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1. Company Snapshot

1.a. Company Description

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, and in liquid-bulk form products under the WD-40 Multi-Use brand name; and specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand, as well as various products under the WD-40 Bike brand name.It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike market under the GT85 brand name.


In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name.It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers.The company was founded in 1953 and is headquartered in San Diego, California.

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1.b. Last Insights on WDFC

WD-40 Company's recent performance was driven by increased institutional investor interest, with Campbell & CO Investment Adviser LLC acquiring a new position in the company during the third quarter. Additionally, the company's quarterly dividend was increased by over 8% to $1.02 per share, reflecting its commitment to returning value to shareholders. Furthermore, WD-40's robust dividend yield and history of consistent payouts make it an attractive option for income-seeking investors.

1.c. Company Highlights

2. WD-40's Q1 FY2026 Earnings: A Mixed Bag

WD-40 Company reported consolidated net sales of $154.4 million, a modest 1% increase compared to the same period last year. The maintenance products segment, which accounts for 96% of total net sales, grew 2% year-over-year to $148.9 million. Gross margin expanded 140 basis points to 56.2%, driven by lower specialty chemical costs and higher average selling prices. However, operating income declined 7% to $23.3 million, and net income fell 8% to $17.5 million. Diluted earnings per common share were $1.28, slightly below the $1.29 actual EPS reported, and below analyst estimates of $1.36.

Publication Date: Jan -09

📋 Highlights
  • Consolidated Net Sales Growth: Net sales rose 1% to $154.4M, with maintenance products up 2% to $148.9M (96% of total sales).
  • EMEA Segment Surge: Sales increased 5% to $58.7M, driven by a 27% rise in WD-40 Specialist sales.
  • Gross Margin Expansion: Gross margin improved 140 bps to 56.2%, aided by lower chemical costs and higher pricing.
  • Adjusted EBITDA Margin Decline: Margin dipped to 17% from 18%, but expected to rebound to 20-22% post-home care divestiture impact.
  • Dividend Increase: Quarterly dividend raised 8% to $1.02/share, prioritizing 50%+ payout ratio and $7.8M in share repurchases.

Segment Performance

The Americas segment was the bright spot, with sales increasing 4% to $71.9 million, driven by higher sales of maintenance products in the US and Latin America. EMEA sales also grew 5% to $58.7 million, fueled by a 27% increase in WD-40 Specialist sales. However, Asia Pacific sales declined 10% to $23.9 million, due to lower sales of WD-40 Multi-Use Product in distributor markets.

Cost Structure and Guidance

The company's cost of doing business was 40% of net sales, compared to 37% last year, due to strategic investments in people and brand-building efforts. WD-40 reaffirmed its full-year 2026 guidance, expecting a strong rebound in sales later in the fiscal year. The company is focused on its four by four strategic framework, which includes lead geographic expansion, accelerating premiumization, driving WD-40 Specialist growth, and turbocharging digital commerce.

Valuation and Dividend Yield

With a P/E Ratio of 30.74 and an EV/EBITDA ratio of 24.65, WD-40's valuation appears to be pricing in a significant growth premium. However, the company's Dividend Yield of 1.85% and a disciplined capital allocation strategy, with a target of returning greater than 50% of earnings to stockholders through dividends, may provide a floor for the stock. The recent quarterly cash dividend of $1.02 per share, an increase of more than 8% over the prior quarter, is a positive sign.

Outlook and Estimates

3. NewsRoom

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Analyzing WD-40 (NASDAQ:WDFC) and Warby Parker (NYSE:WRBY)

Feb -01

Source: defenseworld.net

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The Secret Society of People Who Know the Formula for WD-40

Jan -26

Source: wsj.com

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Campbell & CO Investment Adviser LLC Takes Position in WD-40 Company $WDFC

Jan -20

Source: defenseworld.net

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Comparing Health and Happiness (H&H) International (OTCMKTS:BTSDF) and WD-40 (NASDAQ:WDFC)

Jan -18

Source: defenseworld.net

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WD-40 Stock Sank After Earnings—Here Are 5 Reasons Bulls Aren't Worried

Jan -12

Source: marketbeat.com

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WD-40: Reiterate Sell On Weak Q1 Earnings

Jan -10

Source: seekingalpha.com

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WD-40 Company to Participate in the 2026 ICR Conference

Jan -09

Source: businesswire.com

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WD-40 Company's Drop Doesn't Justify An Upgrade

Jan -09

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Maintenance Products

Expected Growth: 4.5%

Growing demand for maintenance products driven by increasing industrial and automotive applications, coupled with WD-40 Company's diversified product portfolio and strong brand recognition, is expected to drive segment growth.

Homecare and Cleaning Products

Expected Growth: 4.5%

Growing demand for cleaning and disinfecting products, increasing awareness of health and hygiene, and expansion into new markets drive the growth of WD-40 Company's Homecare and Cleaning Products segment.

7. Detailed Products

WD-40 Multi-Use Product

A penetrating oil that loosens stuck parts, protects tools from rust and corrosion, and displaces moisture.

3-IN-ONE Multi-Purpose Oil

A multi-purpose oil that lubricates, penetrates, and protects surfaces.

Spot Shot Instant Carpet Stain Remover

A carpet stain remover that instantly removes tough stains and odors.

1001 Troubleshooter & Lubricant

A lubricant that loosens stuck parts, reduces friction, and protects surfaces.

Lava Heavy-Duty Hand Cleaner

A heavy-duty hand cleaner that removes tough grease and grime.

X-14 Mildew Stain Remover

A mildew stain remover that removes tough mildew stains and odors.

Rust-Inhibiting Coating

A coating that protects metal surfaces from rust and corrosion.

Water-Resistant Silicone Lubricant

A silicone lubricant that provides long-lasting lubrication and protection.

8. WD-40 Company's Porter Forces

Forces Ranking

Threat Of Substitutes

WD-40 has a unique formula that is difficult to replicate, and customers are loyal to the brand, making substitutes less of a threat.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative products, WD-40's strong brand recognition and customer loyalty mitigate this threat.

Bargaining Power Of Suppliers

WD-40 has a diversified supplier base and is not heavily dependent on any one supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The barrier to entry is high due to WD-40's strong brand recognition, patented formula, and established distribution network, making it difficult for new entrants to compete.

Intensity Of Rivalry

While there is some competition in the lubricant market, WD-40's strong brand recognition and customer loyalty help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.95%
Debt Cost 3.95%
Equity Weight 62.05%
Equity Cost 3.80%
WACC 3.86%
Leverage 61.15%

11. Quality Control: WD-40 Company passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WD-40

A-Score: 4.8/10

Value: 1.5

Growth: 6.0

Quality: 8.5

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Axalta Coating Systems

A-Score: 4.7/10

Value: 5.3

Growth: 5.6

Quality: 7.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Quaker Chemical

A-Score: 4.6/10

Value: 5.9

Growth: 6.2

Quality: 3.5

Yield: 3.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Avient

A-Score: 4.5/10

Value: 5.4

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Albemarle

A-Score: 3.8/10

Value: 4.0

Growth: 3.4

Quality: 3.3

Yield: 2.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Avantor

A-Score: 3.4/10

Value: 6.4

Growth: 5.8

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

238.53$

Current Price

238.53$

Potential

-0.00%

Expected Cash-Flows