WESTERN DIGITAL CORP (1WDC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1WDC - US9581021055 - Common Stock
149.9 EUR
-4.2 (-2.73%)
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. 1WDC has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1WDC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1WDC had positive earnings in the past year.
1WDC had a positive operating cash flow in the past year.
In multiple years 1WDC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: 1WDC reported negative operating cash flow in multiple years.
1.2 Ratios
1WDC's Return On Assets of 17.50% is amongst the best of the industry. 1WDC outperforms 90.00% of its industry peers.
1WDC has a Return On Equity of 41.08%. This is amongst the best in the industry. 1WDC outperforms 90.00% of its industry peers.
1WDC's Return On Invested Capital of 22.95% is amongst the best of the industry. 1WDC outperforms 93.33% 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 better Profit Margin (20.94%) than 93.33% of its industry peers.
1WDC's Profit Margin has improved in the last couple of years.
The Operating Margin of 1WDC (23.42%) is better than 93.33% of its industry peers.
In the last couple of years the Operating Margin of 1WDC has grown nicely.
The Gross Margin of 1WDC (39.34%) is better than 63.33% of its industry peers.
In the last couple of years the Gross Margin of 1WDC has grown nicely.
| 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
1WDC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1WDC is higher compared to a year ago.
2.2 Solvency
1WDC has an Altman-Z score of 6.15. This indicates that 1WDC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.15, 1WDC belongs to the top of the industry, outperforming 83.33% 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.
The Debt to FCF ratio of 1WDC (2.33) is better than 76.67% of its industry peers.
1WDC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, 1WDC is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.15 |
ROIC/WACC2.76
WACC8.31%
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.
1WDC has a Quick ratio (0.94) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
Looking at the last year, 1WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
1WDC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.67% yearly.
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 Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 26.82, 1WDC can be considered very expensive at the moment.
1WDC's Price/Earnings ratio is in line with the industry average.
1WDC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
A Price/Forward Earnings ratio of 18.17 indicates a rather expensive valuation of 1WDC.
1WDC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.35. 1WDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
1WDC's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1WDC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.96 | ||
| EV/EBITDA | 18.96 |
4.3 Compensation for Growth
1WDC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1WDC may justify a higher PE ratio.
1WDC's earnings are expected to grow with 19.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)1.61
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
1WDC has a yearly dividend return of 0.28%, which is pretty low.
Compared to an average industry Dividend Yield of 0.97, 1WDC has a dividend in line with its industry peers.
With a Dividend Yield of 0.28, 1WDC pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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
1WDC pays out 3.30% of its income as dividend. This is a sustainable payout ratio.
DP3.3%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
BIT:1WDC (12/23/2025, 7:00:00 PM)
149.9
-4.2 (-2.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.33%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap51.25B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target149.89 (-0.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.11
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.17%
Min EPS beat(2)10.76%
Max EPS beat(2)11.58%
EPS beat(4)3
Avg EPS beat(4)10.11%
Min EPS beat(4)-1.74%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)38.17%
EPS beat(12)10
Avg EPS beat(12)7.46%
EPS beat(16)13
Avg EPS beat(16)3.99%
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)2.36%
Max Revenue beat(2)4.41%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)1.36%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)-1.71%
PT rev (3m)89.66%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)13.42%
EPS NY rev (1m)6.03%
EPS NY rev (3m)18.09%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)4.65%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 18.17 | ||
| P/S | 5.02 | ||
| P/FCF | 29.96 | ||
| P/OCF | 25.11 | ||
| P/B | 9.85 | ||
| P/tB | 33.51 | ||
| EV/EBITDA | 18.96 |
EPS(TTM)5.59
EY3.73%
EPS(NY)8.25
Fwd EY5.5%
FCF(TTM)5
FCFY3.34%
OCF(TTM)5.97
OCFY3.98%
SpS29.86
BVpS15.22
TBVpS4.47
PEG (NY)1.48
PEG (5Y)1.61
Graham Number43.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 22.95% | ||
| ROICexc | 34.15% | ||
| ROICexgc | 113.71% | ||
| OM | 23.42% | ||
| PM (TTM) | 20.94% | ||
| GM | 39.34% | ||
| FCFM | 16.76% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 96.29% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 9.31 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 6.15 |
F-Score7
WACC8.31%
ROIC/WACC2.76
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)107.91%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%0%
EPS Next Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year82.36%
EBIT Next 3Y33.64%
EBIT Next 5Y24.43%
FCF growth 1Y220.78%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y330.77%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%
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.
Can you provide the valuation status for WESTERN DIGITAL CORP?
ChartMill assigns a valuation rating of 3 / 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.
What are the PE and PB ratios of WESTERN DIGITAL CORP (1WDC.MI) stock?
The Price/Earnings (PE) ratio for WESTERN DIGITAL CORP (1WDC.MI) is 26.82 and the Price/Book (PB) ratio is 9.85.
What is the financial health of WESTERN DIGITAL CORP (1WDC.MI) stock?
The financial health rating of WESTERN DIGITAL CORP (1WDC.MI) is 5 / 10.