WD-40 Company (NasdaqGS:WDFC) FY 2026 Conference January 13, 2026 10:00 AM ET Company ParticipantsSteve Brass - CEOSara Hyzer - CFOSara HyzerGood morning, everyone. Thanks. Welcome to the WD-40 presentation. We're thrilled to have them here. Presenting for the company, Sara Hyzer is going to start, the CFO, and then Steve Brass is also here, and Wendy Kelley with IR is also back in the audience. So take it away, sir.Steve BrassAll right. Great. Thank you, everyone. All right. Is my mic working? I'm good.Sar ...

分组1: Berkshire Hathaway - Berkshire Hathaway has a strong balance sheet and its core insurance business remains stable despite challenges from California wildfires [1] - Greg Abel took over leadership on January 1, managing $670 billion in investable assets and numerous subsidiaries [2] - The stock price has stagnated since Buffett's retirement announcement, but the company continues to generate strong cash flow and grow its assets [8] 分组2: Gates Foundation - The Gates Foundation receives annual donations from Warren Buffett, including a recent donation of 9.4 million Class B shares of Berkshire Hathaway [4] - The foundation's trust holds a portfolio worth approximately $38 billion, with 59% invested in three major companies [5] - Bill Gates aims to give away nearly all his wealth through the foundation over the next 20 years [6][7] 分组3: WM (Waste Management) - WM operates a solid waste collection and disposal business with a competitive moat due to regulatory barriers for new landfills [10] - The company has shown strong revenue growth and improved operating margins, even amidst challenges in the recycling market [11] - WM trades at an attractive valuation with an enterprise value to EBITDA ratio of less than 14, making it a solid investment option [12] 分组4: Canadian National Railway - Canadian National Railway has a wide competitive moat and geographic advantages, operating tracks from coast to coast in Canada and into the U.S. [13][14] - The company has managed to offset declines in certain freight categories with increases in others, although overall volume growth has been modest [15] - With an enterprise value to EBITDA ratio of less than 12, Canadian National Railway is considered a good long-term value stock [18]

Core Viewpoint - Monness, Crespi, Hardt downgraded PayPal from Buy to Neutral due to concerns regarding earnings expectations and the broader consumer environment [1] Group 1: Earnings Expectations - The firm believes that current calendar-year 2026 estimates for PayPal have not been sufficiently reduced [2] - Analysts noted less encouraging intra-quarter commentary and longer-than-expected ramp timelines [2] Group 2: Consumer Environment - There is growing macroeconomic weakness among lower-income U.S. consumers, who represent approximately 90% of consumers but account for about 50% of total spending [2] Group 3: Investment Opportunities - Analysts suggested that more attractive entry points for PayPal stock could emerge in the future [3] - The firm reflected that profits might have been better realized earlier during the stock's rally due to "low-hanging fruit" initiatives [3] Group 4: Competitive Landscape - While the erosion of PayPal's competitive moat has slowed under CEO Alex Chriss, the recent initiatives do not necessarily indicate a widening moat [3]

Core Viewpoint - TD Cowen raised its price target on JPMorgan Chase to $375 from $370 while maintaining a Buy rating, highlighting the firm's strengthening competitive advantages in its Commercial and Investment Bank division [1] Group 1: Competitive Advantages - Recent discussions with Troy Rohrbaugh, co-CEO of JPMorgan's Commercial & Investment Bank, reinforced confidence in the firm's execution of a strategy aimed at gaining market share while making strategic investments [2] - The firm's scaled operating platform, Kinexys, is considered one of the most valuable strategic assets in the industry, deepening JPMorgan's competitive moat [2] Group 2: Investment Opportunity - TD Cowen reiterated JPMorgan as its top pick among money-center banks, noting that recent selling pressure following an expense update has created an attractive buying opportunity [3] - Shares are trading at approximately 14.2 times projected 2027 earnings, indicating that JPMorgan appears undervalued relative to its leadership position and role in driving innovation across financial services [3] Group 3: Rating Justification - The Buy rating was reaffirmed based on the company's durable franchise, strategic investments, and long-term earnings power [4]

