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WD-40 CoWDFC -0.76%96 Degree of Operating Leverage is 1.72 as of May. 2026. GuruFocus rates WDFC with a GF Score™ of 96/100 and a GF Value™ of $270.74 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,558 Chemicals companies, WD-40 Co ranks worse than 55.26% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
WD-40 Co's Degree of Operating Leverage for the quarter that ended in May. 2026 was 1.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for WD-40 Co's Degree of Operating Leverage or its related term are showing as below:
WDFC's Degree of Operating Leverage is ranked worse than 55.26% of 1558
companies
in the Chemicals industry
Industry Median: 1.265
vs WDFC: 1.72
WD-40 Co (NAS:WDFC) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
WD-40 Co Degree of Operating Leverage Related Terms
WD-40 Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for WD-40 Co's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WDFC vs KWR, FUL, HWKN: Degree of Operating Leverage Comparison
For the Specialty Chemicals subindustry, WD-40 Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
WD-40 Co Degree of Operating Leverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, WD-40 Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where WD-40 Co's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.72 mean?
WD-40 Co (WDFC) has a Degree of Operating Leverage of 1.72 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for WD-40 Co and its competitors. According to the industry distribution chart, WD-40 Co ranks #861 out of 1558 companies in the Chemicals industry, placing it in the top 55.3%.
Is WD-40 Co's Degree of Operating Leverage too high?
WD-40 Co's current Degree of Operating Leverage is 1.72. The Chemicals industry median Degree of Operating Leverage is 1.27. WD-40 Co's value of 1.72 is 36% above this industry median. Based on the distribution chart, WD-40 Co ranks #861 out of 1558 companies in the Chemicals industry, which is below the industry midpoint. Overall, WD-40 Co has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does WD-40 Co's Degree of Operating Leverage compare to KWR and FUL?
According to the Chemicals industry distribution chart, WD-40 Co ranks #861 out of 1558 companies for Degree of Operating Leverage. This places WD-40 Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.27. WD-40 Co's value of 1.72 is 36% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Chemicals company?
The median Degree of Operating Leverage among Chemicals companies is 1.27, based on 1,558 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. WD-40 Co's current Degree of Operating Leverage of 1.72 is 36% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for WD-40 Co and its competitors. For the Chemicals industry, the median Degree of Operating Leverage is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WD-40 Co's current Degree of Operating Leverage is 1.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WD-40 Co stock overvalued right now?
Based on GuruFocus' analysis, WD-40 Co (WDFC) is currently considered Modestly Undervalued. The stock's GF Value™ is $270.74, compared to a current price of $210.40 — trading 22.3% below its estimated fair value. The current Degree of Operating Leverage is 1.72 and 36% above the Chemicals industry median of 1.27. WD-40 Co's overall GF Score™ is 96/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For WD-40 Co (WDFC), the current Degree of Operating Leverage is 1.72 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is WD-40 Co (WDFC) Overvalued in 2026?
Based on GuruFocus' analysis, WD-40 Co stock appears to be undervalued.
The current stock price of $210.40 is trading 22.3% below its estimated GF Value™ of $270.74.
GuruFocus considers WD-40 Co to be Modestly Undervalued.
Key valuation signals for WDFC:
Degree of Operating Leverage: 1.72
GF Value™: $270.74 vs. price of $210.40 (22.3% below fair value)
Industry Position: 36% above the Chemicals median (#861 of 1558)
No single metric tells the full story. See the WDFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
WD-40 Co is a global marketing organization focused on developing and selling products that solve maintenance and cleaning problems internationally. It offers two product groups: maintenance products, including the flagship WD-40 Multi-Use Product, which serves as a lubricant, rust preventative, penetrant, and moisture displacer, marketed globally; and homecare and cleaning products, mainly sold in North America, the UK, and Australia. The company distributes its products through hardware stores, automotive parts outlets, industrial suppliers, mass retailers, online platforms, and specialty retailers across the Americas, EIMEA, and Asia-Pacific, with the majority of revenue generated in the Americas.
96GF Score
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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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