WESTERN DIGITAL CORP(NASDAQ:WDC) stock Fundamental Analysis

Fundamental Rating

WDC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of WDC have multiple concerns. WDC is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

WDC had positive earnings in the past year.

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.

The reported operating cash flow has been mixed in the past 5 years: WDC reported negative operating cash flow in multiple years.

1.2 Ratios

WDC has a Return On Assets (-1.50%) which is in line with its industry peers.

WDC has a Return On Equity of -3.13%. This is in the better half of the industry: WDC outperforms 61.29% of its industry peers.

WDC has a Return On Invested Capital (4.23%) which is in line with its industry peers.

		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.

WDC has a Gross Margin of 26.30%. This is comparable to the rest of the industry: WDC outperforms 41.94% of its industry peers.

WDC's Gross Margin has been stable in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

WDC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

Compared to 1 year ago, WDC has more shares outstanding

WDC has more shares outstanding than it did 5 years ago.

Compared to 1 year ago, WDC has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.42 indicates that WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.

WDC's Altman-Z score of 2.42 is fine compared to the rest of the industry. WDC outperforms 61.29% of its industry peers.

A Debt/Equity ratio of 0.48 indicates that WDC is not too dependend on debt financing.

With a Debt to Equity ratio value of 0.48, WDC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.48
Debt/FCF	N/A
Altman-Z	2.42

ROIC/WACC0.38

WACC11.23%

2.3 Liquidity

WDC has a Current Ratio of 1.47. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.

WDC has a Current ratio of 1.47. This is comparable to the rest of the industry: WDC outperforms 48.39% of its industry peers.

A Quick Ratio of 0.91 indicates that WDC may have some problems paying its short term obligations.

WDC has a Quick ratio (0.91) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	0.91

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 157.14% over the past year.

Looking at the last year, WDC shows a very strong growth in Revenue. The Revenue has grown by 50.88%.

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

Based on estimates for the next years, WDC will show a very strong growth in Earnings Per Share. The EPS will grow by 83.43% on average per year.

WDC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.

EPS Next Y2075.96%

EPS Next 2Y402.25%

EPS Next 3Y180.39%

EPS Next 5Y83.43%

Revenue Next Year29.34%

Revenue Next 2Y19.66%

Revenue Next 3Y12.33%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.34, which indicates a rather expensive current valuation of WDC.

61.29% of the companies in the same industry are more expensive than WDC, based on the Price/Earnings ratio.

Compared to an average S&P500 Price/Earnings ratio of 28.29, WDC is valued a bit cheaper.

The Price/Forward Earnings ratio is 7.64, which indicates a rather cheap valuation of WDC.

96.77% of the companies in the same industry are more expensive than WDC, based on the Price/Forward Earnings ratio.

Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, WDC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	21.34
Fwd PE	7.64

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WDC.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	18.11

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.

A more expensive valuation may be justified as WDC's earnings are expected to grow with 180.39% in the coming years.

PEG (NY)0.01

PEG (5Y)N/A

EPS Next 2Y402.25%

EPS Next 3Y180.39%

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5. Dividend

5.1 Amount

No dividends for WDC!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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WESTERN DIGITAL CORP

NASDAQ:WDC (1/21/2025, 6:31:38 PM)

After market: 67.55 +0.12 (+0.18%)

67.43

+2.39 (+3.67%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryTechnology Hardware, Storage & Peripherals

Earnings (Last)10-24 2024-10-24/amc

Earnings (Next)01-29 2025-01-29/amc

Inst Owners99.63%

Inst Owner Change0.02%

Ins Owners0.27%

Ins Owner Change0.14%

Market Cap23.31B

Analysts78.06

Price Target92.67 (37.43%)

Short Float %5.98%

Short Ratio4.06

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0

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)-0.22%

PT rev (3m)3.57%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-14.4%

EPS NY rev (1m)0%

EPS NY rev (3m)-6.06%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-6.38%

Revenue NY rev (1m)-0.72%

Revenue NY rev (3m)-3.07%

Valuation

		Industry Rank	Sector Rank
PE	21.34
Fwd PE	7.64
P/S	1.36
P/FCF	N/A
P/OCF	79.02
P/B	1.96
P/tB	11.76
EV/EBITDA	18.11

EPS(TTM)3.16

EY4.69%

EPS(NY)8.83

Fwd EY13.09%

FCF(TTM)-0.47

FCFYN/A

OCF(TTM)0.85

OCFY1.27%

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	2.42

F-Score7

WACC11.23%

ROIC/WACC0.38

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 Y2075.96%

EPS Next 2Y402.25%

EPS Next 3Y180.39%

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 Year29.34%

Revenue Next 2Y19.66%

Revenue Next 3Y12.33%

Revenue Next 5Y9.42%

EBIT growth 1Y155.16%

EBIT growth 3Y-44.45%

EBIT growth 5Y-12%

EBIT Next Year915.95%

EBIT Next 3Y119.89%

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

WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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