WD-40 CompanyWDFCCOMMENTJan 17, 2024Stock price when the opinion was issued
As of May 29, 2026. Market Open.
We feel WDFC is a great business, and it is a smaller name ($2.7B market cap), but its growth rate has slowed in recent years, which has caused its price to stagnate. Margins are generally moving in the right direction, but they are cyclical, and its valuation has contracted from above 50X forward earnings to 32X today. It pays a decent yield of 2%, and we think it can be a decent compounder over time, but it is fairly small, is not without its risks, and we think it can be a decent defensive-type name over a long period of time, but we would not expect rapid growth anytime soon.
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He missed this. They have a history of delivering good quarters, then bad, then good, then bad.