WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1WDC - US9581021055 - Common Stock
149.9 EUR
-4.2 (-2.73%)
We assign a fundamental rating of 5 out of 10 to 1WDC. 1WDC was compared to 30 industry peers in the Technology Hardware, Storage & Peripherals industry. 1WDC scores excellent on profitability, but there are some minor concerns on its financial health. 1WDC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1WDC had positive earnings in the past year.
In the past year 1WDC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1WDC reported negative net income in multiple years.
In multiple years 1WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
1WDC has a Return On Assets of 17.50%. This is amongst the best in the industry. 1WDC outperforms 90.00% of its industry peers.
The Return On Equity of 1WDC (41.08%) is better than 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 22.95%, 1WDC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROIC | 22.95% |
ROA(3y)0.89%
ROA(5y)2.34%
ROE(3y)3.69%
ROE(5y)6.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 20.94%, 1WDC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of 1WDC has grown nicely.
1WDC's Operating Margin of 23.42% is amongst the best of the industry. 1WDC outperforms 93.33% of its industry peers.
1WDC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.34%, 1WDC is doing good in the industry, outperforming 63.33% of the companies in the same industry.
1WDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.42% | ||
| PM (TTM) | 20.94% | ||
| GM | 39.34% |
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1WDC is creating value.
The number of shares outstanding for 1WDC has been increased compared to 1 year ago.
The number of shares outstanding for 1WDC has been increased compared to 5 years ago.
1WDC has a worse debt/assets ratio than last year.
2.2 Solvency
1WDC has an Altman-Z score of 6.15. This indicates that 1WDC is financially healthy and has little risk of bankruptcy at the moment.
1WDC's Altman-Z score of 6.15 is amongst the best of the industry. 1WDC outperforms 83.33% of its industry peers.
The Debt to FCF ratio of 1WDC is 2.33, which is a good value as it means it would take 1WDC, 2.33 years of fcf income to pay off all of its debts.
1WDC has a better Debt to FCF ratio (2.33) than 76.67% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that 1WDC is not too dependend on debt financing.
1WDC has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.15 |
ROIC/WACC2.76
WACC8.33%
2.3 Liquidity
1WDC has a Current Ratio of 1.21. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, 1WDC is in line with its industry, outperforming 43.33% of the companies in the same industry.
1WDC has a Quick Ratio of 1.21. This is a bad value and indicates that 1WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, 1WDC is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.91%, which is quite impressive.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
The Revenue for 1WDC has decreased by -29.80% in the past year. This is quite bad
The Revenue for 1WDC have been decreasing by -10.67% on average. This is quite bad
EPS 1Y (TTM)107.91%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%0%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
3.2 Future
1WDC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.20% yearly.
Based on estimates for the next years, 1WDC will show a quite strong growth in Revenue. The Revenue will grow by 12.63% on average per year.
EPS Next Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1WDC is valuated quite expensively with a Price/Earnings ratio of 26.86.
1WDC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, 1WDC is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.18, the valuation of 1WDC can be described as rather expensive.
1WDC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1WDC to the average of the S&P500 Index (23.40), we can say 1WDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1WDC is on the same level as its industry peers.
1WDC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 18.98 |
4.3 Compensation for Growth
1WDC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1WDC may justify a higher PE ratio.
1WDC's earnings are expected to grow with 19.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)1.61
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, 1WDC is not a good candidate for dividend investing.
1WDC's Dividend Yield is comparable with the industry average which is at 0.97.
Compared to an average S&P500 Dividend Yield of 2.00, 1WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
The dividend of 1WDC decreases each year by -42.40%.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
3.30% of the earnings are spent on dividend by 1WDC. This is a low number and sustainable payout ratio.
DP3.3%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
BIT:1WDC (12/23/2025, 7:00:00 PM)
149.9
-4.2 (-2.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.33%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap51.25B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target149.89 (-0.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.11
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.17%
Min EPS beat(2)10.76%
Max EPS beat(2)11.58%
EPS beat(4)3
Avg EPS beat(4)10.11%
Min EPS beat(4)-1.74%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)38.17%
EPS beat(12)10
Avg EPS beat(12)7.46%
EPS beat(16)13
Avg EPS beat(16)3.99%
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)2.36%
Max Revenue beat(2)4.41%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)1.36%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)-1.71%
PT rev (3m)89.66%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)13.42%
EPS NY rev (1m)6.03%
EPS NY rev (3m)18.09%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)4.65%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 18.18 | ||
| P/S | 5.02 | ||
| P/FCF | 29.99 | ||
| P/OCF | 25.13 | ||
| P/B | 9.86 | ||
| P/tB | 33.54 | ||
| EV/EBITDA | 18.98 |
EPS(TTM)5.58
EY3.72%
EPS(NY)8.24
Fwd EY5.5%
FCF(TTM)5
FCFY3.33%
OCF(TTM)5.97
OCFY3.98%
SpS29.83
BVpS15.21
TBVpS4.47
PEG (NY)1.48
PEG (5Y)1.61
Graham Number43.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 22.95% | ||
| ROICexc | 34.15% | ||
| ROICexgc | 113.71% | ||
| OM | 23.42% | ||
| PM (TTM) | 20.94% | ||
| GM | 39.34% | ||
| FCFM | 16.76% |
ROA(3y)0.89%
ROA(5y)2.34%
ROE(3y)3.69%
ROE(5y)6.28%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y58.03%
ROICexgc growth 5Y82.85%
ROICexc growth 3Y35.09%
ROICexc growth 5Y70.9%
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 96.29% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 9.31 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 6.15 |
F-Score7
WACC8.33%
ROIC/WACC2.76
Cap/Depr(3y)92.08%
Cap/Depr(5y)98.32%
Cap/Sales(3y)8.39%
Cap/Sales(5y)7.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)107.91%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%0%
EPS Next Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year82.36%
EBIT Next 3Y33.64%
EBIT Next 5Y24.43%
FCF growth 1Y220.78%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y330.77%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%
WESTERN DIGITAL CORP / 1WDC.MI FAQ
Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to 1WDC.MI.
Can you provide the valuation status for WESTERN DIGITAL CORP?
ChartMill assigns a valuation rating of 3 / 10 to WESTERN DIGITAL CORP (1WDC.MI). This can be considered as Overvalued.
How profitable is WESTERN DIGITAL CORP (1WDC.MI) stock?
WESTERN DIGITAL CORP (1WDC.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WESTERN DIGITAL CORP (1WDC.MI) stock?
The Price/Earnings (PE) ratio for WESTERN DIGITAL CORP (1WDC.MI) is 26.86 and the Price/Book (PB) ratio is 9.86.
What is the financial health of WESTERN DIGITAL CORP (1WDC.MI) stock?
The financial health rating of WESTERN DIGITAL CORP (1WDC.MI) is 5 / 10.