WD-40 CO (WDFC) Stock Fundamental Analysis
NASDAQ:WDFC - Nasdaq - US9292361071 - Common Stock - Currency: USD
WDFC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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.
WDFC had a positive operating cash flow in the past year.
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
The Return On Assets of WDFC (18.92%) is better than 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.
Looking at the Return On Invested Capital, with a value of 21.16%, WDFC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WDFC had an Average Return On Invested Capital over the past 3 years of 20.62%. This is significantly above the industry average of 15.41%.
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
With an excellent Profit Margin value of 14.09%, WDFC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
WDFC's Profit Margin has declined in the last couple of years.
WDFC's Operating Margin of 16.30% is fine compared to the rest of the industry. WDFC outperforms 66.67% of its industry peers.
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.
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 | 16.3% | ||
| 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
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 less shares outstanding
The number of shares outstanding for WDFC has been reduced compared to 5 years ago.
Compared to 1 year ago, WDFC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.11 indicates that WDFC is not in any danger for bankruptcy at the moment.
WDFC has a Altman-Z score of 13.11. This is amongst the best in the industry. WDFC outperforms 100.00% of its industry peers.
The Debt to FCF ratio of WDFC is 1.18, which is an excellent value as it means it would take WDFC, only 1.18 years of fcf income to pay off all of its debts.
WDFC's Debt to FCF ratio of 1.18 is amongst the best of the industry. WDFC outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that WDFC is not too dependend on debt financing.
WDFC has a Debt to Equity ratio of 0.33. This is amongst the best in the industry. WDFC outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 13.11 |
ROIC/WACC2.43
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.84 indicates that WDFC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.84, WDFC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that WDFC has no problem at all paying its short term obligations.
WDFC has a Quick ratio of 2.02. This is amongst the best in 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
The Earnings Per Share has grown by an impressive 24.75% over the past year.
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.
The Revenue has been growing slightly by 6.51% in the past year.
The Revenue has been growing slightly by 6.88% on average over the past years.
EPS 1Y (TTM)24.75%
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
Based on estimates for the next years, WDFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.62% on average per year.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y10.66%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y5.53%
Revenue Next 3Y5.96%
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
Based on the Price/Earnings ratio of 34.31, the valuation of WDFC can be described as expensive.
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 is valuated rather expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.81 indicates a quite expensive valuation of WDFC.
Based on the Price/Forward Earnings ratio, WDFC is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 33.87. WDFC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 35.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDFC is valued 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 | 36.32 | ||
| EV/EBITDA | 27.39 |
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 excellent profitability rating of WDFC may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)18.02
EPS Next 2Y9.12%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, WDFC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.87, WDFC has a dividend in line with its industry peers.
WDFC's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of WDFC is nicely growing with an annual growth rate of 7.85%!
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.
The dividend of WDFC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.33%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
217.88
-1.6 (-0.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners90.34%
Inst Owner Change-1.4%
Ins Owners0.63%
Ins Owner Change0.04%
Market Cap2.95B
Analysts80
Price Target289.85 (33.03%)
Short Float %7.3%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)37.61%
Min EPS beat(2)6.36%
Max EPS beat(2)68.86%
EPS beat(4)3
Avg EPS beat(4)17.81%
Min EPS beat(4)-10.01%
Max EPS beat(4)68.86%
EPS beat(8)6
Avg EPS beat(8)11.7%
EPS beat(12)8
Avg EPS beat(12)8.34%
EPS beat(16)10
Avg EPS beat(16)4.52%
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)-4%
PT rev (3m)-4%
EPS NQ rev (1m)-5.96%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)-4.23%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 35.81 | ||
| P/S | 4.81 | ||
| P/FCF | 36.32 | ||
| P/OCF | 34.6 | ||
| P/B | 11.47 | ||
| P/tB | 18.69 | ||
| EV/EBITDA | 27.39 |
EPS(TTM)6.35
EY2.91%
EPS(NY)6.08
Fwd EY2.79%
FCF(TTM)6
FCFY2.75%
OCF(TTM)6.3
OCFY2.89%
SpS45.27
BVpS19
TBVpS11.66
PEG (NY)3.22
PEG (5Y)18.02
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 | 13.11 |
F-Score8
WACC8.71%
ROIC/WACC2.43
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)24.75%
EPS 3Y0.13%
EPS 5Y1.9%
EPS Q2Q%5.48%
EPS Next Y10.66%
EPS Next 2Y9.12%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue 1Y (TTM)6.51%
Revenue growth 3Y6.56%
Revenue growth 5Y6.88%
Sales Q2Q%1.21%
Revenue Next Year5.29%
Revenue Next 2Y5.53%
Revenue Next 3Y5.96%
Revenue Next 5YN/A
EBIT growth 1Y4.52%
EBIT growth 3Y2.76%
EBIT growth 5Y3.18%
EBIT Next Year15.6%
EBIT Next 3Y8.31%
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%