WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis
USA - NASDAQ:WDC - US9581021055 - Common Stock
162.955 USD
-0.64 (-0.39%)
164.88 USD
+1.92 (+1.18%)
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 scores excellent on profitability, but there are concerns on its financial health. WDC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WDC had positive earnings in the past year.
In the past year WDC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 17.50%, WDC belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
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 better Return On Invested Capital (24.17%) than 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
WDC has a better Profit Margin (20.94%) than 94.29% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
With an excellent Operating Margin value of 23.42%, WDC belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Operating Margin of WDC has grown nicely.
WDC has a Gross Margin of 39.34%. This is in the better half of the industry: WDC outperforms 74.29% 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
Compared to 5 years ago, WDC has more shares outstanding
Compared to 1 year ago, WDC has a worse debt to assets ratio.
2.2 Solvency
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.
WDC's Debt to FCF ratio of 2.33 is fine compared to the rest of the industry. WDC outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
WDC has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | N/A |
ROIC/WACC2.89
WACC8.36%
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.
WDC has a Quick Ratio of 1.21. This is a bad value and indicates that WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
WDC has a Quick ratio of 0.94. This is comparable to the rest of the industry: WDC outperforms 60.00% of its industry peers.
| 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.
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.
Looking at the last year, WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
WDC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.67% yearly.
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 11.50% on average over the next years. This is quite good.
WDC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.66% yearly.
EPS Next Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y16.78%
EPS Next 5Y11.5%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y14.66%
Revenue Next 5Y11.66%
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.
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
A Price/Earnings ratio of 24.80 indicates a rather expensive valuation of WDC.
Compared to the rest of the industry, the Price/Earnings ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 65.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (26.06), we can say WDC is valued inline with the index average.
WDC is valuated rather expensively with a Price/Forward Earnings ratio of 18.70.
WDC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WDC is cheaper than 62.86% of the companies in the same industry.
WDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
WDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDC is cheaper than 68.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.78 | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WDC does not grow enough to justify the current Price/Earnings ratio.
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 16.78% in the coming years.
PEG (NY)2.17
PEG (5Y)1.49
EPS Next 2Y15.17%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, WDC is not a good candidate for dividend investing.
WDC's Dividend Yield is a higher than the industry average which is at 1.87.
With a Dividend Yield of 0.33, WDC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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 2Y15.17%
EPS Next 3Y16.78%
162.955
-0.64 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change2.12%
Ins Owners0.49%
Ins Owner Change3.76%
Market Cap55.86B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts79.38
Price Target129.04 (-20.81%)
Short Float %10.03%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)23.96%
PT rev (3m)53.57%
EPS NQ rev (1m)12.75%
EPS NQ rev (3m)14.15%
EPS NY rev (1m)10.23%
EPS NY rev (3m)32.46%
Revenue NQ rev (1m)4.36%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)3.17%
Revenue NY rev (3m)11.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 18.7 | ||
| P/S | 4.65 | ||
| P/FCF | 27.78 | ||
| P/OCF | 23.28 | ||
| P/B | 9.13 | ||
| P/tB | 31.07 | ||
| EV/EBITDA | 18.19 |
EPS(TTM)6.57
EY4.03%
EPS(NY)8.71
Fwd EY5.35%
FCF(TTM)5.87
FCFY3.6%
OCF(TTM)7
OCFY4.3%
SpS35.01
BVpS17.84
TBVpS5.25
PEG (NY)2.17
PEG (5Y)1.49
Graham Number51.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 24.17% | ||
| ROICexc | 31.11% | ||
| ROICexgc | 78.78% | ||
| 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 3Y48.5%
ROICexgc 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 Turnover0.84
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 | 250 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score7
WACC8.36%
ROIC/WACC2.89
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 Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y16.78%
EPS Next 5Y11.5%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y14.66%
Revenue Next 5Y11.66%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year55.13%
EBIT Next 3Y27.84%
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.
Can you provide the valuation status for WESTERN DIGITAL CORP?
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.
What is the valuation of WESTERN DIGITAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WESTERN DIGITAL CORP (WDC) is 24.8 and the Price/Book (PB) ratio is 9.13.
Can you provide the expected EPS growth for WDC stock?
The Earnings per Share (EPS) of WESTERN DIGITAL CORP (WDC) is expected to grow by 11.41% in the next year.