WD 40 Co (WDFC) stock analysis

P/E below its 5-year median

WD 40's P/E of 36.1 is below its own 5-year median of 41.3.

P/E above the industry

WD 40's P/E of 36.1 is above the Chemicals and Allied Products median of 25.2.

EV/EBITDA below its 5-year median

WD 40's EV/EBITDA of 24.8 is below its 5-year median of 29.7.

P/B above the industry

WD 40's price-to-book of 10.77 is above the Chemicals and Allied Products median of 2.24.

Trading above fair value

The share price of $219.50 is above our fair value estimate of $188.74.

Margin of safety under 20%

The price is 16.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -9.5% over the last twelve months, against a 5-year average of 3.2% a year.

Growing slower than the industry

Revenue grew 11.0% over the last twelve months; the Chemicals and Allied Products median is 11.0%.

Guidance raised

WD 40 raised its fiscal year 2027 provision for income tax outlook on Oct 21, 2026.

Gross margin improving

Gross margin was 55.3% over the last twelve months, against 55.1% a year earlier.

Return on equity over 15%

Return on equity was 30.4% over the last twelve months and averaged 33.2% over five years.

Return on capital over 10%

Return on invested capital was 28.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

WD 40's return on equity of 30.4% is above the Chemicals and Allied Products median of 7.4%.

Earnings grew over 5 years

Net income grew 3.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.0% over the last twelve months, against a 5-year average of 12.7%.

Net margin above the industry

WD 40's net margin of 12.0% is above the Chemicals and Allied Products median of 5.6%.

Low debt

Debt is 31.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 57.8% five years ago to 31.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 122% of total debt.

Interest well covered

Operating income covers interest expense 39.3 times.

Short-term assets cover short-term debts

Current assets are 2.57 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 12.14; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

WD 40 paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; WD 40 yields 1.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 65.6% of net income.

Covered by free cash flow

Dividends take 55.4% of free cash flow.