198.56 USD
+10.88 (+5.8%)
WDC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WDC was profitable.
WDC had a positive operating cash flow in the past year.
In multiple years WDC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: WDC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of WDC (17.50%) is better than 91.43% 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 94.29% of the companies in the same industry.
WDC has a Return On Invested Capital of 24.17%. This is amongst the best in the industry. WDC outperforms 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROIC | 24.17% |
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 97.14% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
WDC has a better Operating Margin (23.42%) than 97.14% of its industry peers.
In the last couple of years the Operating Margin of WDC has grown nicely.
The Gross Margin of WDC (39.34%) is better than 77.14% of 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
WDC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, WDC has more shares outstanding
The number of shares outstanding for WDC has been increased compared to 5 years ago.
Compared to 1 year ago, WDC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.43 indicates that WDC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.43, WDC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
WDC has a debt to FCF ratio of 2.33. This is a good value and a sign of high solvency as WDC would need 2.33 years to pay back of all of its debts.
WDC has a Debt to FCF ratio of 2.33. This is in the better half of the industry: WDC outperforms 77.14% of its industry peers.
WDC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WDC (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.43 |
ROIC/WACC2.85
WACC8.48%
2.3 Liquidity
WDC has a Current Ratio of 1.21. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
WDC has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 0.94 indicates that WDC may have some problems paying its short term obligations.
The Quick ratio of WDC (0.94) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.91% over the past year.
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
The Earnings Per Share is expected to grow by 13.20% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 30.22, WDC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WDC is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
WDC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 20.47 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 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
WDC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WDC is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.76 | ||
| EV/EBITDA | 20.18 |
4.3 Compensation for Growth
WDC's 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.
A more expensive valuation may be justified as WDC's earnings are expected to grow with 19.56% in the coming years.
PEG (NY)1.67
PEG (5Y)1.81
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
WDC has a yearly dividend return of 0.29%, which is pretty low.
Compared to an average industry Dividend Yield of 0.63, WDC pays a bit more dividend than its industry peers.
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%.
WDC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
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%
NASDAQ:WDC (1/9/2026, 3:09:08 PM)
198.56
+10.88 (+5.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change0.57%
Market Cap67.89B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target187.73 (-5.45%)
Short Float %9.22%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
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)0.41%
Revenue beat(12)8
Avg Revenue beat(12)1.36%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)4.52%
PT rev (3m)80.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.93%
EPS NY rev (1m)1.37%
EPS NY rev (3m)16.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.5%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)5.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 20.47 | ||
| P/S | 5.66 | ||
| P/FCF | 33.76 | ||
| P/OCF | 28.29 | ||
| P/B | 11.1 | ||
| P/tB | 37.76 | ||
| EV/EBITDA | 20.18 |
EPS(TTM)6.57
EY3.31%
EPS(NY)9.7
Fwd EY4.89%
FCF(TTM)5.88
FCFY2.96%
OCF(TTM)7.02
OCFY3.54%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)1.67
PEG (5Y)1.81
Graham Number51.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 24.17% | ||
| ROICexc | 35.97% | ||
| ROICexgc | 119.78% | ||
| 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 | 6.43 |
F-Score7
WACC8.48%
ROIC/WACC2.85
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 FAQ
Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to WDC.
What is the valuation status of WESTERN DIGITAL CORP (WDC) stock?
ChartMill assigns a valuation rating of 4 / 10 to WESTERN DIGITAL CORP (WDC). This can be considered as Fairly Valued.
Can you provide the profitability details for WESTERN DIGITAL CORP?
WESTERN DIGITAL CORP (WDC) 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) is 5 / 10.
How sustainable is the dividend of WESTERN DIGITAL CORP (WDC) stock?
The dividend rating of WESTERN DIGITAL CORP (WDC) is 3 / 10 and the dividend payout ratio is 3.3%.