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WDFCWD-40 Company
$194.23$2.6B
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  4. Financial Ratios

WD-40 Company (WDFC) Financial Ratios

Latest Ratios: P/E Ratio 29.0x · EV/EBITDA 23.6x · ROE 36.5%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

WDFC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.6B$2.9B$3.6B$2.9B$2.6B$3.3B$2.8B$2.5B$2.5B$1.5B$1.7B
Enterprise Value$2.6B$3.0B$3.6B$3.0B$2.7B$3.3B$2.9B$2.6B$2.5B$1.7B$1.8B
P/E Ratio →29.0332.2951.4444.4938.6047.0846.4545.1238.0029.2932.51
P/S Ratio4.204.736.045.444.996.746.865.966.064.044.47
P/B Ratio9.8310.9315.4813.9113.7316.4217.4917.3315.9311.0412.12
P/FCF31.2635.1540.6431.94—47.2452.5550.8647.3847.8130.25
P/OCF29.6533.3438.7829.71994.9138.8538.5940.1138.2229.4028.08

P/E links to full P/E history page with 30-year chart

WDFC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.796.145.595.226.847.026.086.164.354.66
EV / EBITDA23.6326.5334.2730.6928.3134.8133.7928.6229.1120.0222.78
EV / EBIT25.5028.2737.8533.0931.1737.5436.8130.9131.6821.4423.80
EV / FCF—35.6241.2832.82—47.9053.7851.9648.1051.4431.52

WDFC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin55.1%55.1%53.4%51.0%49.1%54.0%54.6%54.9%55.1%56.2%56.3%
Operating Margin16.7%16.7%16.3%16.7%16.8%18.2%18.9%19.5%19.2%19.9%18.7%
Net Profit Margin14.7%14.7%11.8%12.3%13.0%14.4%14.9%13.2%16.0%13.9%13.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE36.5%36.5%31.6%33.1%34.6%38.9%39.7%37.2%44.2%37.8%35.3%
ROA19.7%19.7%15.7%15.1%15.6%17.7%18.3%18.0%19.0%14.9%15.5%
ROIC26.2%26.2%25.0%22.6%23.8%28.2%27.2%31.5%26.2%24.3%25.3%
ROCE28.9%28.9%27.7%26.7%26.2%27.5%29.1%35.9%29.9%26.4%24.9%

WDFC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.360.360.450.610.820.660.760.560.561.100.87
Debt / EBITDA0.870.870.971.311.611.371.440.901.001.861.57
Net Debt / Equity—0.150.240.380.620.230.410.370.240.840.51
Net Debt / EBITDA0.350.350.530.821.210.480.770.600.431.410.91
Debt / FCF—0.470.640.88—0.661.231.090.723.631.26
Interest Coverage30.5330.5322.3516.1731.6737.1231.9632.7918.8229.9043.74

WDFC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.792.792.472.802.252.813.081.981.962.983.57
Quick Ratio2.012.011.701.821.312.162.391.441.532.513.03
Cash Ratio0.570.570.450.540.341.000.940.370.571.551.85
Asset Turnover—1.301.321.231.191.131.131.401.291.031.12
Inventory Turnover3.493.493.483.042.544.024.494.705.024.715.23
Days Sales Outstanding—70.9972.6266.6163.2766.9772.0862.8261.6761.6462.02

WDFC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.9%1.7%1.3%1.5%1.6%1.2%1.3%1.3%1.2%1.7%1.4%
Payout Ratio55.2%55.2%67.8%67.6%62.4%54.4%59.4%58.8%45.4%50.6%45.0%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.4%3.1%1.9%2.2%2.6%2.1%2.2%2.2%2.6%3.4%3.1%
FCF Yield3.2%2.8%2.5%3.1%—2.1%1.9%2.0%2.1%2.1%3.3%
Buyback Yield0.5%0.4%0.2%0.4%1.1%0.1%0.6%1.2%0.9%2.0%1.9%
Total Shareholder Yield2.4%2.1%1.5%1.9%2.7%1.3%1.9%2.5%2.1%3.8%3.3%
Shares Outstanding—$14M$14M$14M$14M$14M$14M$14M$14M$14M$14M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrong
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

Revenue concentration and input costs

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Margin Expansion Drives Profitability

According to reported quarterly data, WDFC's gross margin expanded 350 basis points to 56.6% in 2026Q3, while operating margin hit 20.7%, the highest in the dataset, indicating strong pricing power.

