WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1WDC • US9581021055
232.95 EUR
+21.4 (+10.12%)
Last: Jan 29, 2026, 07:00 PM
Overall 1WDC gets a fundamental rating of 5 out of 10. We evaluated 1WDC against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. While 1WDC has a great profitability rating, there are some minor concerns on its financial health. 1WDC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1WDC was profitable.
- In the past year 1WDC had a positive cash flow from operations.
- 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
- The Return On Assets of 1WDC (17.50%) is better than 87.10% of its industry peers.
- 1WDC's Return On Equity of 41.08% is amongst the best of the industry. 1WDC outperforms 87.10% of its industry peers.
- 1WDC has a Return On Invested Capital of 22.95%. This is amongst the best in the industry. 1WDC outperforms 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROIC | 22.95% |
ROA(3y)0.89%
ROA(5y)2.34%
ROE(3y)3.69%
ROE(5y)6.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1WDC has a Profit Margin of 20.94%. This is amongst the best in the industry. 1WDC outperforms 90.32% of its industry peers.
- In the last couple of years the Profit Margin of 1WDC has grown nicely.
- With an excellent Operating Margin value of 23.42%, 1WDC belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- 1WDC's Operating Margin has improved in the last couple of years.
- 1WDC has a Gross Margin (39.34%) which is in line with its industry peers.
- 1WDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.42% | ||
| PM (TTM) | 20.94% | ||
| GM | 39.34% |
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1WDC is creating value.
- Compared to 1 year ago, 1WDC has more shares outstanding
- Compared to 5 years ago, 1WDC has more shares outstanding
- The debt/assets ratio for 1WDC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.70 indicates that 1WDC is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.70, 1WDC belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- 1WDC has a debt to FCF ratio of 2.33. This is a good value and a sign of high solvency as 1WDC would need 2.33 years to pay back of all of its debts.
- 1WDC's Debt to FCF ratio of 2.33 is amongst the best of the industry. 1WDC outperforms 80.65% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that 1WDC is not too dependend on debt financing.
- 1WDC's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. 1WDC outperforms 54.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 8.7 |
ROIC/WACC2.68
WACC8.57%
2.3 Liquidity
- 1WDC has a Current Ratio of 1.21. 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 (1.21) which is in line with its industry peers.
- A Quick Ratio of 0.94 indicates that 1WDC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.94, 1WDC is in line with its industry, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- 1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.91%, which is quite impressive.
- Measured over the past years, 1WDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
- 1WDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.80%.
- Measured over the past years, 1WDC shows a very negative growth in Revenue. The Revenue has been decreasing by -10.67% on average per year.
EPS 1Y (TTM)107.91%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%0%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
3.2 Future
- The Earnings Per Share is expected to grow by 13.20% on average over the next years. This is quite good.
- Based on estimates for the next years, 1WDC will show a quite strong growth in Revenue. The Revenue will grow by 12.63% on average per year.
EPS Next Y19.19%
EPS Next 2Y23.35%
EPS Next 3Y22.25%
EPS Next 5Y13.2%
Revenue Next Year26.08%
Revenue Next 2Y21.59%
Revenue Next 3Y17.46%
Revenue Next 5Y12.63%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- With a Price/Earnings ratio of 42.43, 1WDC can be considered very expensive at the moment.
- 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 more expensive than the S&P500 average which is at 28.30.
- Based on the Price/Forward Earnings ratio of 27.89, the valuation of 1WDC can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1WDC is on the same level as its industry peers.
- 1WDC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.43 | ||
| Fwd PE | 27.89 |
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 61.29% of the companies listed in the same industry.
- 1WDC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.4 | ||
| EV/EBITDA | 29.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1WDC does not grow enough to justify the current Price/Earnings ratio.
- 1WDC has a very decent profitability rating, which may justify a higher PE ratio.
- 1WDC's earnings are expected to grow with 22.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)2.55
EPS Next 2Y23.35%
EPS Next 3Y22.25%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.21%, 1WDC is not a good candidate for dividend investing.
- 1WDC's Dividend Yield is a higher than the industry average which is at 0.91.
- Compared to an average S&P500 Dividend Yield of 1.82, 1WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
- The dividend of 1WDC decreases each year by -42.40%.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 3.30% of the earnings are spent on dividend by 1WDC. This is a low number and sustainable payout ratio.
DP3.3%
EPS Next 2Y23.35%
EPS Next 3Y22.25%
WESTERN DIGITAL CORP / 1WDC.MI FAQ
Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to 1WDC.MI.
What is the valuation status for 1WDC stock?
ChartMill assigns a valuation rating of 2 / 10 to WESTERN DIGITAL CORP (1WDC.MI). This can be considered as Overvalued.
How profitable is WESTERN DIGITAL CORP (1WDC.MI) stock?
WESTERN DIGITAL CORP (1WDC.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1WDC stock?
The Price/Earnings (PE) ratio for WESTERN DIGITAL CORP (1WDC.MI) is 42.43 and the Price/Book (PB) ratio is 15.58.
How financially healthy is WESTERN DIGITAL CORP?
The financial health rating of WESTERN DIGITAL CORP (1WDC.MI) is 5 / 10.