WESTERN DIGITAL CORP (WDC) Fundamental Analysis & Valuation

NASDAQ:WDC • US9581021055

Current stock price

275.34 USD
+1.99 (+0.73%)
At close:
273.4 USD
-1.94 (-0.7%)
After Hours:

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

7

1. WDC Profitability Analysis

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.
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

  • Looking at the Return On Assets, with a value of 23.89%, WDC belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
  • WDC has a Return On Equity of 50.82%. This is amongst the best in the industry. WDC outperforms 91.89% of its industry peers.
  • WDC has a better Return On Invested Capital (22.70%) than 91.89% 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.
  • With an excellent Operating Margin value of 27.93%, WDC belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
  • 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 81.08% 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

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6

2. WDC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDC is creating value.
  • Compared to 1 year ago, WDC has more shares outstanding
  • WDC has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, WDC has a worse debt to assets ratio.
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

  • WDC has an Altman-Z score of 8.61. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of WDC (8.61) is better than 89.19% of its industry peers.
  • WDC has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as WDC would need 2.02 years to pay back of all of its debts.
  • The Debt to FCF ratio of WDC (2.02) is better than 81.08% 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's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. WDC outperforms 59.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z 8.61
ROIC/WACC2.57
WACC8.82%
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

  • A Current Ratio of 1.45 indicates that WDC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.45, WDC is in line with its industry, outperforming 48.65% of the companies in the same 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's Quick ratio of 1.19 is in line compared to the rest of the industry. WDC outperforms 56.76% of its industry peers.
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

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7

3. WDC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.31% over the past year.
  • 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.
  • WDC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.14%.
  • 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

  • WDC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.90% yearly.
  • The Revenue is expected to grow by 16.23% on average over the next years. This is quite good.
EPS Next Y37.27%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
EPS Next 5Y24.9%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
Revenue Next 5Y16.23%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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

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4

4. WDC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.73, the valuation of WDC can be described as expensive.
  • WDC's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (24.89), we can say WDC is valued expensively.
  • Based on the Price/Forward Earnings ratio of 19.91, the valuation of WDC can be described as rather expensive.
  • WDC's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (22.19), we can say WDC is valued inline with the index average.
Industry RankSector Rank
PE 39.73
Fwd PE 19.91
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 the industry average as 64.86% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as WDC.
Industry RankSector Rank
P/FCF 40.48
EV/EBITDA 27.24
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 40.88% in the coming years.
PEG (NY)1.07
PEG (5Y)2.38
EPS Next 2Y45.09%
EPS Next 3Y40.88%

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3

5. WDC Dividend Analysis

5.1 Amount

  • WDC has a yearly dividend return of 0.18%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.61, 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 1.89.
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

  • WDC pays out 3.51% of its income as dividend. This is a sustainable payout ratio.
DP3.51%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
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

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WDC Fundamentals: All Metrics, Ratios and Statistics

WESTERN DIGITAL CORP

NASDAQ:WDC (3/27/2026, 8:00:01 PM)

After market: 273.4 -1.94 (-0.7%)

275.34

+1.99 (+0.73%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners103.44%
Inst Owner Change-1.51%
Ins Owners0.29%
Ins Owner Change-3.62%
Market Cap93.35B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts80
Price Target322.33 (17.07%)
Short Float %8.86%
Short Ratio3.01
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)0%
PT rev (3m)71.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.05%
EPS NY rev (1m)3%
EPS NY rev (3m)16.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.72%
Valuation
Industry RankSector Rank
PE 39.73
Fwd PE 19.91
P/S 8.7
P/FCF 40.48
P/OCF 34.95
P/B 12.72
P/tB 30.9
EV/EBITDA 27.24
EPS(TTM)6.93
EY2.52%
EPS(NY)13.83
Fwd EY5.02%
FCF(TTM)6.8
FCFY2.47%
OCF(TTM)7.88
OCFY2.86%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.07
PEG (5Y)2.38
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 10.2
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z 8.61
F-Score7
WACC8.82%
ROIC/WACC2.57
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 Y37.27%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
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 Fundamental Analysis 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 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.


Can you provide the financial health for WDC stock?

The financial health rating of WESTERN DIGITAL CORP (WDC) is 6 / 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%.