Home Sectors Basic Materials Long or Short: WD-40 Company (NASDAQ: WDFC)

Long or Short: WD-40 Company (NASDAQ: WDFC)

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WD-40 Company trades as part of the chemicals industry and trades as part of the basic materials sector. WD-40 Co develops and sells products that solve problems in workshops, factories and homes. The firm sells only WD-40 product. It has product groups maintenance products and homecare and cleaning products.

Previous Intraday Trading Performance:

The WDFC stock showed a previous change of 0.59% with an open at 163.21 and a close of 163.99. It reached an intraday high of 165.42 and a low of 163.05.

SeekingAlpha:  WD-40 Company 2019 Q2 – Results – Earnings Call Slides

Liquidity:

The stock has a market cap of $2.3b with 13.8m shares outstanding, of which the float is 13.2m shares. Trading volume reached 78,378 shares compared to its average volume of 109,631 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, WD-40 Company shares returned -0.67% and in the past 30 trading days it returned -2.25%. Over three months, it changed -5.47%. In one year it has changed 25.97% and within that year its 52-week high was 187.50 and its 52-week low was 133.00. WDFC stock is 23.30% above its 52 Week Low.

Our calculations show a 200 day moving average of 170.36 and a 50 day moving average of 168.46. Currently WDFC stock is trading -3.74% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  WD-40 Company (WDFC) CEO Garry Ridge on Q2 2019 Results – Earnings Call Transcript

Earnings:

The last annual fiscal EPS for the company was reported at 4.64 that ended on 31st of August 2018, which according to the previous close, that is a PE of 35.34. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.95. The TTM EPS is 4.18, which comes to a TTM PE of 39.23. Historically, the PE high was 47.90 and the PE low was 22.70. If the stock reached its PE low, that would represent a price of 94.89, which is a decrease of -42.14%.

The dividend per share is currently 2.44, which is a dividend yield of 1.49%. Also, the payout ratio is 58.37%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 52.35, which means it may be overvalued by -213.25%

Indicators to Watch:

The current calculated beta is 0.24

SeekingAlpha:  WD-40 Company (WDFC) CEO Garry Ridge on Q2 2019 Results – Earnings Call Transcript

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 44.37%, return on assets is 19.63%, profit margin is 16.29%, price-to-sales is 5.46 and price-to-book is 14.43.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 6  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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