Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, lubricant specialist WD-40
With that in mind, let's take a closer look at WD-40's business and see what CAPS investors are saying about the stock right now.
WD-40 facts
Headquarters (Founded) | San Diego (1953) |
Market Cap | $654 million |
Industry | Household products |
Trailing-12-Month Revenue | $318.59 million |
Management |
CEO Garry Ridge (since 1997) CFO Jay Rembolt (since 2008) |
Return on Equity (Average, Past 3 Years) | 17.2% |
Cash/Debt | $59.14 million / $21.4 million |
Dividend Yield | 2.8% |
Competitors |
Church & Dwight
Clorox |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91.5% of the 153 members who have rated WD-40 believe the stock will outperform the S&P 500 going forward. These bulls include dcrednek and baekeland108.
Just last week, dcrednek tapped the stock as a particularly slick selection: "WD-40, the timeless stalwart of aerosol lubricants (and far and away the king of market share among this group of products). ... Who says buy and hold is dead?"
WD-40 might be as close to a one-hit product wonder as you'll find, but that single product has fueled consistently healthy performance over the years. WD-40's returns on equity are consistently in the 20% range, and have never slipped under 15% in the past decade. And with a lower debt-to-equity ratio (0.05) than rivals Church & Dwight (0.3) and Clorox (25.6), as well as other cleaning specialists like Procter & Gamble
CAPS member baekeland108 sums up the bull case:
I try to avoid companies offering a mono product (at least mix it up, slap a new label on it with the wording "New & Improved" and viola a new product). WD-40 does not play that game: They know what they have; the product works famously for what it is listed as and then some. ... WD-40 is a product that has been used by too many Grandfathers to count.
What do you think about WD-40, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!