WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis
NASDAQ:WDC - Nasdaq - US9581021055 - Common Stock - Currency: USD
Taking everything into account, WDC scores 5 out of 10 in our fundamental rating. WDC was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC has only an average score on both its financial health and profitability. WDC has a bad growth rate and is valued cheaply.
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.
The reported net income has been mixed in the past 5 years: WDC reported negative net income in multiple 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
Looking at the Return On Assets, with a value of 9.76%, WDC belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
WDC has a better Return On Equity (29.56%) than 90.63% of its industry peers.
The Return On Invested Capital of WDC (19.21%) is better than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROIC | 19.21% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of WDC (11.07%) is better than 84.38% of its industry peers.
With an excellent Operating Margin value of 18.84%, WDC belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Operating Margin of WDC has declined.
WDC's Gross Margin of 36.93% is fine compared to the rest of the industry. WDC outperforms 71.88% of its industry peers.
WDC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.84% | ||
| PM (TTM) | 11.07% | ||
| GM | 36.93% |
OM growth 3Y-39.35%
OM growth 5Y-7.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.72%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
The number of shares outstanding for WDC has been increased compared to 1 year ago.
The number of shares outstanding for WDC has been increased compared to 5 years ago.
The debt/assets ratio for WDC is higher compared to a year ago.
2.2 Solvency
WDC has an Altman-Z score of 2.97. This is not the best score and indicates that WDC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WDC (2.97) is better than 75.00% of its industry peers.
WDC has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as WDC would need 8.59 years to pay back of all of its debts.
WDC has a Debt to FCF ratio (8.59) which is comparable to the rest of the industry.
WDC has a Debt/Equity ratio of 0.91. This is a neutral value indicating WDC is somewhat dependend on debt financing.
WDC has a worse Debt to Equity ratio (0.91) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 2.97 |
ROIC/WACC2.42
WACC7.94%
2.3 Liquidity
WDC has a Current Ratio of 1.56. 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 1.56. This is comparable to the rest of the industry: WDC outperforms 53.13% of its industry peers.
WDC has a Quick Ratio of 1.31. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.31, WDC is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 267.11%, which is quite impressive.
WDC shows a decrease in Revenue. In the last year, the revenue decreased by -1.52%.
WDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.73% yearly.
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
3.2 Future
The Earnings Per Share is expected to grow by 80.27% on average over the next years. This is a very strong growth
WDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.52% yearly.
EPS Next Y1384.78%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
EPS Next 5Y80.27%
Revenue Next Year-27.71%
Revenue Next 2Y-11.56%
Revenue Next 3Y-7.79%
Revenue Next 5Y-3.52%
3.3 Evolution
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
Based on the Price/Earnings ratio of 10.63, the valuation of WDC can be described as reasonable.
90.63% of the companies in the same industry are more expensive than WDC, based on the Price/Earnings ratio.
WDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.51.
A Price/Forward Earnings ratio of 12.21 indicates a correct valuation of WDC.
Based on the Price/Forward Earnings ratio, WDC is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, WDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
78.13% of the companies in the same industry are more expensive than WDC, based on the Enterprise Value to EBITDA ratio.
65.63% of the companies in the same industry are more expensive than WDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WDC has a very decent profitability rating, which may justify a higher PE ratio.
WDC's earnings are expected to grow with 157.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y306.71%
EPS Next 3Y157.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, WDC is not a good candidate for dividend investing.
WDC's Dividend Yield is a higher than the industry average which is at 1.95.
Compared to an average S&P500 Dividend Yield of 2.35, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
WDC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
NASDAQ:WDC (7/15/2025, 12:54:09 PM)
67.47
+0.54 (+0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.34%
Inst Owner Change-0.03%
Ins Owners0.46%
Ins Owner Change2.8%
Market Cap23.54B
Analysts80.67
Price Target61.05 (-9.52%)
Short Float %9.71%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.06%
Min EPS beat(2)-1.74%
Max EPS beat(2)19.85%
EPS beat(4)3
Avg EPS beat(4)10.66%
Min EPS beat(4)-1.74%
Max EPS beat(4)21.78%
EPS beat(8)7
Avg EPS beat(8)36.77%
EPS beat(12)9
Avg EPS beat(12)1.98%
EPS beat(16)13
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.37%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)7
Avg Revenue beat(12)0.89%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)1.96%
PT rev (3m)-21.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.28%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-13.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 12.21 | ||
| P/S | 1.63 | ||
| P/FCF | 27.56 | ||
| P/OCF | 17.95 | ||
| P/B | 4.35 | ||
| P/tB | 23.28 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)6.35
EY9.41%
EPS(NY)5.53
Fwd EY8.19%
FCF(TTM)2.45
FCFY3.63%
OCF(TTM)3.76
OCFY5.57%
SpS41.38
BVpS15.5
TBVpS2.9
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROCE | 24.32% | ||
| ROIC | 19.21% | ||
| ROICexc | 27.87% | ||
| ROICexgc | 64.84% | ||
| OM | 18.84% | ||
| PM (TTM) | 11.07% | ||
| GM | 36.93% | ||
| FCFM | 5.91% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
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 3Y-40.84%
ROICexcg growth 5Y-8.79%
ROICexc growth 3Y-42.6%
ROICexc growth 5Y-9.08%
OM growth 3Y-39.35%
OM growth 5Y-7.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.72%
GM growth 5Y-0.75%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 90.85% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 7.35 | ||
| Cash Conversion | 40.68% | ||
| Profit Quality | 53.44% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 2.97 |
F-Score6
WACC7.94%
ROIC/WACC2.42
Cap/Depr(3y)101.89%
Cap/Depr(5y)88.31%
Cap/Sales(3y)5.46%
Cap/Sales(5y)5.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
EPS Next Y1384.78%
EPS Next 2Y306.71%
EPS Next 3Y157.85%
EPS Next 5Y80.27%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
Revenue Next Year-27.71%
Revenue Next 2Y-11.56%
Revenue Next 3Y-7.79%
Revenue Next 5Y-3.52%
EBIT growth 1Y278.83%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year568.48%
EBIT Next 3Y99.25%
EBIT Next 5Y48.54%
FCF growth 1Y183.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3013.33%
OCF growth 3YN/A
OCF growth 5YN/A