WD-40 Company (WDFC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

WD-40 Company (WDFC) Materials & Commodity Exposure

WD-40 Company develops and sells maintenance and homecare products across the globe. Its WD-40 Multi-Use product is complemented by specialty brands like WD-40 Specialist and 3-IN-ONE, solidifying its position in the specialty chemicals market. The company also offers cleaning products through brands like 2000 Flushes and Spot Shot.

What Is the Investment Thesis for WDFC?

The company's strong brand equity and wide distribution network provide a solid foundation for continued growth. With a profit margin of 12.6% and a gross margin of 55.7%, WD-40 demonstrates financial stability. Key catalysts include expansion into emerging markets and continued innovation in specialty products. However, investors may want to evaluate potential risks such as fluctuations in raw material costs and increasing competition in the maintenance and homecare market. The company's dividend yield of 1.94% offers an additional incentive for long-term investors.

Based on FMP financials and quantitative analysis

WDFC Key Highlights

Market capitalization of $2.67B reflects investor confidence in WD-40's brand and market position.

• P/E ratio of 30.16 indicates a premium valuation, suggesting expectations of future earnings growth.
• Gross margin of 55.7% demonstrates WD-40's ability to maintain profitability despite potential cost pressures.
• Dividend yield of 1.94% provides a steady income stream for investors.
• Low beta of 0.24 suggests that WD-40's stock price is less volatile than the overall market.

Who Are WDFC's Competitors?

WDFC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are WDFC's Key Strengths?

Strong brand recognition and loyalty

• Wide distribution network
• Diverse product portfolio
• Consistent profitability

What Are WDFC's Weaknesses?

Reliance on a single flagship product

• Exposure to fluctuations in raw material costs
• Limited presence in emerging markets compared to some competitors
• Potential for brand dilution through excessive product line extensions

What Could Drive WDFC Stock Higher?

Continued expansion into emerging markets, driving revenue growth.

• Innovation in specialty products, catering to specific customer needs.
• Leveraging e-commerce channels to reach a wider audience.
• Potential acquisitions of complementary businesses, diversifying the product portfolio.
• Targeted marketing campaigns to enhance brand awareness and drive demand.

What Are the Key Risks for WDFC?

Rich valuation — a P/E of 30.16 runs well above the Basic Materials sector’s ~21.40x, leaving little room for a miss.

• Fluctuations in raw material costs, impacting profitability.
• Increasing competition in the maintenance and homecare market.
• Changes in consumer preferences and buying habits.
• Economic downturns affecting demand for discretionary products.
• Regulatory changes impacting product formulations or distribution.

What Are the Growth Opportunities for WDFC?

• Growth opportunity 1: Expanding into emerging markets presents a significant growth opportunity for WD-40 Company. These markets often have a growing middle class and increasing demand for maintenance and homecare products. By establishing a strong presence in regions like Asia and Latin America, WD-40 Company can tap into new customer bases and drive revenue growth. This expansion could increase sales by an estimated 10-15% over the next 3-5 years.
• Growth opportunity 2: Innovation in specialty products is another key growth driver for WD-40 Company. By developing new formulations and applications for its WD-40 Specialist and 3-IN-ONE brands, the company can cater to specific customer needs and capture additional market share. This includes developing products that are more environmentally friendly and sustainable, which are increasingly in demand. Successful product launches could contribute an additional 5-10% to revenue growth annually.
• Growth opportunity 3: Leveraging e-commerce channels can further enhance WD-40 Company's growth prospects. With the increasing popularity of online shopping, the company can reach a wider audience and offer its products through various online platforms. This includes partnering with major e-commerce retailers and developing its own direct-to-consumer channels. Expanding e-commerce presence could boost sales by 8-12% over the next few years.
• Growth opportunity 4: Strategic acquisitions can provide WD-40 Company with access to new markets, technologies, and product lines. By acquiring companies in complementary segments of the maintenance and homecare market, WD-40 Company can diversify its portfolio and strengthen its competitive position. Potential acquisition targets could include companies specializing in sustainable cleaning products or industrial lubricants. Acquisitions could add 10-15% to overall revenue within 2-3 years.
• Growth opportunity 5: Enhancing brand awareness through targeted marketing campaigns can drive demand for WD-40 Company's products. By investing in digital marketing, social media, and influencer partnerships, the company can reach a wider audience and reinforce its brand image. This includes highlighting the versatility and benefits of WD-40 Multi-Use and other products. Effective marketing strategies could increase sales by 5-8% annually.

What Are WDFC's Competitive Advantages?

