WESTERN DIGITAL CORP (WDC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WDC - US9581021055 - Common Stock
157.32 EUR
+3.94 (+2.57%)
WDC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC has an excellent profitability rating, but there are some minor concerns on its financial health. WDC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WDC was profitable.
In the past year WDC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WDC reported negative net income in multiple years.
In multiple years WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of WDC (17.50%) is better than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 41.08%, WDC belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
WDC has a Return On Invested Capital of 21.54%. This is amongst the best in the industry. WDC outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROIC | 21.54% |
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
The Profit Margin of WDC (20.94%) is better than 93.33% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
WDC has a Operating Margin of 23.42%. This is amongst the best in the industry. WDC outperforms 93.33% of its industry peers.
In the last couple of years the Operating Margin of WDC has grown nicely.
WDC has a Gross Margin (39.34%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WDC has grown nicely.
| 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), WDC is creating value.
The number of shares outstanding for WDC has been increased compared to 1 year ago.
The number of shares outstanding for WDC has been increased compared to 5 years ago.
WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.36 indicates that WDC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.36, WDC belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of WDC is 2.33, which is a good value as it means it would take WDC, 2.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WDC (2.33) is better than 76.67% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, WDC perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.36 |
ROIC/WACC2.57
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.21 indicates that WDC should not have too much problems paying its short term obligations.
WDC's Current ratio of 1.21 is on the low side compared to the rest of the industry. WDC is outperformed by 60.00% of its industry peers.
A Quick Ratio of 0.94 indicates that WDC may have some problems paying its short term obligations.
WDC's Quick ratio of 0.94 is in line compared to the rest of the industry. WDC outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.91%, which is quite impressive.
WDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
The Revenue for WDC has decreased by -29.80% in the past year. This is quite bad
The Revenue for WDC 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
WDC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.20% yearly.
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 28.14 indicates a quite expensive valuation of WDC.
The rest of the industry has a similar Price/Earnings ratio as WDC.
Compared to an average S&P500 Price/Earnings ratio of 26.60, WDC is valued at the same level.
A Price/Forward Earnings ratio of 19.06 indicates a rather expensive valuation of WDC.
WDC's Price/Forward Earnings is on the same level as the industry average.
WDC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
WDC's Enterprise Value to EBITDA is on the same level as the industry average.
WDC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.43 | ||
| EV/EBITDA | 19.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WDC has a very decent profitability rating, which may justify a higher PE ratio.
WDC's earnings are expected to grow with 19.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)1.69
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, WDC is not a good candidate for dividend investing.
WDC's Dividend Yield is comparable with the industry average which is at 1.04.
With a Dividend Yield of 0.29, WDC pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
The dividend of WDC decreases each year by -42.40%.
Dividend Growth(5Y)-42.4%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
3.30% of the earnings are spent on dividend by WDC. This is a low number and sustainable payout ratio.
DP3.3%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
FRA:WDC (1/2/2026, 7:00:00 PM)
157.32
+3.94 (+2.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap53.79B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target160.48 (2.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.11
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)11.8%
Revenue beat(12)8
Avg Revenue beat(12)8.96%
Revenue beat(16)10
Avg Revenue beat(16)6.76%
PT rev (1m)2.4%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.37%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 19.06 | ||
| P/S | 5.27 | ||
| P/FCF | 31.43 | ||
| P/OCF | 26.33 | ||
| P/B | 10.33 | ||
| P/tB | 35.15 | ||
| EV/EBITDA | 19.88 |
EPS(TTM)5.59
EY3.55%
EPS(NY)8.26
Fwd EY5.25%
FCF(TTM)5.01
FCFY3.18%
OCF(TTM)5.97
OCFY3.8%
SpS29.88
BVpS15.23
TBVpS4.48
PEG (NY)1.55
PEG (5Y)1.69
Graham Number43.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 21.54% | ||
| ROICexc | 32.06% | ||
| ROICexgc | 106.74% | ||
| 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 | 6.36 |
F-Score7
WACC8.37%
ROIC/WACC2.57
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 / WDC.DE FAQ
Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to WDC.DE.
What is the valuation status of WESTERN DIGITAL CORP (WDC.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to WESTERN DIGITAL CORP (WDC.DE). This can be considered as Overvalued.
Can you provide the profitability details for WESTERN DIGITAL CORP?
WESTERN DIGITAL CORP (WDC.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for WDC stock?
The financial health rating of WESTERN DIGITAL CORP (WDC.DE) is 5 / 10.
How sustainable is the dividend of WESTERN DIGITAL CORP (WDC.DE) stock?
The dividend rating of WESTERN DIGITAL CORP (WDC.DE) is 2 / 10 and the dividend payout ratio is 3.3%.