WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
BIT:1WDC - Euronext Milan - US9581021055 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1WDC. 1WDC was compared to 28 industry peers in the Technology Hardware, Storage & Peripherals industry. 1WDC has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1WDC.
1. Profitability
1.1 Basic Checks
1WDC had positive earnings in the past year.
In the past year 1WDC had a positive cash flow from operations.
In multiple years 1WDC reported negative net income over the last 5 years.
In multiple years 1WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.73%, 1WDC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.75%, 1WDC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.91%, 1WDC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 9.75% | ||
| ROIC | 8.91% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.72%, 1WDC belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
1WDC has a Operating Margin of 15.80%. This is amongst the best in the industry. 1WDC outperforms 89.29% of its industry peers.
In the last couple of years the Operating Margin of 1WDC has declined.
Looking at the Gross Margin, with a value of 34.75%, 1WDC is in the better half of the industry, outperforming 67.86% 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 | 15.8% | ||
| PM (TTM) | 7.72% | ||
| GM | 34.75% |
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 just above the Cost of Capital (WACC), so 1WDC is still creating some value.
1WDC has more shares outstanding than it did 1 year ago.
1WDC has more shares outstanding than it did 5 years ago.
1WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.30 indicates that 1WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
1WDC's Altman-Z score of 2.30 is fine compared to the rest of the industry. 1WDC outperforms 64.29% of its industry peers.
The Debt to FCF ratio of 1WDC is 16.89, which is on the high side as it means it would take 1WDC, 16.89 years of fcf income to pay off all of its debts.
1WDC has a Debt to FCF ratio of 16.89. This is comparable to the rest of the industry: 1WDC outperforms 53.57% of its industry peers.
1WDC has a Debt/Equity ratio of 0.58. This is a neutral value indicating 1WDC is somewhat dependend on debt financing.
The Debt to Equity ratio of 1WDC (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.89 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.2
WACC7.41%
2.3 Liquidity
A Current Ratio of 1.99 indicates that 1WDC should not have too much problems paying its short term obligations.
The Current ratio of 1WDC (1.99) is better than 71.43% of its industry peers.
1WDC has a Quick Ratio of 1.26. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1WDC (1.26) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.90%, which is quite impressive.
1WDC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.38%.
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)196.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%356.52%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%41.33%
3.2 Future
1WDC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 83.43% yearly.
The Revenue is expected to grow by 9.42% on average over the next years. This is quite good.
EPS Next Y1642.68%
EPS Next 2Y363.95%
EPS Next 3Y183.08%
EPS Next 5Y83.43%
Revenue Next Year-14.58%
Revenue Next 2Y-11.45%
Revenue Next 3Y0.92%
Revenue Next 5Y9.42%
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
With a Price/Earnings ratio of 7.98, the valuation of 1WDC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of 1WDC indicates a rather cheap valuation: 1WDC is cheaper than 92.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1WDC to the average of the S&P500 Index (29.35), we can say 1WDC is valued rather cheaply.
1WDC is valuated cheaply with a Price/Forward Earnings ratio of 6.05.
89.29% of the companies in the same industry are more expensive than 1WDC, based on the Price/Forward Earnings ratio.
1WDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WDC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
1WDC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1WDC is cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.8 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
1WDC's 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 183.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y363.95%
EPS Next 3Y183.08%
5. Dividend
5.1 Amount
1WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WDC (3/5/2025, 7:00:00 PM)
41.335
-4.95 (-10.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap14.38B
Analysts78
Price Target77.45 (87.37%)
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)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-1.74%
Max EPS beat(2)2.75%
EPS beat(4)3
Avg EPS beat(4)55.86%
Min EPS beat(4)-1.74%
Max EPS beat(4)200.65%
EPS beat(8)7
Avg EPS beat(8)35.99%
EPS beat(12)9
Avg EPS beat(12)1.21%
EPS beat(16)13
Avg EPS beat(16)6.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.46%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)1.86%
Revenue beat(8)5
Avg Revenue beat(8)1.25%
Revenue beat(12)8
Avg Revenue beat(12)1.19%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)-10.23%
PT rev (3m)-9.52%
EPS NQ rev (1m)6.59%
EPS NQ rev (3m)-47.46%
EPS NY rev (1m)-13.94%
EPS NY rev (3m)-22.78%
Revenue NQ rev (1m)-41.17%
Revenue NQ rev (3m)-49.97%
Revenue NY rev (1m)-31.76%
Revenue NY rev (3m)-34.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 6.05 | ||
| P/S | 1 | ||
| P/FCF | 35.8 | ||
| P/OCF | 18.13 | ||
| P/B | 1.26 | ||
| P/tB | 6.15 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)5.18
EY12.53%
EPS(NY)6.83
Fwd EY16.53%
FCF(TTM)1.15
FCFY2.79%
OCF(TTM)2.28
OCFY5.52%
SpS41.31
BVpS32.69
TBVpS6.73
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 9.75% | ||
| ROCE | 11.88% | ||
| ROIC | 8.91% | ||
| ROICexc | 10.02% | ||
| ROICexgc | 21.37% | ||
| OM | 15.8% | ||
| PM (TTM) | 7.72% | ||
| GM | 34.75% | ||
| FCFM | 2.79% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.89 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 79.74% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 6.3 | ||
| Cash Conversion | 28.72% | ||
| Profit Quality | 36.21% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.3 |
F-Score7
WACC7.41%
ROIC/WACC1.2
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)196.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%356.52%
EPS Next Y1642.68%
EPS Next 2Y363.95%
EPS Next 3Y183.08%
EPS Next 5Y83.43%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%41.33%
Revenue Next Year-14.58%
Revenue Next 2Y-11.45%
Revenue Next 3Y0.92%
Revenue Next 5Y9.42%
EBIT growth 1Y209.22%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year761.55%
EBIT Next 3Y111.8%
EBIT Next 5Y60.68%
FCF growth 1Y205.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.3%
OCF growth 3YN/A
OCF growth 5YN/A