WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
BIT:1WDC - Euronext Milan - US9581021055 - Common Stock - Currency: EUR
Taking everything into account, 1WDC scores 4 out of 10 in our fundamental rating. 1WDC was compared to 27 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year 1WDC was profitable.
1WDC had a positive operating cash flow in the past year.
In multiple years 1WDC reported negative net income over the last 5 years.
In multiple years 1WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.76%, 1WDC is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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's Profit Margin of 11.07% is fine compared to the rest of the industry. 1WDC outperforms 79.31% of its industry peers.
The Operating Margin of 1WDC (18.84%) is better than 93.10% of its industry peers.
In the last couple of years the Operating Margin of 1WDC has declined.
1WDC has a Gross Margin (36.93%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1WDC has remained more or less at the same level.
| 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
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.
Compared to 5 years ago, 1WDC has more shares outstanding
Compared to 1 year ago, 1WDC has a worse debt to assets ratio.
2.2 Solvency
1WDC has an Altman-Z score of 2.94. This is not the best score and indicates that 1WDC is in the grey zone with still only limited risk for bankruptcy at the moment.
1WDC has a better Altman-Z score (2.94) 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.
Looking at the Debt to FCF ratio, with a value of 8.59, 1WDC is in line with its industry, outperforming 58.62% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that 1WDC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, 1WDC is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 2.94 |
ROIC/WACC2.36
WACC7.73%
2.3 Liquidity
1WDC has a Current Ratio of 1.56. 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 1.56, 1WDC perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
1WDC has a Quick Ratio of 1.31. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
1WDC's Quick ratio of 1.31 is fine compared to the rest of the industry. 1WDC outperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 267.11%, which is quite impressive.
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.
Based on estimates for the next years, 1WDC will show a decrease in Revenue. The Revenue will decrease by -3.52% on average per year.
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
1WDC is valuated correctly with a Price/Earnings ratio of 12.04.
1WDC's Price/Earnings ratio is rather cheap when compared to the industry. 1WDC is cheaper than 89.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. 1WDC is valued rather cheaply when compared to this.
1WDC is valuated correctly with a Price/Forward Earnings ratio of 13.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1WDC indicates a somewhat cheap valuation: 1WDC is cheaper than 68.97% of the companies listed in the same industry.
1WDC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WDC is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1WDC indicates a somewhat cheap valuation: 1WDC is cheaper than 62.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.23 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The 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
With a yearly dividend of 0.60%, 1WDC is not a good candidate for dividend investing.
1WDC's Dividend Yield is a higher than the industry average which is at 2.24.
With a Dividend Yield of 0.60, 1WDC pays less dividend than the S&P500 average, which is at 2.39.
| 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 (8/1/2025, 7:00:00 PM)
65.62
+15.79 (+31.67%)
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 Cap22.89B
Analysts80.67
Price Target53.16 (-18.99%)
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 | 12.04 | ||
| Fwd PE | 13.83 | ||
| P/S | 1.85 | ||
| P/FCF | 31.23 | ||
| P/OCF | 20.34 | ||
| P/B | 4.93 | ||
| P/tB | 26.38 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)5.45
EY8.31%
EPS(NY)4.74
Fwd EY7.23%
FCF(TTM)2.1
FCFY3.2%
OCF(TTM)3.23
OCFY4.92%
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