WD-40 Co. Earns High Rating in Growth Investing Model

WD-40 Company has received a 66% rating in the P/B Growth Investor model according to a recent report. This rating reflects the company’s solid fundamentals, while certain investment criteria raised concerns. Investors should consider these factors when evaluating stock performance potentials.

Date: 16-09-2024

AI Rating: 6

Analysis of WD-40 Co (WDFC)

According to the report, WD-40 Co has received a rating of 66% based on its fundamentals and valuation assessed by the P/B Growth Investor model. This rating indicates moderate interest from growth investors, particularly as a score above 80% generally signals stronger interest.

The report highlights that the stock passes the following key investment strategy criteria:

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS

This is positive news for the company, suggesting its operations and asset management are performing well. However, the report also notes several areas of concern where the company did not meet expectations:

ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: FAIL
RESEARCH AND DEVELOPMENT TO ASSETS: FAIL

The failures in these criteria could indicate that WD-40 Co is not investing adequately in advertising, capital expenditures, and research and development, which are crucial for sustained growth. Investors may view this as a slight negative factor affecting the company’s long-term growth potential.

Conclusion

Stocks: WDFC