WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis
USA - NASDAQ:WDC - US9581021055 - Common Stock
162.955 USD
-0.64 (-0.39%)
164.88 USD
+1.92 (+1.18%)
We assign a fundamental rating of 5 out of 10 to WDC. WDC was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While WDC belongs to the best of the industry regarding profitability, there are concerns on its financial health. WDC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WDC had positive earnings in the past year.
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.
In multiple years WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
WDC's Return On Assets of 17.50% is amongst the best of the industry. WDC outperforms 91.43% of its industry peers.
With an excellent Return On Equity value of 41.08%, WDC belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
The Return On Invested Capital of WDC (24.17%) is better than 91.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROIC | 24.17% |
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
The Profit Margin of WDC (20.94%) is better than 94.29% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
With an excellent Operating Margin value of 23.42%, WDC belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
WDC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.34%, WDC is doing good in the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Gross Margin of WDC 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
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.
The debt/assets ratio for WDC is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WDC is 2.33, which is a good value as it means it would take WDC, 2.33 years of fcf income to pay off all of its debts.
WDC's Debt to FCF ratio of 2.33 is fine compared to the rest of the industry. WDC outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
The Debt to Equity ratio of WDC (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | N/A |
ROIC/WACC2.89
WACC8.36%
2.3 Liquidity
WDC has a Current Ratio of 1.21. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
WDC's Current ratio of 1.21 is in line compared to the rest of the industry. WDC outperforms 42.86% of its industry peers.
WDC has a Quick Ratio of 1.21. This is a bad value and indicates that WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, WDC is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.91% over the past year.
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, WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
The Revenue for WDC have been decreasing by -10.67% on average. This is quite bad
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 11.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.66% on average over the next years. This is quite good.
EPS Next Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y16.78%
EPS Next 5Y11.5%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y14.66%
Revenue Next 5Y11.66%
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
Based on the Price/Earnings ratio of 24.80, the valuation of WDC can be described as rather expensive.
Based on the Price/Earnings ratio, WDC is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, WDC is valued at the same level.
WDC is valuated rather expensively with a Price/Forward Earnings ratio of 18.70.
65.71% of the companies in the same industry are more expensive than WDC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (32.68), we can say WDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than 68.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 65.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.78 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WDC does not grow enough to justify the current Price/Earnings ratio.
WDC has a very decent profitability rating, which may justify a higher PE ratio.
WDC's earnings are expected to grow with 16.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)1.49
EPS Next 2Y15.17%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, WDC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.85, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
The dividend of WDC decreases each year by -42.40%.
WDC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-42.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WDC pays out 3.30% of its income as dividend. This is a sustainable payout ratio.
DP3.3%
EPS Next 2Y15.17%
EPS Next 3Y16.78%
162.955
-0.64 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change-0.61%
Ins Owners0.49%
Ins Owner Change4.29%
Market Cap55.86B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts79.38
Price Target129.04 (-20.81%)
Short Float %10.03%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)39.96%
PT rev (3m)103.73%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)2.14%
EPS NY rev (3m)22.74%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)6.24%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)8.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.8 | ||
| Fwd PE | 18.7 | ||
| P/S | 4.65 | ||
| P/FCF | 27.78 | ||
| P/OCF | 23.28 | ||
| P/B | 9.13 | ||
| P/tB | 31.07 | ||
| EV/EBITDA | 18.26 |
EPS(TTM)6.57
EY4.03%
EPS(NY)8.71
Fwd EY5.35%
FCF(TTM)5.87
FCFY3.6%
OCF(TTM)7
OCFY4.3%
SpS35.01
BVpS17.84
TBVpS5.25
PEG (NY)2.17
PEG (5Y)1.49
Graham Number51.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 24.17% | ||
| ROICexc | 31.11% | ||
| ROICexgc | 78.78% | ||
| 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 3Y48.5%
ROICexgc growth 5Y76.15%
ROICexc growth 3Y32.58%
ROICexc growth 5Y68.99%
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 | 250 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score7
WACC8.36%
ROIC/WACC2.89
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 Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y16.78%
EPS Next 5Y11.5%
Revenue 1Y (TTM)-29.8%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-31.18%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y14.66%
Revenue Next 5Y11.66%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year55.13%
EBIT Next 3Y27.84%
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 / WDC FAQ
Can you provide the ChartMill fundamental rating for WESTERN DIGITAL CORP?
ChartMill assigns a fundamental rating of 5 / 10 to WDC.
Can you provide the valuation status for WESTERN DIGITAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to WESTERN DIGITAL CORP (WDC). This can be considered as Fairly Valued.
Can you provide the profitability details for WESTERN DIGITAL CORP?
WESTERN DIGITAL CORP (WDC) has a profitability rating of 7 / 10.
What is the valuation of WESTERN DIGITAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WESTERN DIGITAL CORP (WDC) is 24.8 and the Price/Book (PB) ratio is 9.13.
Can you provide the expected EPS growth for WDC stock?
The Earnings per Share (EPS) of WESTERN DIGITAL CORP (WDC) is expected to grow by 11.41% in the next year.