WD-40 Company (WDFC)
Before we dive into $WDFC, here are some recently covered stocks you may be interested in:
Intercontinental Exchange ICE 0.00%↑
Background
WD-40 Company WDFC 0.00%↑ is a leader in the development and sale of maintenance and cleaning products, most notably WD-40 (obviously) and operates in three segments: Americas, EMEA, and Asia-Pacific.
Headquartered in San Diego, CA, WD-40 company was founded in 1953.
WDFC 0.00%↑ has a current market cap of about $3.3B and over the past decade has a total return of more than 225%, resulting in a CAGR of 12.6%.
Source: FinChat.io Quality Financial Metrics
Let’s review some key financial metrics for WD-40 Company and decide if the company is heading in the right direction.
Revenue Per Share:
WDFC 0.00%↑ has shown a general upward trend in the RPS over the past 10 years, increasing this metric from $25.9 to $43.6, reflecting a total change of more than 68%.
The RPS CAGR is just shy of 6%, which indicates steady growth with some minor fluctuations along the way.
The largest increase occurred during the last fiscal year, with RPS rising from $39.6 to $43.6, an increase of 10%.
Gross Profit Margin:
WD-40 company has maintained a relatively stable GPM, with this metric fluctuating between 49.1% and 56.3%.
Since declining to 49.1% in FY 2022, the gross profit margin has mostly recovered and in FY24 came in at 53.4%.
Return on Invested Capital:
WDFC 0.00%↑ has shown variability in their ROIC, but is overall very impressive, with the lowest mark still at a remarkable 21.4% in FY23.
Most of the companies we’ve discussed have decent ROIC’s, but WD-40 takes it to a whole new level.
As you probably know I usually look for this metric around 20%, so seeing it in the mid-20’s and even surpassing 30% is obviously very encouraging.
Source: FinChat.io Dividend Data
WDFC 0.00%↑ has grown its dividend for 15 consecutive years and over the past decade it has increased it by more than 130%, from $1.52 to $3.52 per share.
Over the past ten years, the largest dividend hike occurred between FY16 and FY17, climbing by 16.7%, but to be fair the increases have been slowing some.
The payout ratio is still at an acceptable level and should allow for future dividend increases.
Source: FinChat.io Potential Headwinds
Foreign Currency Exchange: WDFC 0.00%↑ operates in almost 200 countries, and fluctuations in foreign exchange rates have consistently impacted their financial results. In Q2 2025, translation of foreign subsidiaries’ results impacted sales by almost $5M, offsetting gains from improved margins. This will likely remain a challenge for WDFC 0.00%↑ given the company’s global footprint and reliance on international markets such as EMEA and Asia-Pacific.
Potential Tariff Impacts & Supply Chain Costs: WDFC 0.00%↑ faces risks from proposed U.S. tariffs coupled with retaliatory tariffs from China, which could disrupt its supply chain and raise costs. Although the company has been able to mitigate this risk through a decentralized supply chain, rising costs for raw materials continue to threaten profitability, despite recent gross margin improvements.
Q2 2025 Earnings
WDFC 0.00%↑ has a solid track record of earnings performance, beating EPS estimates in 11 of the last 16 quarters, while revenue has exceeded expectations in 10 of the last 16 quarters, reflecting overall consistent growth.
Recent Q2 earnings report, showed non-GAAP EPS of $1.32, missing estimates by $0.18, on revenue of $146.1M, which came up just shy of the $154.4M expected, but was a 5% increase from the prior year.
The EMEA segment had revenue of $59.6M, a 10% YoY increase, driven by strong volume increases.
The Americas segment showed a modest 3% rise in sales to $65.5M. Although growth was supported by a 12% increase in WD-40 Specialist product sales, this increase was partially offset by tariff-related cost pressures.
The Asia-Pacific portion of the company had revenue of $21M, a 1% YoY decline as a result of weaker performance coupled with currency headwinds.
Management also provided updated guidance for FY25 which is shown below.
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Valuation
Let’s examine WDFC 0.00%↑ valuation from a FCF perspective and see try to determine if it’s trading for a discount.