WESTERN DIGITAL CORP (WDC) Fundamental Analysis & Valuation

NASDAQ:WDC • US9581021055

253.69 USD
-5.34 (-2.06%)
Last: Mar 6, 2026, 01:05 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This WDC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

WDC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Technology Hardware, Storage & Peripherals industry. While WDC has a great profitability rating, there are some minor concerns on its financial health. WDC is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

7

1. WDC Profitability Analysis

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

1.2 Ratios

  • WDC has a better Return On Assets (23.89%) than 97.22% of its industry peers.
  • WDC has a better Return On Equity (50.82%) than 91.67% of its industry peers.
  • The Return On Invested Capital of WDC (22.70%) is better than 91.67% of its industry peers.
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROIC 22.7%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 34.75%, WDC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WDC has grown nicely.
  • WDC's Operating Margin of 27.93% is amongst the best of the industry. WDC outperforms 97.22% of its industry peers.
  • In the last couple of years the Operating Margin of WDC has grown nicely.
  • Looking at the Gross Margin, with a value of 42.72%, WDC belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WDC has grown nicely.
Industry RankSector Rank
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. WDC Health Analysis

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
  • 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.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • The Debt to FCF ratio of WDC is 2.02, which is a good value as it means it would take WDC, 2.02 years of fcf income to pay off all of its debts.
  • WDC's Debt to FCF ratio of 2.02 is amongst the best of the industry. WDC outperforms 83.33% of its industry peers.
  • WDC has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
  • WDC has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: WDC outperforms 58.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z N/A
ROIC/WACC2.68
WACC8.47%
WDC Yearly LT Debt VS Equity VS FCFWDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • WDC has a Current Ratio of 1.45. 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 (1.45) is comparable to the rest of the industry.
  • WDC has a Quick Ratio of 1.19. 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 Quick ratio (1.19) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.45
Quick Ratio 1.19
WDC Yearly Current Assets VS Current LiabilitesWDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. WDC Growth Analysis

3.1 Past

  • WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.31%, 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.
  • The Revenue has grown by 28.14% in the past year. This is a very strong growth!
  • 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)23.31%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%20.34%
Revenue 1Y (TTM)28.14%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-29.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 24.90% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, WDC will show a quite strong growth in Revenue. The Revenue will grow by 16.23% on average per year.
EPS Next Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
EPS Next 5Y24.9%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
Revenue Next 5Y16.23%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WDC Yearly Revenue VS EstimatesWDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

More info and screens

Find the best growth stocksShow best growing peers

4

4. WDC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 36.61 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's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.69.
  • Based on the Price/Forward Earnings ratio of 19.95, the valuation of WDC can be described as rather expensive.
  • 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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.61
Fwd PE 19.95
WDC Price Earnings VS Forward Price EarningsWDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than 63.89% 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 63.89% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 37.3
EV/EBITDA 25.6
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • WDC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of WDC may justify a higher PE ratio.
  • A more expensive valuation may be justified as WDC's earnings are expected to grow with 36.37% in the coming years.
PEG (NY)1.1
PEG (5Y)2.2
EPS Next 2Y39.12%
EPS Next 3Y36.37%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. WDC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.18%, WDC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.65, WDC pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.18, WDC pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.18%

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 2016 2017 2018 2019 2020 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 3.51% of the earnings are spent on dividend by WDC. This is a low number and sustainable payout ratio.
DP3.51%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
WDC Yearly Income VS Free CF VS DividendWDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 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

More info and screens

Find the best dividend stocksShow peers with best dividend

WDC Fundamentals: All Metrics, Ratios and Statistics

WESTERN DIGITAL CORP

NASDAQ:WDC (3/6/2026, 1:05:09 PM)

253.69

-5.34 (-2.06%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners104.48%
Inst Owner Change-1.33%
Ins Owners0.3%
Ins Owner Change-2.46%
Market Cap86.01B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts80
Price Target322.33 (27.06%)
Short Float %9.37%
Short Ratio3.13
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.77%
Min EPS beat(2)9.95%
Max EPS beat(2)11.58%
EPS beat(4)4
Avg EPS beat(4)13.04%
Min EPS beat(4)9.95%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)34.45%
EPS beat(12)11
Avg EPS beat(12)28.34%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)2.17%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)1.24%
PT rev (1m)68.76%
PT rev (3m)79.46%
EPS NQ rev (1m)21.77%
EPS NQ rev (3m)24%
EPS NY rev (1m)11.81%
EPS NY rev (3m)19.62%
Revenue NQ rev (1m)10.07%
Revenue NQ rev (3m)10.63%
Revenue NY rev (1m)4.92%
Revenue NY rev (3m)8.61%
Valuation
Industry RankSector Rank
PE 36.61
Fwd PE 19.95
P/S 8.01
P/FCF 37.3
P/OCF 32.2
P/B 11.72
P/tB 28.47
EV/EBITDA 25.6
EPS(TTM)6.93
EY2.73%
EPS(NY)12.72
Fwd EY5.01%
FCF(TTM)6.8
FCFY2.68%
OCF(TTM)7.88
OCFY3.11%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.1
PEG (5Y)2.2
Graham Number58.1
Profitability
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROCE 28.73%
ROIC 22.7%
ROICexc 37.05%
ROICexgc 114.25%
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
FCFM 21.48%
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 3Y58.03%
ROICexgc growth 5Y82.85%
ROICexc growth 3Y35.09%
ROICexc growth 5Y70.9%
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 Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Debt/EBITDA 0.72
Cap/Depr 97.07%
Cap/Sales 3.4%
Interest Coverage 250
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z N/A
F-Score7
WACC8.47%
ROIC/WACC2.68
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)23.31%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%20.34%
EPS Next Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
EPS Next 5Y24.9%
Revenue 1Y (TTM)28.14%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-29.59%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
Revenue Next 5Y16.23%
EBIT growth 1Y142.56%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year107.17%
EBIT Next 3Y56.59%
EBIT Next 5Y35.61%
FCF growth 1Y236.94%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y328.88%
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 6 / 10 to WDC.


What is the valuation status of WESTERN DIGITAL CORP (WDC) stock?

ChartMill assigns a valuation rating of 5 / 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.


Can you provide the financial health for WDC stock?

The financial health rating of WESTERN DIGITAL CORP (WDC) is 4 / 10.


How sustainable is the dividend of WESTERN DIGITAL CORP (WDC) stock?

The dividend rating of WESTERN DIGITAL CORP (WDC) is 3 / 10 and the dividend payout ratio is 3.51%.