WESTERN DIGITAL CORP (WDC)
US9581021055 - Common Stock
We assign a fundamental rating of 3 out of 10 to WDC. WDC was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC may be in some trouble as it scores bad on both profitability and health. WDC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WDC was profitable.
WDC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WDC reported negative net income in multiple years.
In multiple years WDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
WDC has a Return On Assets (-1.50%) which is in line with its industry peers.
With a decent Return On Equity value of -3.13%, WDC is doing good in the industry, outperforming 64.52% of the companies in the same industry.
The Return On Invested Capital of WDC (4.23%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROIC | 4.23% |
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
WDC has a better Operating Margin (5.85%) than 61.29% of its industry peers.
WDC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 26.30%, WDC perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
In the last couple of years the Gross Margin of WDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WDC is destroying value.
Compared to 1 year ago, WDC has more shares outstanding
The number of shares outstanding for WDC has been increased compared to 5 years ago.
WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.33 indicates that WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.33, WDC perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
WDC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, WDC perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.33 |
ROIC/WACC0.36
WACC11.71%
2.3 Liquidity
A Current Ratio of 1.47 indicates that WDC should not have too much problems paying its short term obligations.
WDC has a Current ratio (1.47) which is comparable to the rest of the industry.
WDC has a Quick Ratio of 1.47. This is a bad value and indicates that WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
WDC has a Quick ratio of 0.91. This is comparable to the rest of the industry: WDC outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 157.14%, which is quite impressive.
The Revenue has grown by 50.88% in the past year. This is a very strong growth!
Measured over the past years, WDC shows a decrease in Revenue. The Revenue has been decreasing by -4.73% on average per year.
EPS 1Y (TTM)157.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%48.91%
3.2 Future
WDC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 83.43% yearly.
The Revenue is expected to grow by 9.42% on average over the next years. This is quite good.
EPS Next Y2097.8%
EPS Next 2Y404.05%
EPS Next 3Y179.33%
EPS Next 5Y83.43%
Revenue Next Year30.69%
Revenue Next 2Y20.29%
Revenue Next 3Y12.57%
Revenue Next 5Y9.42%
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
The Price/Earnings ratio is 19.06, which indicates a rather expensive current valuation of WDC.
Compared to the rest of the industry, the Price/Earnings ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 64.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. WDC is valued slightly cheaper when compared to this.
WDC is valuated cheaply with a Price/Forward Earnings ratio of 6.77.
96.77% of the companies in the same industry are more expensive than WDC, based on the Price/Forward Earnings ratio.
WDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
WDC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.91 |
4.3 Compensation for Growth
WDC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WDC's earnings are expected to grow with 179.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y404.05%
EPS Next 3Y179.33%
5. Dividend
5.1 Amount
WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WESTERN DIGITAL CORP
NASDAQ:WDC (12/20/2024, 8:00:01 PM)
After market: 61.73 +1.49 (+2.47%)60.24
+0.62 (+1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99.63%
Inst Owner Change-3.34%
Ins Owners0.27%
Ins Owner Change0.14%
Market Cap20.83B
Analysts78.71
Price Target92.87 (54.17%)
Short Float %6.31%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)2.75%
Max EPS beat(2)21.78%
EPS beat(4)4
Avg EPS beat(4)66.22%
Min EPS beat(4)2.75%
Max EPS beat(4)200.65%
EPS beat(8)7
Avg EPS beat(8)6.14%
EPS beat(12)10
Avg EPS beat(12)1.95%
EPS beat(16)14
Avg EPS beat(16)8.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.37%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)1.86%
Revenue beat(8)6
Avg Revenue beat(8)1.68%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)11
Avg Revenue beat(16)1.5%
PT rev (1m)4.59%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 6.77 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 70.6 | ||
| P/B | 1.75 | ||
| P/tB | 10.5 | ||
| EV/EBITDA | 16.91 |
EPS(TTM)3.16
EY5.25%
EPS(NY)8.89
Fwd EY14.77%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.85
OCFY1.42%
SpS49.46
BVpS34.34
TBVpS5.74
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROCE | 5.35% | ||
| ROIC | 4.23% | ||
| ROICexc | 4.65% | ||
| ROICexgc | 11.15% | ||
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 82.55% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 18.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.33 |
F-Score7
WACC11.71%
ROIC/WACC0.36
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)157.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
EPS Next Y2097.8%
EPS Next 2Y404.05%
EPS Next 3Y179.33%
EPS Next 5Y83.43%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%48.91%
Revenue Next Year30.69%
Revenue Next 2Y20.29%
Revenue Next 3Y12.57%
Revenue Next 5Y9.42%
EBIT growth 1Y155.16%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year957.67%
EBIT Next 3Y115.89%
EBIT Next 5Y60.68%
FCF growth 1Y-197.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-78.39%
OCF growth 3YN/A
OCF growth 5YN/A