Fact based stock research
WD-40 (NasdaqGS:WDFC)

US9292361071

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

WD-40 stock research in summary

wd40.com

ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), WD-40 (Household Products, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of WD-40 are low in value (priced high) with a consolidated Value Rank of 13 (worse than 87% of alternatives) and show below-average growth (Growth Rank of 43) but are safely financed (Safety Rank of 84), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on WD-40's financial characteristics. As the company WD-40's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 13) and low growth (Obermatt Growth Rank of 43), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 84) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	13
Growth Rank	43
Safety Rank	84
Combined Rank	38

Country	USA
Industry	Household Products
Index	NASDAQ
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: WD-40

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	29	10	13
GROWTH
GROWTH	61	57	83	43
SAFETY
SAFETY	34	85	57	84
SENTIMENT
SENTIMENT	n/a	14	70	^new
360° VIEW
360° VIEW	n/a	44	61	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-May-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better WD-40 is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	29	10	13
GROWTH
GROWTH	61	57	83	43
SAFETY
SAFETY	34	85	57	84
COMBINED
COMBINED	39	65	56	38

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of WD-40 the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 13 (worse than 87% compared with alternatives), WD-40 shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for WD-40. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 74% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 13 which means that the stock price compared with what market professionals expect for future profits is higher than 87% of comparable companies, indicating a low value concerning WD-40's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 22 which means that the stock price compared with what market professionals expect for future profit levels is higher than 78% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 8 is also low. Compared with invested capital, the stock price is higher than for 92% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 13, is a sell recommendation based on WD-40's stock price compared with the company's operational size and dividend yields. Should dividend investors pick WD-40? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose WD-40 only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	30	24	13	13
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52	4	5	22
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	6	3	8
DIVIDEND YIELD
DIVIDEND YIELD	70	89	81	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	34	29	10	13

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of WD-40; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), WD-40 shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for WD-40. Sales Growth has a rank of 67 which means that currently professionals expect the company to grow more than 67% of its competitors. Stock Returns are also above average with a rank of 63. But Capital Growth has only a rank of 44, which means that currently professionals expect the company to grow its invested capital less than 56% of its competitors. Profit Growth is also low, with a rank of only 21, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 63% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	63	35	61	67
PROFIT GROWTH
PROFIT GROWTH	14	52	45	21
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	55	44
STOCK RETURNS
STOCK RETURNS	70	43	89	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	57	83	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of WD-40.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 84 (better than 84% compared with alternatives) for 2024, the company WD-40 has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of WD-40 is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for WD-40. Leverage is at a rank of 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 19, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 84 (better than 84% compared with alternatives), WD-40 has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for WD-40. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with WD-40 and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	36	53	49	64
REFINANCING
REFINANCING	36	25	23	19
LIQUIDITY
LIQUIDITY	58	95	81	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	34	85	57	84

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of WD-40 and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	7	9	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	4	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	50	85	^new
MARKET PULSE
MARKET PULSE	n/a	78	84	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	14	70	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for WD-40.
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