• Strong brand recognition and loyalty for the WD-40 Multi-Use product.
• Wide distribution network across various retail channels and geographic regions.
• Diverse product portfolio catering to different customer needs and applications.
• Consistent profitability and cash flow generation.

What Does WDFC Do?

Founded in 1953 and headquartered in San Diego, California, WD-40 Company has evolved from a single product company to a global provider of maintenance and homecare solutions. The company's flagship product, WD-40 Multi-Use, is a household name, known for its versatility in lubricating, penetrating, displacing moisture, and protecting against corrosion. Over the years, WD-40 Company has expanded its product portfolio through strategic acquisitions and organic development. The WD-40 Specialist line caters to professionals with specific needs for penetrants, degreasers, and lubricants. The 3-IN-ONE brand offers multi-purpose and specialty drip oils and spray lubricant products. In the homecare segment, brands like 2000 Flushes, Spot Shot, Carpet Fresh, 1001, Lava, Solvol, and X-14 provide a range of cleaning and maintenance solutions. WD-40 Company distributes its products through diverse channels, including warehouse clubs, hardware stores, automotive parts outlets, industrial distributors, mass retailers, and online platforms, reaching consumers and businesses across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions.

What Products and Services Does WDFC Offer?

• Develop and sell multi-purpose maintenance products under the WD-40 Multi-Use brand.
• Offer specialty maintenance products like penetrants, degreasers, and lubricants under the WD-40 Specialist brand.
• Provide multi-purpose and specialty drip oils and spray lubricant products under the 3-IN-ONE brand.
• Market professional spray maintenance products and lubricants for the bike market under the GT85 brand.
• Sell automatic toilet bowl cleaners under the 2000 Flushes brand.
• Offer aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand.
• Provide heavy-duty hand cleaner products under the Lava and Solvol brands.
• Market automatic toilet bowl cleaners under the X-14 brand.

How Does WDFC Make Money?

• WD-40 Company generates revenue through the sale of its maintenance and homecare products.
• The company focuses on building strong brand equity and maintaining a wide distribution network.
• WD-40 Company invests in product innovation and marketing to drive demand and maintain its competitive edge.

What Industry Does WDFC Operate In?

WD-40 Company operates in the specialty chemicals industry, which is characterized by steady demand and innovation in product formulations. The market is competitive, with players like RPM International Inc. and Element Solutions Inc. vying for market share. WD-40 Company differentiates itself through its iconic brand, wide distribution network, and diverse product portfolio. The industry is influenced by trends such as increasing demand for sustainable and environmentally friendly products, as well as the growing popularity of online retail channels. WD-40 Company's ability to adapt to these trends will be crucial for maintaining its competitive edge.

Who Are WDFC's Key Customers?

• Consumers who use WD-40 products for household maintenance and repairs.
• Automotive enthusiasts and professionals who rely on WD-40 products for vehicle maintenance.
• Industrial customers who use WD-40 products for equipment maintenance and lubrication.
• Bike enthusiasts and professionals who use WD-40 Bike and GT85 products.

Over the past six months, WD-40 Company insiders filed 2 SEC Form 4 transactions — 2 sales and 0 purchases. On net that is roughly 500 shares disposed (about $117K), a signal worth weighing alongside the fundamentals.

WD-40 Company has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 10.7% above estimates on average.

WD-40 Company's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 11.46 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for WD-40 Company stands at 33.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 17.9%, showing how much profit it generates from its asset base. WDFC trades at a trailing price-to-earnings ratio of 30.16, above the Basic Materials sector average of ~21.40x. Its free cash flow yield is 2.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.65 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.2%, the inverse of the P/E and a quick read on earnings relative to price.

WD-40 Company (WDFC) Valuation Context

Valued at $2.67B, WDFC is classified as a mid-cap stock. Analyst price targets span from $300.00 to $650.00, with a consensus of $475.00. At the current price of $199.04, that implies approximately 139% upside potential. Relative to its peer group, WDFC's quantitative score of 88/100 is above the peer average of 58/100.

WDFC Revenue & Earnings Trend

In Q3 FY2026, WDFC generated $195.1M in top-line revenue, marking a sequential increase of 20.7%. The company recorded net income of $30.2M, with diluted EPS of $2.24. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Basic Materials company. Across the four most recent quarters, WDFC averaged $1.65 in diluted EPS.

Company Profile

WD-40 Company operates in the Chemicals - Specialty industry within the Basic Materials sector. It is headquartered in San Diego, US. The company is led by CEO Steven A. Brass. WDFC has traded publicly since 1973.

WDFC Financials

WDFC Latest News

WDFC Analyst Consensus

WDFC MoonshotScore

Common Questions About WDFC (Basic Materials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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