Is Good Ol’ WD-40 Still Competitve?
Ah, the good ol’ WD-40 company (NASDAQ:WDFC). This is company that makes products many of us are familiar with. For me, it takes me back to my childhood where I remember my grandfather saying such things as, “Oh, that bolt is stuck? Put some WD-40 on it,” and, “That bike chain looks rusty, hit it with some WD, Christopher.” Alas, the stock has been rewarding to shareholders, returning 58 percent in the last two years. But after a lackluster earnings report, is WD-40 a stock to be in?
To answer this question, we must understand what the company does. Most are familiar with the flagship anti-rust product I alluded to above with my childhood recollections. For those who don’t know much else about the company it provides multi-purpose maintenance products under the WD-40 brand for household, marine, automotive, construction, repair, sporting goods, gardening, and various industrial application. This inlcudes multi-purpose drip oil and spray lubricant, and other specialty maintenance products under the 3-IN-ONE brand for household, locksmithing, HVAC, marine, farming, construction, and jewelry manufacturing applications. It also produces industrial grade and specialty maintenance products that include lubricants, penetrants, degreasers, and cleaners under the Blue Works brand for various industrial applications.
But that is not all. The company also provides specialty problem solving products, which comprise penetrants, water resistant silicone sprays, corrosion inhibitors, and rust removers under the WD-40 Specialist name as well as bicycle maintenance products that include wet and dry chain lubricants, heavy-duty degreasers, foaming bike wash, and frame protectants under the WD-40 Bike name.. In addition, it offers homecare and cleaning products, such as liquid mildew stain removers and automatic toilet bowl cleaners under the X-14 brand, automatic toilet bowl cleaners under the 2000 Flushes brand, room and rug deodorizers in the form of powder, aerosol foam, and trigger spray under the Carpet Fresh brand. Finally it offers aerosol carpet stain removers, and liquid trigger carpet stain and odor eliminators under the Spot Shot and the 1001 brands.