WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
BIT:1WDC - Euronext Milan - US9581021055 - Common Stock - Currency: EUR
1WDC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and the financial health of 1WDC get a neutral evaluation. Nothing too spectacular is happening here. 1WDC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
1WDC had positive earnings in the past year.
1WDC had a positive operating cash flow in the past year.
In multiple years 1WDC reported negative net income over the last 5 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
1WDC has a better Return On Assets (9.76%) than 79.31% of its industry peers.
1WDC has a Return On Equity of 29.56%. This is amongst the best in the industry. 1WDC outperforms 86.21% of its industry peers.
With an excellent Return On Invested Capital value of 18.24%, 1WDC belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROIC | 18.24% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
1WDC has a Profit Margin of 11.07%. This is in the better half of the industry: 1WDC outperforms 79.31% of its industry peers.
With an excellent Operating Margin value of 18.84%, 1WDC belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Operating Margin of 1WDC has declined.
The Gross Margin of 1WDC (36.93%) is comparable to the rest of the industry.
1WDC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.84% | ||
| PM (TTM) | 11.07% | ||
| GM | 36.93% |
OM growth 3Y-39.35%
OM growth 5Y-7.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.72%
GM growth 5Y-0.75%
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.
1WDC has more shares outstanding than it did 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
An Altman-Z score of 2.94 indicates that 1WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 1WDC (2.94) is better than 62.07% of its industry peers.
1WDC has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as 1WDC would need 8.59 years to pay back of all of its debts.
The Debt to FCF ratio of 1WDC (8.59) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that 1WDC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, 1WDC is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 2.94 |
ROIC/WACC2.36
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.56 indicates that 1WDC should not have too much problems paying its short term obligations.
1WDC has a Current ratio (1.56) which is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that 1WDC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, 1WDC is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 267.11% over the past year.
The Revenue has decreased by -1.52% in the past year.
The Revenue has been decreasing by -4.73% on average over the past years.
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
3.2 Future
Based on estimates for the next years, 1WDC will show a very strong growth in Earnings Per Share. The EPS will grow by 80.27% on average per year.
The Revenue is expected to decrease by -3.52% on average over the next years.
EPS Next Y1384.78%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
EPS Next 5Y80.27%
Revenue Next Year-27.71%
Revenue Next 2Y-11.56%
Revenue Next 3Y-7.79%
Revenue Next 5Y-3.52%
3.3 Evolution
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
With a Price/Earnings ratio of 10.31, the valuation of 1WDC can be described as very reasonable.
89.66% of the companies in the same industry are more expensive than 1WDC, based on the Price/Earnings ratio.
1WDC is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
1WDC is valuated reasonably with a Price/Forward Earnings ratio of 11.84.
Based on the Price/Forward Earnings ratio, 1WDC is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
1WDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
72.41% of the companies in the same industry are more expensive than 1WDC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1WDC is valued a bit cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.74 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
1WDC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1WDC's earnings are expected to grow with 157.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y306.71%
EPS Next 3Y157.85%
5. Dividend
5.1 Amount
1WDC has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 2.23, 1WDC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.60, 1WDC pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
BIT:1WDC (7/7/2025, 7:00:00 PM)
56.18
+6.34 (+12.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.34%
Inst Owner ChangeN/A
Ins Owners0.46%
Ins Owner ChangeN/A
Market Cap19.60B
Analysts80.67
Price Target53.16 (-5.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.06%
Min EPS beat(2)-1.74%
Max EPS beat(2)19.85%
EPS beat(4)3
Avg EPS beat(4)10.66%
Min EPS beat(4)-1.74%
Max EPS beat(4)21.78%
EPS beat(8)7
Avg EPS beat(8)36.77%
EPS beat(12)9
Avg EPS beat(12)1.98%
EPS beat(16)13
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.37%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)7
Avg Revenue beat(12)0.89%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)-31.36%
PT rev (3m)-31.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.09%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-16.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.58 | ||
| P/FCF | 26.74 | ||
| P/OCF | 17.42 | ||
| P/B | 4.22 | ||
| P/tB | 22.59 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)5.45
EY9.7%
EPS(NY)4.74
Fwd EY8.44%
FCF(TTM)2.1
FCFY3.74%
OCF(TTM)3.23
OCFY5.74%
SpS35.52
BVpS13.3
TBVpS2.49
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROCE | 24.32% | ||
| ROIC | 18.24% | ||
| ROICexc | 26.46% | ||
| ROICexgc | 61.56% | ||
| OM | 18.84% | ||
| PM (TTM) | 11.07% | ||
| GM | 36.93% | ||
| FCFM | 5.91% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
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 3Y-40.84%
ROICexcg growth 5Y-8.79%
ROICexc growth 3Y-42.6%
ROICexc growth 5Y-9.08%
OM growth 3Y-39.35%
OM growth 5Y-7.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.72%
GM growth 5Y-0.75%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 90.85% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 7.35 | ||
| Cash Conversion | 40.68% | ||
| Profit Quality | 53.44% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 2.94 |
F-Score6
WACC7.73%
ROIC/WACC2.36
Cap/Depr(3y)101.89%
Cap/Depr(5y)88.31%
Cap/Sales(3y)5.46%
Cap/Sales(5y)5.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
EPS Next Y1384.78%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
EPS Next 5Y80.27%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
Revenue Next Year-27.71%
Revenue Next 2Y-11.56%
Revenue Next 3Y-7.79%
Revenue Next 5Y-3.52%
EBIT growth 1Y278.83%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year568.48%
EBIT Next 3Y99.25%
EBIT Next 5Y48.54%
FCF growth 1Y183.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3013.33%
OCF growth 3YN/A
OCF growth 5YN/A