WESTERN DIGITAL CORP (WDC) Fundamental Analysis & Valuation

NASDAQ:WDC • US9581021055

Current stock price

434.52 USD
+21.76 (+5.27%)
At close:
404.39 USD
-30.13 (-6.93%)
Pre-Market:

This WDC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WDC Profitability Analysis

1.1 Basic Checks

  • In the past year WDC was profitable.
  • In the past year WDC had a positive cash flow from operations.
  • In multiple years WDC reported negative net income over the last 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: WDC reported negative operating cash flow in multiple years.
WDC Yearly Net Income VS EBIT VS OCF VS FCFWDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 23.89%, WDC belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 50.82%, WDC belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
  • WDC has a Return On Invested Capital of 22.70%. This is amongst the best in the industry. WDC outperforms 91.89% of its industry peers.
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROIC 22.7%
ROA(3y)0.89%
ROA(5y)2.34%
ROE(3y)3.69%
ROE(5y)6.28%
ROIC(3y)N/A
ROIC(5y)N/A
WDC Yearly ROA, ROE, ROICWDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 34.75%, WDC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • WDC's Profit Margin has improved in the last couple of years.
  • WDC has a Operating Margin of 27.93%. This is amongst the best in the industry. WDC outperforms 94.59% of its industry peers.
  • WDC's Operating Margin has improved in the last couple of years.
  • WDC has a Gross Margin of 42.72%. This is in the better half of the industry: WDC outperforms 78.38% of its industry peers.
  • In the last couple of years the Gross Margin of WDC has grown nicely.
Industry RankSector Rank
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
WDC Yearly Profit, Operating, Gross MarginsWDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

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5

2. WDC Health Analysis

2.1 Basic Checks

  • WDC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for WDC has been increased compared to 1 year ago.
  • WDC has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, WDC has a worse debt to assets ratio.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
WDC Yearly Total Debt VS Total AssetsWDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 12.52 indicates that WDC is not in any danger for bankruptcy at the moment.
  • WDC has a better Altman-Z score (12.52) than 91.89% of its industry peers.
  • The Debt to FCF ratio of WDC is 2.02, which is a good value as it means it would take WDC, 2.02 years of fcf income to pay off all of its debts.
  • WDC has a Debt to FCF ratio of 2.02. This is in the better half of the industry: WDC outperforms 78.38% of its industry peers.
  • WDC has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.33, WDC perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z 12.52
ROIC/WACC2.55
WACC8.89%
WDC Yearly LT Debt VS Equity VS FCFWDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • WDC has a Current Ratio of 1.45. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of WDC (1.45) is comparable to the rest of the industry.
  • A Quick Ratio of 1.19 indicates that WDC should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.19, WDC perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.45
Quick Ratio 1.19
WDC Yearly Current Assets VS Current LiabilitesWDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. WDC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 30.55% over the past year.
  • WDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
  • The Revenue has grown by 50.70% in the past year. This is a very strong growth!
  • The Revenue for WDC have been decreasing by -10.67% on average. This is quite bad
EPS 1Y (TTM)30.55%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%100%
Revenue 1Y (TTM)50.7%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%45.47%

3.2 Future

  • WDC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.49% yearly.
  • WDC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.51% yearly.
EPS Next Y37.07%
EPS Next 2Y44.84%
EPS Next 3Y40.64%
EPS Next 5Y35.49%
Revenue Next Year32.7%
Revenue Next 2Y29.59%
Revenue Next 3Y25.38%
Revenue Next 5Y22.51%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
WDC Yearly Revenue VS EstimatesWDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
WDC Yearly EPS VS EstimatesWDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 10 20 30

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3

4. WDC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 52.41 indicates a quite expensive valuation of WDC.
  • WDC's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, WDC is valued quite expensively.
  • With a Price/Forward Earnings ratio of 31.53, WDC can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WDC.
  • When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (21.75), we can say WDC is valued slightly more expensively.
Industry RankSector Rank
PE 52.41
Fwd PE 31.53
WDC Price Earnings VS Forward Price EarningsWDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • WDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDC is cheaper than 62.16% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as WDC.
Industry RankSector Rank
P/FCF 63.89
EV/EBITDA 43.23
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • WDC has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as WDC's earnings are expected to grow with 40.64% in the coming years.
PEG (NY)1.41
PEG (5Y)3.15
EPS Next 2Y44.84%
EPS Next 3Y40.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. WDC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.13%, WDC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.70, WDC pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, WDC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.13%

