2024-06-23 13:56:08 ET
Summary
- WD-40 Company owns multiple household maintenance and cleaning brands, with WD-40 being the most famous.
- Historical financial performance shows consistent growth in revenues and EBITDA, outperforming the S&P 500 on a total return basis.
- Recent financial results for Q2 were mediocre, with a focus on steady growth in maintenance products and 'premiumized' products for long-term growth.
- Despite a positive guidance outlook, the long-term targets in sales growth and margin expansion aren't enough to justify the current valuation.
Introduction
WD-40 Company ( WDFC ) has been an exceptional compounder over time, delivering impressive long-term returns to shareholders. With a high quality business model of manufacturing and selling household maintenance and cleaning products, it's hard to think of a more defensible business that's unlikely to be disrupted any time soon....
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For further details see:
WD-40: Oiling Up For Growth, Sticking Points On Valuation