Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

WD-40 Company (WDFC)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$332.41 - $1,326.12$896.75
Multi-Stage$189.30 - $207.15$198.06
Blended Fair Value$547.41
Current Price$216.04
Upside153.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.88%8.75%3.703.483.293.092.822.662.422.181.981.74
YoY Growth--6.48%5.88%6.18%9.84%6.07%9.58%11.17%10.36%13.26%8.97%
Dividend Yield--1.71%1.26%1.36%1.85%1.26%1.04%1.26%1.25%1.65%1.62%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)90.99
(-) Cash Dividends Paid (M)49.47
(=) Cash Retained (M)41.53
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.2011.376.82
Cash Retained (M)41.5341.5341.53
(-) Cash Required (M)-18.20-11.37-6.82
(=) Excess Retained (M)23.3330.1534.70
(/) Shares Outstanding (M)13.5713.5713.57
(=) Excess Retained per Share1.722.222.56
LTM Dividend per Share3.653.653.65
(+) Excess Retained per Share1.722.222.56
(=) Adjusted Dividend5.375.876.20
WACC / Discount Rate6.57%6.57%6.57%
Growth Rate4.88%5.88%6.88%
Fair Value$332.41$896.75$1,326.12
Upside / Downside53.86%315.09%513.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)90.9996.34102.01108.00114.35121.07124.71
Payout Ratio54.36%61.49%68.62%75.74%82.87%90.00%92.50%
Projected Dividends (M)49.4759.2469.9981.8194.77108.97115.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.57%6.57%6.57%
Growth Rate4.88%5.88%6.88%
Year 1 PV (M)55.0655.5956.11
Year 2 PV (M)60.4761.6362.80
Year 3 PV (M)65.6967.5969.52
Year 4 PV (M)70.7373.4776.28
Year 5 PV (M)75.5979.2783.08
PV of Terminal Value (M)2,240.762,349.652,462.72
Equity Value (M)2,568.312,687.182,810.52
Shares Outstanding (M)13.5713.5713.57
Fair Value$189.30$198.06$207.15
Upside / Downside-12.38%-8.32%-4.11%

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