Summary of Netflix Inc. Acquisition of Warner Bros. and HBO Company and Industry - **Company**: Netflix Inc (NFLX) - **Industry**: Media & Entertainment, specifically streaming services Key Points and Arguments 1. **Acquisition Strategy**: Netflix's acquisition of Warner Bros. and HBO is aimed at leveraging WB's content with Netflix's distribution capabilities to create additional value beyond the purchase price of over $80 billion [1][5][10] 2. **Market Position**: The acquisition is seen as a bold move that could further solidify Netflix's leadership in the streaming market, despite the risks associated with past media mergers [3][4] 3. **Financial Metrics**: Netflix shares are currently valued at approximately 25 times the estimated 2027 adjusted EPS, indicating a favorable risk/reward scenario [4][10] 4. **Revenue and EBITDA Growth**: The combined entity is expected to see significant growth, with projections of double-digit adjusted EBITDA growth from Warner Bros. and HBO, alongside anticipated synergies of $2-3 billion [6][10] 5. **Long-term Value Creation**: The long-term success of the acquisition hinges on Netflix's ability to migrate WB and HBO's intellectual property onto its platform, which could enhance its competitive advantage [12][17] 6. **Content Library**: Warner Bros. brings a rich catalog of over 100 years of film and television content, which Netflix can exploit to drive subscriber engagement and revenue [12][14] 7. **Risks**: Key risks include potential earnings dilution if Netflix shifts focus away from theatrical distribution and third-party licensing, as well as the need to maintain talent relationships during industry uncertainties [15][16][17][18] 8. **Regulatory Considerations**: The acquisition may face regulatory scrutiny, particularly from the DOJ regarding anti-trust laws, although it is noted that Netflix and HBO together hold less than 10% of the viewing share in the U.S. [18][19] 9. **Impact on Competitors**: The acquisition could negatively affect other media companies that rely on WB for content, as Netflix may reduce supply to these buyers [23] 10. **Pro Forma Financials**: The pro forma analysis indicates that the combined revenues and EBITDA will predominantly come from streaming, despite WB's traditional revenue streams from theatrical distribution [29][36] Additional Important Insights - **Market Capitalization**: As of December 4, 2025, Netflix's market capitalization stands at approximately $446.2 billion [8] - **Stock Performance**: The current stock price is $103.22, with a price target set at $150.00, reflecting a premium due to Netflix's growth profile [8][38] - **Future Projections**: The pro forma income statement estimates significant revenue growth from both Netflix and WB, with total pro forma revenues projected to reach $99.4 billion by 2030 [36] - **Free Cash Flow**: The acquisition is expected to initially dilute free cash flow but is projected to improve over time as synergies are realized [37] This summary encapsulates the strategic rationale, financial implications, and potential risks associated with Netflix's acquisition of Warner Bros. and HBO, providing a comprehensive overview for stakeholders and investors.

Core Viewpoint - River Road Asset Management expresses significant disappointment with UniFirst's Board and management for rejecting a proposed acquisition by Cintas, which was seen as a breach of fiduciary duty and detrimental to shareholder interests [2][6]. Company Performance - UniFirst's financial performance peaked in FY19, but the company has since struggled with labor and benefits inflation, merchandise cost pressure, and limited pricing power to offset these challenges [3][6]. - Under CEO Steve Sintros, UniFirst has lagged behind Cintas in key operational metrics, leading to a widening valuation gap between the two companies [4][6]. Strategic Alternatives - River Road advocates for the exploration of strategic alternatives, including a potential sale of UniFirst, to maximize shareholder value and mitigate execution risks associated with the current operational strategy [7]. Market Context - The competitive landscape in the laundry industry emphasizes the importance of scale, with route density providing advantages in margins and service levels [3]. - The rejection of the Cintas offer has led to a decline in UniFirst's stock price, which has fallen below pre-offer levels, reflecting ongoing operational challenges and a lack of confidence in future growth [6].

Core Insights - The discussion revolves around the competitive advantages and differentiation of Keysight Technologies in the market, particularly in relation to its share among major OEMs [1] Competitive Moat and Differentiation - Keysight has achieved near unanimous market share across various end markets with major OEMs, indicating a strong competitive position [1] - The factors contributing to this competitive moat include technology, speed to market, services, and a skilled base of engineers familiar with Keysight's technology [1]

Core Viewpoint - Costco's stock has underperformed recently, declining about 7% over the past year, but it remains a strong buy due to solid sales growth and earnings performance [2][11]. Group 1: Financial Performance - Costco's fourth-quarter sales increased by 8% to $86.1 billion, and earnings per share rose by 11% to $5.87, surpassing analysts' expectations [4]. - Membership fees reached $1.7 billion in the fourth quarter, marking a 17% increase from the previous year [7]. Group 2: Competitive Advantage - Costco has approximately 80 million members globally, with a high membership renewal rate of about 90%, indicating strong customer loyalty [6]. - The company holds 60% of the domestic warehouse club market, and there has been an 11% increase in signups for its more expensive Executive Membership over the past decade [8]. Group 3: Resilience in Economic Downturns - Costco's business model allows it to thrive during economic downturns, as consumers seek to save money, making membership a financially prudent choice [9][10]. - The high renewal rates suggest that members are likely to maintain their memberships even in challenging economic conditions [10].

Core Viewpoint - Morgan Stanley has reduced its price target on CarMax shares but still sees potential for upside despite the competitive pressure from Carvana [1] Company Summary - CarMax's shares have been downgraded by Morgan Stanley, indicating a cautious outlook on the company's stock performance [1] - Despite the price target cut, Morgan Stanley believes that CarMax has opportunities for growth in the market [1] Industry Summary - The used car market is experiencing increased competition, particularly from Carvana, which poses challenges for CarMax [1] - The competitive landscape is evolving, and companies in the used car sector must adapt to maintain market share [1]

Core Insights - The article expresses a positive outlook on ALV shares, indicating a beneficial long position held by the analyst [1]. Group 1 - The analyst emphasizes the importance of conducting personal research before making investment decisions, highlighting the inherent risks involved in investing [2]. - It is noted that past performance does not guarantee future results, suggesting a cautious approach to investment evaluations [3].