Logo image of WDC

WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

NASDAQ:WDC - Nasdaq - US9581021055 - Common Stock - Currency: USD

74.22  +0.44 (+0.6%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WDC. 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 valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

WDC had positive earnings in the past year.
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 0 1B -1B 2B 3B 4B

1.2 Ratios

The Return On Assets of WDC (9.76%) is better than 84.38% of its industry peers.
The Return On Equity of WDC (29.56%) is better than 90.63% of its industry peers.
WDC's Return On Invested Capital of 19.21% is amongst the best of the industry. WDC outperforms 84.38% of its industry peers.
Industry RankSector 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
WDC Yearly ROA, ROE, ROICWDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

Looking at the Profit Margin, with a value of 11.07%, WDC belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
Looking at the Operating Margin, with a value of 18.84%, WDC belongs to the top 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 has a better Gross Margin (36.93%) than 71.88% of its industry peers.
WDC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 0 10 -10 20 30

5

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.
There is no outstanding debt for WDC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B

2.2 Solvency

An Altman-Z score of 3.10 indicates that WDC is not in any danger for bankruptcy at the moment.
WDC has a better Altman-Z score (3.10) than 75.00% of its industry peers.
The Debt to FCF ratio of WDC is 8.59, which is on the high side as it means it would take WDC, 8.59 years of fcf income to pay off 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 Debt to Equity ratio of 0.91. This is comparable to the rest of the industry: WDC outperforms 40.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 8.59
Altman-Z 3.1
ROIC/WACC2.44
WACC7.86%
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 0 5B 10B

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.
The Current ratio of WDC (1.56) is comparable to the rest of the industry.
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.
The Quick ratio of WDC (1.31) is better than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.31
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 2B 4B 6B 8B 10B

3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1828.95% over the past year.
WDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
EPS 1Y (TTM)1828.95%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%15.28%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-30.79%

3.2 Future

WDC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.37% yearly.
WDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y-15.89%
EPS Next 2Y-6.41%
EPS Next 3Y0.79%
EPS Next 5Y-0.37%
Revenue Next Year9.32%
Revenue Next 2Y5.4%
Revenue Next 3Y4.09%
Revenue Next 5Y3.65%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 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 0 5 10

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.30, 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 is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.43, the valuation of WDC can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as WDC.
When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (36.36), we can say WDC is valued rather cheaply.
Industry RankSector Rank
PE 11.3
Fwd PE 13.43
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

78.13% of the companies in the same industry are more expensive than WDC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than 65.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.32
EV/EBITDA 9.18
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The decent profitability rating of WDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-6.41%
EPS Next 3Y0.79%

3

5. Dividend

5.1 Amount

WDC has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 1.98, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WDC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

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
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

DP0%
EPS Next 2Y-6.41%
EPS Next 3Y0.79%
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 0 1B -1B 2B 3B

WESTERN DIGITAL CORP

NASDAQ:WDC (8/7/2025, 1:02:05 PM)

74.22

+0.44 (+0.6%)

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 Owners104.34%
Inst Owner Change-0.09%
Ins Owners0.46%
Ins Owner Change2.79%
Market Cap25.89B
Analysts80
Price Target84.03 (13.22%)
Short Float %9.54%
Short Ratio5.33
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-04 2025-09-04 (0.1)
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)3.75%
PT rev (3m)-4.41%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)28.42%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-9.93%
Valuation
Industry RankSector Rank
PE 11.3
Fwd PE 13.43
P/S 1.79
P/FCF 30.32
P/OCF 19.75
P/B 4.79
P/tB 25.61
EV/EBITDA 9.18
EPS(TTM)6.57
EY8.85%
EPS(NY)5.53
Fwd EY7.45%
FCF(TTM)2.45
FCFY3.3%
OCF(TTM)3.76
OCFY5.06%
SpS41.38
BVpS15.5
TBVpS2.9
PEG (NY)N/A
PEG (5Y)0.68
Profitability
Industry RankSector 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 RankSector 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 3.1
F-Score6
WACC7.86%
ROIC/WACC2.44
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)1828.95%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%15.28%
EPS Next Y-15.89%
EPS Next 2Y-6.41%
EPS Next 3Y0.79%
EPS Next 5Y-0.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-30.79%
Revenue Next Year9.32%
Revenue Next 2Y5.4%
Revenue Next 3Y4.09%
Revenue Next 5Y3.65%
EBIT growth 1Y278.83%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year562.63%
EBIT Next 3Y109.75%
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