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 30 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and the financial health of 1WDC get a neutral evaluation. Nothing too spectacular is happening here. 1WDC is cheap, but on the other hand it scores bad on growth.
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
1WDC has a Return On Assets of 9.76%. This is amongst the best in the industry. 1WDC outperforms 82.14% of its industry peers.
1WDC has a better Return On Equity (29.56%) than 89.29% of its industry peers.
With an excellent Return On Invested Capital value of 18.24%, 1WDC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROIC | 18.24% |
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
The Profit Margin of 1WDC (11.07%) is better than 82.14% of its industry peers.
1WDC has a Operating Margin of 18.84%. This is amongst the best in the industry. 1WDC outperforms 92.86% of its industry peers.
1WDC's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 36.93%, 1WDC is doing good in the industry, outperforming 60.71% 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 | 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%
2. Health
2.1 Basic Checks
1WDC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1WDC has more shares outstanding
The number of shares outstanding for 1WDC has been increased compared to 5 years ago.
1WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.78 indicates that 1WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
1WDC's Altman-Z score of 2.78 is fine compared to the rest of the industry. 1WDC outperforms 64.29% of its industry peers.
1WDC has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as 1WDC would need 8.59 years to pay back of all of its debts.
The Debt to FCF ratio of 1WDC (8.59) is better than 60.71% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that 1WDC is somewhat dependend on debt financing.
1WDC has a worse Debt to Equity ratio (0.91) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.91
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.56 indicates that 1WDC should not have too much problems paying its short term obligations.
1WDC's Current ratio of 1.56 is in line compared to the rest of the industry. 1WDC outperforms 53.57% of its industry peers.
1WDC has a Quick Ratio of 1.31. This is a normal value and indicates that 1WDC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.31, 1WDC is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
1WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 267.11%, which is quite impressive.
1WDC shows a decrease in Revenue. In the last year, the revenue decreased by -1.52%.
1WDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.73% yearly.
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
3.2 Future
The Earnings Per Share is expected to grow by 80.27% on average over the next years. This is a very strong growth
1WDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.52% yearly.
EPS Next Y1385.94%
EPS Next 2Y305.86%
EPS Next 3Y156.29%
EPS Next 5Y80.27%
Revenue Next Year-27.71%
Revenue Next 2Y-11.67%
Revenue Next 3Y-8.18%
Revenue Next 5Y-3.52%
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
Based on the Price/Earnings ratio of 9.04, the valuation of 1WDC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1WDC indicates a rather cheap valuation: 1WDC is cheaper than 85.71% of the companies listed in the same industry.
1WDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
The Price/Forward Earnings ratio is 10.43, which indicates a very decent valuation of 1WDC.
64.29% of the companies in the same industry are more expensive than 1WDC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. 1WDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 10.43 |
4.2 Price Multiples
1WDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1WDC is cheaper than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1WDC indicates a somewhat cheap valuation: 1WDC is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.44 | ||
| EV/EBITDA | 7.41 |
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.
The decent profitability rating of 1WDC may justify a higher PE ratio.
A more expensive valuation may be justified as 1WDC's earnings are expected to grow with 156.29% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y305.86%
EPS Next 3Y156.29%
5. Dividend
5.1 Amount
1WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WDC (6/9/2025, 7:00:00 PM)
49.835
+8.5 (+20.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.34%
Inst Owner ChangeN/A
Ins Owners0.46%
Ins Owner ChangeN/A
Market Cap17.39B
Analysts80.67
Price Target52.76 (5.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)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)-31.88%
PT rev (3m)-31.88%
EPS NQ rev (1m)20.09%
EPS NQ rev (3m)20.09%
EPS NY rev (1m)-16.64%
EPS NY rev (3m)-16.64%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)-15.37%
Revenue NY rev (3m)-15.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 10.43 | ||
| P/S | 1.39 | ||
| P/FCF | 23.44 | ||
| P/OCF | 15.27 | ||
| P/B | 3.7 | ||
| P/tB | 19.8 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)5.51
EY11.06%
EPS(NY)4.78
Fwd EY9.58%
FCF(TTM)2.13
FCFY4.27%
OCF(TTM)3.26
OCFY6.55%
SpS35.94
BVpS13.46
TBVpS2.52
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 29.56% | ||
| ROCE | 24.32% | ||
| ROIC | 18.24% | ||
| ROICexc | 26.46% | ||
| ROICexgc | 61.56% | ||
| 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 Rank | Sector 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 | 2.78 |
F-Score6
WACC9.57%
ROIC/WACC1.91
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)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
EPS Next Y1385.94%
EPS Next 2Y305.86%
EPS Next 3Y156.29%
EPS Next 5Y80.27%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
Revenue Next Year-27.71%
Revenue Next 2Y-11.67%
Revenue Next 3Y-8.18%
Revenue Next 5Y-3.52%
EBIT growth 1Y278.83%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year568.48%
EBIT Next 3Y99.25%
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