The sequential improvement in margins from 2024Q2 to 2026Q3 suggests that the company is benefiting from operational leverage and cost efficiencies, as revenue growth outpaced expense growth. The net margin of 15.5% in 2026Q3, up from 11.2% in 2024Q2, reflects not only operational gains but also a lower effective tax rate, which may not be sustainable. Investors should monitor whether margin expansion can persist if input costs rise or if the revenue surge moderates.

ROIC Shows Cyclical Recovery

Based on financial statements, WDFC's ROIC improved to 9.1% in 2026Q3 from 5.5% in 2024Q2, but remains below the cost of capital, suggesting value creation is still in early recovery.

The ROIC trend over the past ten quarters shows volatility, with a low of 5.5% in 2024Q2 and a high of 9.1% in 2026Q3. The improvement is driven by margin expansion and asset efficiency, as asset turnover rose from 0.32 to 0.40. However, ROIC remains modest relative to the company's P/E of 34.75, implying that the market is pricing in sustained improvement. If ROIC does not continue to climb, the valuation may be stretched.

Working Capital Cycle Lengthens

As per quarterly filings, WDFC's cash conversion cycle extended to 117 days in 2026Q3 from 133 days in 2026Q2, driven by a sharp reduction in DIO to 90 days, though DSO remains elevated at 64 days.

The reduction in days inventory outstanding from 110 days in 2026Q1 to 90 days in 2026Q3 suggests improved inventory management, but the cash conversion cycle remains long due to high DSO and DPO. The company's ability to stretch payables is limited, as DPO has remained around 37-45 days. This indicates that working capital efficiency is not a primary driver of cash flow; instead, revenue growth and margin expansion are the key levers.

Leverage Declines Despite Debt Increase

According to balance sheet data, WDFC's D/E improved to 0.41 in 2026Q3 from 0.57 in 2024Q2, while interest coverage rose to 50.84, indicating a more comfortable debt service position.

Total debt increased to $114.4M, but equity grew faster due to retained earnings, leading to a lower D/E ratio. The interest coverage ratio of 50.84 in 2026Q3 is exceptionally high, suggesting that debt service is not a concern. However, the D/EBITDA ratio of 2.61 indicates moderate leverage relative to cash flow, and investors should monitor any potential refinancing risk if interest rates rise, though current coverage provides a strong buffer.

Liquidity Buffer Strengthens

Based on reported figures, WDFC's current ratio improved to 2.65 in 2026Q3 from 2.27 in 2024Q2, with quick ratio at 1.95, indicating a solid liquidity position to meet short-term obligations.

The improvement in liquidity ratios is driven by higher cash balances and efficient working capital management. The quick ratio of 1.95 suggests that even without selling inventory, the company can cover its current liabilities. This provides a cushion against potential operational disruptions or economic downturns. However, the company's reliance on a few key products and geographic concentration could pose risks that liquidity ratios do not capture.

P/E Misleads on Growth Potential

The most commonly misapplied ratio for WDFC is the P/E, which at 34.75 appears expensive, but the forward P/E of 37.36 and PEG of 3.98 suggest the market is pricing in sustained high growth.

The P/E ratio is often used to compare companies across industries, but for WDFC, a specialty chemical company with strong brand loyalty and pricing power, the P/E may understate its growth potential. The PEG ratio of 3.98 indicates that the stock is priced for significant future earnings growth, which may not materialize if revenue growth decelerates. A better metric is EV/EBITDA, which at 28.22 reflects the company's operating performance and is more comparable to peers like Spectrum Brands (11.58) and Central Garden (9.57). Investors should focus on EV/EBITDA and ROIC trends rather than P/E alone.

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WDFC — Frequently Asked Questions

Quick answers to the most common questions about buying WDFC stock.

What is WD-40 Company's P/E ratio?

WD-40 Company's current P/E ratio is 29.0x. The historical average is 26.3x. This places it at the 67th percentile of its historical range.

What is WD-40 Company's EV/EBITDA?

WD-40 Company's current EV/EBITDA is 23.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.4x.

What is WD-40 Company's ROE?

WD-40 Company's return on equity (ROE) is 36.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 30.7%.

Is WDFC stock overvalued?

Based on historical data, WD-40 Company is trading at a P/E of 29.0x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is WD-40 Company's dividend yield?

WD-40 Company's current dividend yield is 1.91% with a payout ratio of 55.2%.

What are WD-40 Company's profit margins?

WD-40 Company has 55.1% gross margin and 16.7% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does WD-40 Company have?

WD-40 Company's Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.