Next 2Y5.55%
Revenue Next 3Y5.98%
Revenue Next 5YN/A
EBIT growth 1Y4.52%
EBIT growth 3Y2.76%
EBIT growth 5Y3.18%
EBIT Next Year13.92%
EBIT Next 3Y6.84%
EBIT Next 5YN/A
FCF growth 1Y81.58%
FCF growth 3Y8.04%
FCF growth 5Y12.12%
OCF growth 1Y68.59%
OCF growth 3Y2.8%
OCF growth 5Y7.93%