Logo image of WDC

WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

NASDAQ:WDC - US9581021055 - Common Stock

80.34 USD
-1.7 (-2.07%)
Last: 8/29/2025, 8:00:02 PM
80.35 USD
+0.01 (+0.01%)
After Hours: 8/29/2025, 8:00:02 PM
Fundamental Rating

5

Overall WDC gets a fundamental rating of 5 out of 10. We evaluated WDC against 32 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year WDC was profitable.
WDC had a positive operating cash flow in the past year.
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.
WDC Yearly Net Income VS EBIT VS OCF VS FCFWDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

1.2 Ratios

WDC's Return On Assets of 13.16% is amongst the best of the industry. WDC outperforms 90.63% of its industry peers.
WDC has a Return On Equity of 33.25%. This is amongst the best in the industry. WDC outperforms 93.75% of its industry peers.
WDC has a better Return On Invested Capital (25.82%) than 90.63% of its industry peers.
Industry RankSector 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
WDC Yearly ROA, ROE, ROICWDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

WDC's Profit Margin of 13.87% is amongst the best of the industry. WDC outperforms 87.50% of its industry peers.
WDC's Profit Margin has improved in the last couple of years.
WDC has a better Operating Margin (21.13%) than 87.50% of its industry peers.
In the last couple of years the Operating Margin of WDC has grown nicely.
WDC has a Gross Margin of 38.00%. This is in the better half of the industry: WDC outperforms 71.88% of its industry peers.
WDC's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
WDC Yearly Profit, Operating, Gross MarginsWDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
Compared to 1 year ago, WDC has more shares outstanding
Compared to 5 years ago, WDC has more shares outstanding
The debt/assets ratio for WDC is higher compared to a year ago.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
WDC Yearly Total Debt VS Total AssetsWDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

WDC has an Altman-Z score of 3.74. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.74, WDC belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Debt to FCF ratio of WDC is 3.68, which is a good value as it means it would take WDC, 3.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, WDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
WDC has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
WDC has a Debt to Equity ratio (0.45) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 3.68
Altman-Z 3.74
ROIC/WACC3.17
WACC8.14%
WDC Yearly LT Debt VS Equity VS FCFWDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

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.
WDC has a Current ratio of 1.08. This is in the lower half of the industry: WDC underperforms 68.75% of its industry peers.
A Quick Ratio of 0.84 indicates that WDC may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, WDC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.84
WDC Yearly Current Assets VS Current LiabilitesWDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

4

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.
Looking at the last year, WDC shows a very negative growth in Revenue. The Revenue has decreased by -15.70% 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)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.
WDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.74% yearly.
EPS Next Y0.03%
EPS Next 2Y3.9%
EPS Next 3Y5.54%
EPS Next 5Y10.07%
Revenue Next Year17.52%
Revenue Next 2Y10.77%
Revenue Next 3Y7.82%
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.
WDC Yearly Revenue VS EstimatesWDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
WDC Yearly EPS VS EstimatesWDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.23, the valuation of WDC can be described as correct.
90.63% of the companies in the same industry are more expensive than WDC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (27.08), we can say WDC is valued rather cheaply.
The Price/Forward Earnings ratio is 12.22, which 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 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (22.72), we can say WDC is valued slightly cheaper.
Industry RankSector Rank
PE 12.23
Fwd PE 12.22
WDC Price Earnings VS Forward Price EarningsWDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDC indicates a rather cheap valuation: WDC is cheaper than 81.25% of the companies listed in the same industry.
71.88% of the companies in the same industry are more expensive than WDC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.79
EV/EBITDA 9.54
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
PEG (NY)444.51
PEG (5Y)0.73
EPS Next 2Y3.9%
EPS Next 3Y5.54%

3

5. Dividend

5.1 Amount

WDC has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 1.91, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, WDC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.54%

5.2 History

The dividend of WDC decreases each year by -42.40%.
WDC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
WDC Yearly Dividends per shareWDC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2025 0.5 1 1.5

5.3 Sustainability

WDC pays out 2.39% of its income as dividend. This is a sustainable payout ratio.
DP2.39%
EPS Next 2Y3.9%
EPS Next 3Y5.54%
WDC Yearly Income VS Free CF VS DividendWDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B
WDC Dividend Payout.WDC Dividend Payout, showing the Payout Ratio.WDC Dividend Payout.PayoutRetained Earnings

WESTERN DIGITAL CORP

NASDAQ:WDC (8/29/2025, 8:00:02 PM)

After market: 80.35 +0.01 (+0.01%)

80.34

-1.7 (-2.07%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)07-30 2025-07-30/amc
Earnings (Next)10-22 2025-10-22/bmo
Inst Owners104.54%
Inst Owner Change1.5%
Ins Owners0.46%
Ins Owner Change8.84%
Market Cap27.87B
Analysts80
Price Target87.97 (9.5%)
Short Float %9.5%
Short Ratio4.84
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP2.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-04 2025-09-04 (0.1)
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)38.88%
PT rev (3m)41.81%
EPS NQ rev (1m)14.58%
EPS NQ rev (3m)19.55%
EPS NY rev (1m)18.93%
EPS NY rev (3m)19.7%
Revenue NQ rev (1m)7.19%
Revenue NQ rev (3m)8.55%
Revenue NY rev (1m)8.83%
Revenue NY rev (3m)9.15%
Valuation
Industry RankSector Rank
PE 12.23
Fwd PE 12.22
P/S 2.1
P/FCF 21.79
P/OCF 16.48
P/B 5.03
P/tB 24.26
EV/EBITDA 9.54
EPS(TTM)6.57
EY8.18%
EPS(NY)6.57
Fwd EY8.18%
FCF(TTM)3.69
FCFY4.59%
OCF(TTM)4.87
OCFY6.07%
SpS38.28
BVpS15.97
TBVpS3.31
PEG (NY)444.51
PEG (5Y)0.73
Profitability
Industry RankSector 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 RankSector 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 3.74
F-Score7
WACC8.14%
ROIC/WACC3.17
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 3Y5.54%
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 Year17.52%
Revenue Next 2Y10.77%
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 1Y263.76%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y675.17%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%