168.89 USD
+7.89 (+4.9%)
169.44 USD
+0.55 (+0.33%)
We assign a fundamental rating of 5 out of 10 to WDC. WDC was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While WDC belongs to the best of the industry regarding profitability, 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.
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.
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
With an excellent Return On Assets value of 17.50%, WDC belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
With an excellent Return On Equity value of 41.08%, WDC belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
The Return On Invested Capital of WDC (24.17%) is better 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 91.43% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
Looking at the Operating Margin, with a value of 23.42%, WDC belongs to the top 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 better Gross Margin (39.34%) than 74.29% of its industry peers.
WDC's Gross Margin has improved in the last couple of years.
| 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
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.
WDC has more shares outstanding than it did 5 years ago.
WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that WDC is not in any danger for bankruptcy at the moment.
WDC has a Altman-Z score of 5.77. This is amongst the best in the industry. WDC outperforms 82.86% of its industry peers.
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 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.
Looking at the Debt to Equity ratio, with a value of 0.40, WDC is in line with its industry, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 5.77 |
ROIC/WACC2.91
WACC8.31%
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.
The Current ratio of WDC (1.21) is worse than 60.00% of 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 (0.94) which is in line with 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.
Looking at the last year, WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
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 Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y17.32%
EPS Next 5Y13.2%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y15.04%
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 25.71 indicates a quite expensive valuation of WDC.
Compared to the rest of the industry, the Price/Earnings ratio of WDC is on the same level as its industry peers.
WDC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.38 indicates a rather expensive valuation of WDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WDC is on the same level as its industry peers.
WDC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 17.94 |
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.
WDC's earnings are expected to grow with 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)1.54
EPS Next 2Y15.17%
EPS Next 3Y17.32%
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 1.93.
Compared to an average S&P500 Dividend Yield of 2.32, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
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 3Y17.32%
168.89
+7.89 (+4.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change-2.36%
Ins Owners0.49%
Ins Owner Change0.85%
Market Cap57.74B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts79.38
Price Target179.61 (6.35%)
Short Float %9.89%
Short Ratio3.45
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)72.54%
PT rev (3m)104.18%
EPS NQ rev (1m)11.32%
EPS NQ rev (3m)13.92%
EPS NY rev (1m)7.92%
EPS NY rev (3m)11.38%
Revenue NQ rev (1m)3.55%
Revenue NQ rev (3m)4.92%
Revenue NY rev (1m)2.38%
Revenue NY rev (3m)3.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 19.38 | ||
| P/S | 4.81 | ||
| P/FCF | 28.71 | ||
| P/OCF | 24.06 | ||
| P/B | 9.44 | ||
| P/tB | 32.12 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)6.57
EY3.89%
EPS(NY)8.71
Fwd EY5.16%
FCF(TTM)5.88
FCFY3.48%
OCF(TTM)7.02
OCFY4.16%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)2.25
PEG (5Y)1.54
Graham Number51.43
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 | 9.31 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.77 |
F-Score7
WACC8.31%
ROIC/WACC2.91
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 3Y17.32%
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 Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y15.04%
Revenue Next 5Y12.63%
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 25.71 and the Price/Book (PB) ratio is 9.44.
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.