WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis
USA - NASDAQ:WDC - US9581021055 - Common Stock
111.685 USD
+5.06 (+4.74%)
Taking everything into account, WDC scores 5 out of 10 in our fundamental rating. WDC was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC scores excellent on profitability, but there are some minor concerns on its financial health. WDC has a decent growth rate and is not valued too expensively.
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.
In multiple years WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of WDC (13.16%) is better than 90.91% of its industry peers.
Looking at the Return On Equity, with a value of 33.25%, WDC belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.82%, WDC belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROIC | 25.82% |
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
WDC's Profit Margin of 13.87% is amongst the best of the industry. WDC outperforms 87.88% of its industry peers.
WDC's Profit Margin has improved in the last couple of years.
The Operating Margin of WDC (21.13%) is better than 87.88% of its industry peers.
WDC's Operating Margin has improved in the last couple of years.
WDC has a better Gross Margin (38.00%) than 72.73% of its industry peers.
WDC'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 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDC is creating value.
The number of shares outstanding for WDC has been increased compared to 1 year ago.
Compared to 5 years ago, WDC has more shares outstanding
The debt/assets ratio for WDC is higher compared to a year ago.
2.2 Solvency
WDC has an Altman-Z score of 4.35. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.35, WDC is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
WDC has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as WDC would need 3.68 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.68, WDC is doing good in the industry, outperforming 69.70% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that WDC is not too dependend on debt financing.
WDC 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 | 3.68 | ||
| Altman-Z | 4.35 |
ROIC/WACC3.15
WACC8.21%
2.3 Liquidity
WDC has a Current Ratio of 1.08. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WDC (1.08) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.84 indicates that WDC may have some problems paying its short term obligations.
WDC has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1828.95%, which is quite impressive.
Measured over the past years, WDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
WDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.70%.
The Revenue for WDC 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
WDC 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, WDC will show a small growth in Revenue. The Revenue will grow by 7.74% on average per year.
EPS Next Y0.03%
EPS Next 2Y3.9%
EPS Next 3Y5.08%
EPS Next 5Y10.07%
Revenue Next Year17.43%
Revenue Next 2Y11.12%
Revenue Next 3Y7.79%
Revenue Next 5Y7.74%
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
WDC is valuated correctly with a Price/Earnings ratio of 17.00.
Compared to the rest of the industry, the Price/Earnings ratio of WDC indicates a rather cheap valuation: WDC is cheaper than 87.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. WDC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.99 indicates a correct valuation of WDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 63.64% of the companies listed in the same industry.
WDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.29 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WDC may justify a higher PE ratio.
PEG (NY)617.93
PEG (5Y)1.02
EPS Next 2Y3.9%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, WDC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.13, WDC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.40, WDC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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
2.39% of the earnings are spent on dividend by WDC. This is a low number and sustainable payout ratio.
DP2.39%
EPS Next 2Y3.9%
EPS Next 3Y5.08%
NASDAQ:WDC (9/22/2025, 2:49:52 PM)
111.685
+5.06 (+4.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.54%
Inst Owner Change1.5%
Ins Owners0.46%
Ins Owner Change4.28%
Market Cap38.75B
Analysts80
Price Target92.2 (-17.45%)
Short Float %10.2%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP2.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)9.73%
PT rev (3m)51.03%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)16.99%
EPS NY rev (1m)0%
EPS NY rev (3m)19.5%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)8.25%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)9.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 16.99 | ||
| P/S | 2.92 | ||
| P/FCF | 30.29 | ||
| P/OCF | 22.91 | ||
| P/B | 6.99 | ||
| P/tB | 33.72 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)6.57
EY5.88%
EPS(NY)6.57
Fwd EY5.88%
FCF(TTM)3.69
FCFY3.3%
OCF(TTM)4.87
OCFY4.36%
SpS38.28
BVpS15.97
TBVpS3.31
PEG (NY)617.93
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.16% | ||
| ROE | 33.25% | ||
| ROCE | 32.69% | ||
| ROIC | 25.82% | ||
| ROICexc | 34.26% | ||
| ROICexgc | 106.63% | ||
| OM | 21.13% | ||
| PM (TTM) | 13.87% | ||
| GM | 38% | ||
| FCFM | 9.63% |
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
ROICexcg growth 3Y48.5%
ROICexcg growth 5Y76.15%
ROICexc growth 3Y32.58%
ROICexc growth 5Y68.99%
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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 91.35% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 51.92% | ||
| Profit Quality | 69.44% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 4.35 |
F-Score7
WACC8.21%
ROIC/WACC3.15
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)1828.95%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%15.28%
EPS Next Y0.03%
EPS Next 2Y3.9%
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 Year17.43%
Revenue Next 2Y11.12%
Revenue Next 3Y7.79%
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 1Y263.76%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y675.17%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%