WD-40 Company Fundamental Analysis
WD-40 Company (WDFC) shows moderate financial fundamentals with a PE ratio of 38.91, profit margin of 13.22%, and ROE of 33.05%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 4.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WDFC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWDFC demonstrates superior asset utilization.
Valuation Score
WeakWDFC trades at a premium to fair value.
Growth Score
ModerateWDFC shows steady but slowing expansion.
Financial Health Score
ExcellentWDFC maintains a strong and stable balance sheet.
Profitability Score
ModerateWDFC maintains healthy but balanced margins.
Key Financial Metrics
Is WDFC Expensive or Cheap?
P/E Ratio
WDFC trades at 38.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WDFC's PEG of 10.31 indicates potential overvaluation.
Price to Book
The market values WD-40 Company at 12.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.54 times EBITDA. This signals the market has high growth expectations.
How Well Does WDFC Make Money?
Net Profit Margin
For every $100 in sales, WD-40 Company keeps $13.22 as profit after all expenses.
Operating Margin
Core operations generate 17.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.05 in profit for every $100 of shareholder equity.
ROA
WD-40 Company generates $17.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WD-40 Company produces operating cash flow of $84.58M, showing steady but balanced cash generation.
Free Cash Flow
WD-40 Company generates strong free cash flow of $79.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.91 in free cash annually.
FCF Yield
WDFC converts 2.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How WDFC Stacks Against Its Sector Peers
| Metric | WDFC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.91 | 26.86 | Worse (Expensive) |
| ROE | 33.05% | 1017.00% | Weak |
| Net Margin | 13.22% | -1469.00% (disorted) | Strong |
| Debt/Equity | 0.41 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 2.65 | 3.20 | Strong Liquidity |
| ROA | 17.85% | 568.00% | Weak |
WDFC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WD-40 Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.42%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
51.51%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
22.32%
Industry Style: Cyclical, Commodity, Value
High Growth