WD-40 Company (WDFC)
NASDAQConsumer StaplesChemicals - SpecialtySnapshot 2026-09-09
$199.84-0.94%
Close 2026-09-09 · 1-day change
NASDAQConsumer StaplesChemicals - SpecialtySnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
WD-40 keeps growing sales about 9% a year. Profit margins stay strong near 56%. Operating income is rising toward $110 million. The company has stable management and a durable brand.
Revenue growth could slow below 6% if demand weakens. Profit margins might shrink under cost pressures. The stock trades expensive with a PE over 42, risking a valuation pullback.
The market expects about 9% revenue growth and values WD-40 at a premium with a PE of 42. Our fair value aligns near $138, pricing in steady growth but little margin for multiple expansion.
Breaks if: Gross margin falls below 55.5% in FY26
Sustain gross margin within the targeted range through pricing actions, cost-saving initiatives, and supply chain management.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on maintenance products. The current thesis is intact, supported by strong recent financial performance, though the valuation is considered expensive compared to peers.
The market appears to be pricing in a durable premium, indicating high expectations for WDFC's performance. However, the valuation is seen as unjustified given the current sector backdrop and potential risks.
Fundamentals are likely to show continued growth in maintenance products, with management on track to meet operating income targets. However, there is a moderate risk due to the potential for earnings surprises in a high-miss-rate industry.
The thesis hinges on management's ability to maintain guidance and navigate sector headwinds. Key scenarios include the impact of inflation on consumer staples and the performance of sector bellwethers like PG, KO, and COST.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a more favorable outlook. Management's strategic growth framework aims to drive growth in maintenance products across all trade blocs. This reinforces expectations for continued performance in the core business.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Gross margin was 56.6% in 2026-Q3 and 55.6% in 2026-Q2, within or slightly above the guidance range of 54.5% to 55.5% for fiscal 2026. Management has implemented pricing and cost-saving initiatives. The trajectory shows stable to slightly improving margins consistent with stated targets.
“Gross margin increased to 56.6 percent compared to 56.2 percent in the prior year fiscal quarter.”
“Gross margin increased to 55.6 percent compared to 54.6 percent in the prior year fiscal quarter.”
“Gross margin for the full year is expected to be between 55.5 and 56.5 percent.”
Breaks if: Significant management disruption or loss of strategic direction
Breaks if: Operating income falls below $103 million in FY26
Breaks if: Revenue falls below $630 million in FY26
WDFC's outlook remains stable, driven by strong management execution and market positioning, but faces valuation challenges and sector risks. Not investment advice.