5.2 History

  • The dividend of WDC decreases each year by -42.40%.
  • WDC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
WDC Yearly Dividends per shareWDC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2025 2026 0.5 1 1.5

5.3 Sustainability

  • WDC pays out 3.51% of its income as dividend. This is a sustainable payout ratio.
DP3.51%
EPS Next 2Y44.84%
EPS Next 3Y40.64%
WDC Yearly Income VS Free CF VS DividendWDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B
WDC Dividend Payout.WDC Dividend Payout, showing the Payout Ratio.WDC Dividend Payout.PayoutRetained Earnings

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WDC Fundamentals: All Metrics, Ratios and Statistics

WESTERN DIGITAL CORP

NASDAQ:WDC (4/30/2026, 10:30:12 PM)

Premarket: 404.39 -30.13 (-6.93%)

434.52

+21.76 (+5.27%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Industry Strength67.7
Industry Growth75.16
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners103.26%
Inst Owner Change-0.18%
Ins Owners0.28%
Ins Owner Change-3.72%
Market Cap147.32B
Revenue(TTM)9.52B
Net Income(TTM)3.73B
Analysts82
Price Target369.2 (-15.03%)
Short Float %7.93%
Short Ratio3.21
Dividend
Industry RankSector Rank
Dividend Yield 0.13%
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.77%
Min EPS beat(2)9.95%
Max EPS beat(2)11.58%
EPS beat(4)4
Avg EPS beat(4)13.04%
Min EPS beat(4)9.95%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)34.45%
EPS beat(12)11
Avg EPS beat(12)28.34%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)2.17%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)1.24%
PT rev (1m)3.58%
PT rev (3m)74.81%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)22.13%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)15%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)10.14%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)5.25%
Valuation
Industry RankSector Rank
PE 52.41
Fwd PE 31.53
P/S 13.72
P/FCF 63.89
P/OCF 55.16
P/B 20.07
P/tB 48.77
EV/EBITDA 43.23
EPS(TTM)8.29
EY1.91%
EPS(NY)13.78
Fwd EY3.17%
FCF(TTM)6.8
FCFY1.57%
OCF(TTM)7.88
OCFY1.81%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.41
PEG (5Y)3.15
Graham Number63.5464 (-85.38%)
Profitability
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROCE 28.73%
ROIC 22.7%
ROICexc 37.05%
ROICexgc 114.25%
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
FCFM 21.48%
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 Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Debt/EBITDA 0.72
Cap/Depr 97.07%
Cap/Sales 3.4%
Interest Coverage 10.2
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z 12.52
F-Score7
WACC8.89%
ROIC/WACC2.55
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)30.55%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%100%
EPS Next Y37.07%
EPS Next 2Y44.84%
EPS Next 3Y40.64%
EPS Next 5Y35.49%
Revenue 1Y (TTM)50.7%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%45.47%
Revenue Next Year32.7%
Revenue Next 2Y29.59%
Revenue Next 3Y25.38%
Revenue Next 5Y22.51%
EBIT growth 1Y142.56%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year107.17%
EBIT Next 3Y56.9%
EBIT Next 5Y35.61%
FCF growth 1Y236.94%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y328.88%
OCF growth 3Y-3.47%
OCF growth 5Y15.46%

WESTERN DIGITAL CORP / WDC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?

ChartMill assigns a fundamental rating of 6 / 10 to WDC.


What is the valuation status of WESTERN DIGITAL CORP (WDC) stock?

ChartMill assigns a valuation rating of 3 / 10 to WESTERN DIGITAL CORP (WDC). This can be considered as Overvalued.


What is the profitability of WDC stock?

WESTERN DIGITAL CORP (WDC) has a profitability rating of 7 / 10.


How financially healthy is WESTERN DIGITAL CORP?

The financial health rating of WESTERN DIGITAL CORP (WDC) is 5 / 10.


What is the earnings growth outlook for WESTERN DIGITAL CORP?

The Earnings per Share (EPS) of WESTERN DIGITAL CORP (WDC) is expected to grow by 37.07% in the next year.