WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
Europe - BIT:1WDC - US9581021055 - Common Stock
115.74 EUR
+4.72 (+4.25%)
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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1WDC was profitable.
1WDC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1WDC reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: 1WDC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of 1WDC (13.16%) is better than 88.89% of its industry peers.
The Return On Equity of 1WDC (33.25%) is better than 92.59% of its industry peers.
With an excellent Return On Invested Capital value of 24.52%, 1WDC belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROIC | 24.52% |
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
1WDC's Profit Margin of 13.87% is amongst the best of the industry. 1WDC outperforms 88.89% of its industry peers.
1WDC's Profit Margin has improved in the last couple of years.
The Operating Margin of 1WDC (21.13%) is better than 92.59% of its industry peers.
In the last couple of years the Operating Margin of 1WDC has grown nicely.
1WDC has a Gross Margin of 38.00%. This is in the better half of the industry: 1WDC outperforms 62.96% of its industry peers.
1WDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 13.87% | ||
| GM | 38% |
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
1WDC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 4.06. This indicates that 1WDC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.06, 1WDC is doing good in the industry, outperforming 74.07% of the companies in the same industry.
1WDC has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as 1WDC would need 3.68 years to pay back of all of its debts.
1WDC has a Debt to FCF ratio (3.68) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.45 indicates that 1WDC is not too dependend on debt financing.
The Debt to Equity ratio of 1WDC (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 4.06 |
ROIC/WACC2.99
WACC8.21%
2.3 Liquidity
1WDC has a Current Ratio of 1.08. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, 1WDC perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
1WDC has a Quick Ratio of 1.08. This is a bad value and indicates that 1WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, 1WDC perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1828.95%, which is quite impressive.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
1WDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.70%.
The Revenue for 1WDC have been decreasing by -10.67% on average. This is quite bad
EPS 1Y (TTM)1828.95%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%15.28%
Revenue 1Y (TTM)-15.7%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-30.79%
3.2 Future
The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
1WDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.74% yearly.
EPS Next Y0.03%
EPS Next 2Y3.9%
EPS Next 3Y5.08%
EPS Next 5Y10.07%
Revenue Next Year17.43%
Revenue Next 2Y11.12%
Revenue Next 3Y7.79%
Revenue Next 5Y7.74%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.67, 1WDC is valued on the expensive side.
1WDC's Price/Earnings ratio is rather cheap when compared to the industry. 1WDC is cheaper than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. 1WDC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 20.67 indicates a rather expensive valuation of 1WDC.
Based on the Price/Forward Earnings ratio, 1WDC is valued a bit cheaper than 62.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1WDC to the average of the S&P500 Index (23.32), we can say 1WDC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WDC is valued a bit cheaper than 66.67% of the companies in the same industry.
1WDC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.84 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1WDC may justify a higher PE ratio.
PEG (NY)751.29
PEG (5Y)1.24
EPS Next 2Y3.9%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
1WDC has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 2.37, 1WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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
1WDC pays out 2.39% of its income as dividend. This is a sustainable payout ratio.
DP2.39%
EPS Next 2Y3.9%
EPS Next 3Y5.08%
BIT:1WDC (10/3/2025, 7:00:00 PM)
115.74
+4.72 (+4.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.54%
Inst Owner ChangeN/A
Ins Owners0.46%
Ins Owner ChangeN/A
Market Cap40.15B
Analysts80
Price Target79.03 (-31.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.11
Dividend Growth(5Y)-42.4%
DP2.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.3%
Min EPS beat(2)10.76%
Max EPS beat(2)19.85%
EPS beat(4)3
Avg EPS beat(4)7.91%
Min EPS beat(4)-1.74%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)37.78%
EPS beat(12)9
Avg EPS beat(12)2.7%
EPS beat(16)13
Avg EPS beat(16)3.31%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)4.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.44%
Revenue beat(12)8
Avg Revenue beat(12)1.41%
Revenue beat(16)9
Avg Revenue beat(16)0.86%
PT rev (1m)8.72%
PT rev (3m)2.04%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)19.75%
EPS NY rev (1m)18.93%
EPS NY rev (3m)-11.43%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)8.59%
Revenue NY rev (1m)7.42%
Revenue NY rev (3m)8.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 20.67 | ||
| P/S | 3.55 | ||
| P/FCF | 36.84 | ||
| P/OCF | 27.87 | ||
| P/B | 8.51 | ||
| P/tB | 41.01 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)5.6
EY4.84%
EPS(NY)5.6
Fwd EY4.84%
FCF(TTM)3.14
FCFY2.71%
OCF(TTM)4.15
OCFY3.59%
SpS32.61
BVpS13.61
TBVpS2.82
PEG (NY)751.29
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROCE | 32.69% | ||
| ROIC | 24.52% | ||
| ROICexc | 32.53% | ||
| ROICexgc | 101.23% | ||
| OM | 21.13% | ||
| PM (TTM) | 13.87% | ||
| GM | 38% | ||
| FCFM | 9.63% |
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
ROICexcg growth 3Y48.5%
ROICexcg growth 5Y76.15%
ROICexc growth 3Y32.58%
ROICexc growth 5Y68.99%
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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 91.35% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 51.92% | ||
| Profit Quality | 69.44% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 4.06 |
F-Score7
WACC8.21%
ROIC/WACC2.99
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)1828.95%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%15.28%
EPS Next Y0.03%
EPS Next 2Y3.9%
EPS Next 3Y5.08%
EPS Next 5Y10.07%
Revenue 1Y (TTM)-15.7%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-30.79%
Revenue Next Year17.43%
Revenue Next 2Y11.12%
Revenue Next 3Y7.79%
Revenue Next 5Y7.74%
EBIT growth 1Y952.89%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year53.54%
EBIT Next 3Y17.97%
EBIT Next 5Y12.7%
FCF growth 1Y263.76%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y675.17%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%