WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
BIT:1WDC - US9581021055 - Common Stock
69.26 EUR
+3.04 (+4.59%)
We assign a fundamental rating of 5 out of 10 to 1WDC. 1WDC was compared to 29 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1WDC belongs to the best of the industry regarding profitability, there are 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.
In the past year 1WDC had a positive cash flow from operations.
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 Return On Assets of 13.16%. This is amongst the best in the industry. 1WDC outperforms 89.66% of its industry peers.
1WDC has a Return On Equity of 33.25%. This is amongst the best in the industry. 1WDC outperforms 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 24.52%, 1WDC belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROIC | 24.52% |
ROA(3y)0.9%
ROA(5y)2.34%
ROE(3y)3.72%
ROE(5y)6.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1WDC (13.87%) is better than 89.66% of its industry peers.
In the last couple of years the Profit Margin of 1WDC has grown nicely.
1WDC has a Operating Margin of 21.13%. This is amongst the best in the industry. 1WDC outperforms 93.10% of its industry peers.
1WDC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 38.00%, 1WDC is doing good in the industry, outperforming 65.52% of the companies in the same industry.
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 3Y33.04%
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.
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.
The debt/assets ratio for 1WDC is higher compared to a year ago.
2.2 Solvency
1WDC has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as 1WDC would need 3.67 years to pay back of all of its debts.
The Debt to FCF ratio of 1WDC (3.67) is comparable to the rest of the industry.
1WDC has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
1WDC has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | N/A |
ROIC/WACC3.13
WACC7.84%
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.
Looking at the Current ratio, with a value of 1.08, 1WDC is in line with its industry, outperforming 41.38% 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.
Looking at the Quick ratio, with a value of 0.84, 1WDC is in line with its industry, outperforming 41.38% 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.
The Revenue for 1WDC has decreased by -15.70% 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)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
1WDC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
Based on estimates for the next years, 1WDC will show a small growth in Revenue. The Revenue will grow by 7.74% on average per year.
EPS Next Y-15.89%
EPS Next 2Y-6.41%
EPS Next 3Y5.08%
EPS Next 5Y10.07%
Revenue Next Year9.32%
Revenue Next 2Y5.4%
Revenue Next 3Y7.82%
Revenue Next 5Y7.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 12.28, 1WDC is valued correctly.
Based on the Price/Earnings ratio, 1WDC is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, 1WDC is valued rather cheaply.
A Price/Forward Earnings ratio of 14.61 indicates a correct valuation of 1WDC.
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 (22.48), we can say 1WDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WDC is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
1WDC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
1WDC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-6.41%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
1WDC has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 2.21, 1WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 1WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of 1WDC decreases each year by -42.42%.
Dividend Growth(5Y)-42.42%
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 2Y-6.41%
EPS Next 3Y5.08%
BIT:1WDC (8/27/2025, 7:00:00 PM)
69.26
+3.04 (+4.59%)
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 Cap24.03B
Analysts80
Price Target72.69 (4.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.11
Dividend Growth(5Y)-42.42%
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)37.78%
PT rev (3m)-6.14%
EPS NQ rev (1m)16.53%
EPS NQ rev (3m)19.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.52%
Revenue NQ rev (1m)8.08%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 14.61 | ||
| P/S | 2.11 | ||
| P/FCF | 21.81 | ||
| P/OCF | 16.56 | ||
| P/B | 5.05 | ||
| P/tB | 22.93 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)5.64
EY8.14%
EPS(NY)4.74
Fwd EY6.85%
FCF(TTM)3.18
FCFY4.59%
OCF(TTM)4.18
OCFY6.04%
SpS32.85
BVpS13.7
TBVpS3.02
PEG (NY)N/A
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROCE | 32.69% | ||
| ROIC | 24.52% | ||
| ROICexc | 32.53% | ||
| ROICexgc | 97.84% | ||
| OM | 21.13% | ||
| PM (TTM) | 13.87% | ||
| GM | 38% | ||
| FCFM | 9.67% |
ROA(3y)0.9%
ROA(5y)2.34%
ROE(3y)3.72%
ROE(5y)6.29%
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 3Y46.82%
ROICexcg growth 5Y74.95%
ROICexc growth 3Y32.58%
ROICexc growth 5Y68.99%
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y33.04%
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 | 3.67 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 90.24% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.92% | ||
| Profit Quality | 69.71% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | N/A |
F-Score7
WACC7.84%
ROIC/WACC3.13
Cap/Depr(3y)91.71%
Cap/Depr(5y)98.09%
Cap/Sales(3y)6.22%
Cap/Sales(5y)6.28%
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 Y-15.89%
EPS Next 2Y-6.41%
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 Year9.32%
Revenue Next 2Y5.4%
Revenue Next 3Y7.82%
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 1Y264.4%
FCF growth 3Y19.21%
FCF growth 5Y48.63%
OCF growth 1Y675.17%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%