WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
BIT:1WDC - Borsa Italiana Milan - US9581021055 - Common Stock - Currency: EUR
1WDC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Technology Hardware, Storage & Peripherals industry. 1WDC may be in some trouble as it scores bad on both profitability and health. 1WDC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1WDC was profitable.
1WDC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1WDC reported negative net income in multiple years.
In multiple years 1WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -1.50%, 1WDC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of 1WDC (-3.13%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.01%, 1WDC perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROIC | 4.01% |
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
1WDC's Operating Margin of 5.85% is in line compared to the rest of the industry. 1WDC outperforms 51.85% of its industry peers.
1WDC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 26.30%, 1WDC perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Gross Margin of 1WDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1WDC is destroying value.
1WDC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1WDC has more shares outstanding
1WDC has a worse debt/assets ratio than last year.
2.2 Solvency
1WDC has an Altman-Z score of 2.37. This is not the best score and indicates that 1WDC is in the grey zone with still only limited risk for bankruptcy at the moment.
1WDC has a better Altman-Z score (2.37) than 66.67% of its industry peers.
1WDC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, 1WDC perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.37 |
ROIC/WACC0.38
WACC10.61%
2.3 Liquidity
1WDC has a Current Ratio of 1.47. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
1WDC has a Current ratio of 1.47. This is comparable to the rest of the industry: 1WDC outperforms 59.26% of its industry peers.
A Quick Ratio of 0.91 indicates that 1WDC may have some problems paying its short term obligations.
1WDC has a Quick ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 157.14%, which is quite impressive.
1WDC shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.88%.
Measured over the past years, 1WDC shows a decrease in Revenue. The Revenue has been decreasing by -4.73% on average per year.
EPS 1Y (TTM)157.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%48.91%
3.2 Future
Based on estimates for the next years, 1WDC will show a very strong growth in Earnings Per Share. The EPS will grow by 83.43% on average per year.
1WDC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y2075.96%
EPS Next 2Y402.25%
EPS Next 3Y180.39%
EPS Next 5Y83.43%
Revenue Next Year30.28%
Revenue Next 2Y20.17%
Revenue Next 3Y12.57%
Revenue Next 5Y9.42%
3.3 Evolution
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
1WDC is valuated rather expensively with a Price/Earnings ratio of 19.69.
Compared to the rest of the industry, the Price/Earnings ratio of 1WDC is on the same level as its industry peers.
1WDC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 7.06, the valuation of 1WDC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1WDC indicates a somewhat cheap valuation: 1WDC is cheaper than 77.78% of the companies listed in the same industry.
1WDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1WDC indicates a slightly more expensive valuation: 1WDC is more expensive than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.5 |
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.
1WDC's earnings are expected to grow with 180.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y402.25%
EPS Next 3Y180.39%
5. Dividend
5.1 Amount
1WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WESTERN DIGITAL CORP
BIT:1WDC (1/29/2025, 7:00:00 PM)
60.26
+1.91 (+3.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99.63%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap20.83B
Analysts78.71
Price Target88.79 (47.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)2.75%
Max EPS beat(2)21.78%
EPS beat(4)4
Avg EPS beat(4)66.22%
Min EPS beat(4)2.75%
Max EPS beat(4)200.65%
EPS beat(8)7
Avg EPS beat(8)6.14%
EPS beat(12)10
Avg EPS beat(12)1.95%
EPS beat(16)14
Avg EPS beat(16)8.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.37%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)1.86%
Revenue beat(8)6
Avg Revenue beat(8)1.68%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)11
Avg Revenue beat(16)1.5%
PT rev (1m)3.73%
PT rev (3m)7.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.4%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-6.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 7.06 | ||
| P/S | 1.26 | ||
| P/FCF | N/A | ||
| P/OCF | 72.98 | ||
| P/B | 1.81 | ||
| P/tB | 10.86 | ||
| EV/EBITDA | 17.5 |
EPS(TTM)3.06
EY5.08%
EPS(NY)8.54
Fwd EY14.17%
FCF(TTM)-0.46
FCFYN/A
OCF(TTM)0.83
OCFY1.37%
SpS47.85
BVpS33.23
TBVpS5.55
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROCE | 5.35% | ||
| ROIC | 4.01% | ||
| ROICexc | 4.42% | ||
| ROICexgc | 10.58% | ||
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 82.55% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 18.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.37 |
F-Score7
WACC10.61%
ROIC/WACC0.38
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)157.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
EPS Next Y2075.96%
EPS Next 2Y402.25%
EPS Next 3Y180.39%
EPS Next 5Y83.43%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%48.91%
Revenue Next Year30.28%
Revenue Next 2Y20.17%
Revenue Next 3Y12.57%
Revenue Next 5Y9.42%
EBIT growth 1Y155.16%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year957.67%
EBIT Next 3Y115.89%
EBIT Next 5Y60.68%
FCF growth 1Y-197.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-78.39%
OCF growth 3YN/A
OCF growth 5YN/A