163.54 USD
+0.21 (+0.13%)
164.1 USD
+0.56 (+0.34%)
Taking everything into account, WDC scores 5 out of 10 in our fundamental rating. WDC was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC has an excellent profitability rating, but there are some minor concerns on its financial health. WDC has a decent growth rate and is not valued too expensively.
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 better Return On Assets (17.50%) than 88.57% of its industry peers.
WDC has a Return On Equity of 41.08%. This is amongst the best in the industry. WDC outperforms 91.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.17%, WDC belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 20.94%, WDC belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
WDC's Profit Margin has improved in the last couple of years.
The Operating Margin of WDC (23.42%) is better than 94.29% of its industry peers.
In the last couple of years the Operating Margin of WDC has grown nicely.
WDC has a Gross Margin of 39.34%. This is in the better half of the industry: WDC outperforms 74.29% of its industry peers.
WDC's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
WDC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WDC has more shares outstanding
WDC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.82 indicates that WDC is not in any danger for bankruptcy at the moment.
WDC has a Altman-Z score of 5.82. This is amongst the best in the industry. WDC outperforms 82.86% of its industry peers.
WDC has a debt to FCF ratio of 2.33. This is a good value and a sign of high solvency as WDC would need 2.33 years to pay back of all of its debts.
WDC has a better Debt to FCF ratio (2.33) than 77.14% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
WDC has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 5.82 |
ROIC/WACC2.92
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.21 indicates that WDC should not have too much problems paying its short term obligations.
WDC has a worse Current ratio (1.21) than 60.00% 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.
WDC has a Quick ratio of 0.94. This is comparable to the rest of the industry: WDC outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.91%, which is quite impressive.
WDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.66% yearly.
WDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.80%.
WDC 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.
The Revenue is expected to grow by 12.63% on average over the next years. This is quite good.
EPS Next Y11.41%
EPS Next 2Y15.17%
EPS Next 3Y17.32%
EPS Next 5Y13.2%
Revenue Next Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y15.04%
Revenue Next 5Y12.63%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 24.89 indicates a rather expensive valuation of WDC.
Compared to the rest of the industry, the Price/Earnings ratio of WDC is on the same level as its industry peers.
WDC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.11.
WDC is valuated rather expensively with a Price/Forward Earnings ratio of 18.77.
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 (36.21), we can say WDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.8 | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.32% in the coming years.
PEG (NY)2.18
PEG (5Y)1.49
EPS Next 2Y15.17%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, WDC is not a good candidate for dividend investing.
WDC's Dividend Yield is a higher than the industry average which is at 1.95.
Compared to an average S&P500 Dividend Yield of 2.32, 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 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
5.3 Sustainability
3.30% of the earnings are spent on dividend by WDC. This is a low number and sustainable payout ratio.
DP3.3%
EPS Next 2Y15.17%
EPS Next 3Y17.32%
163.54
+0.21 (+0.13%)
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-2.36%
Ins Owners0.49%
Ins Owner Change0.85%
Market Cap55.91B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts79.38
Price Target179.61 (9.83%)
Short Float %9.38%
Short Ratio3.21
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)72.54%
PT rev (3m)104.18%
EPS NQ rev (1m)11.32%
EPS NQ rev (3m)13.92%
EPS NY rev (1m)7.92%
EPS NY rev (3m)11.38%
Revenue NQ rev (1m)3.55%
Revenue NQ rev (3m)4.92%
Revenue NY rev (1m)2.38%
Revenue NY rev (3m)3.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 18.77 | ||
| P/S | 4.66 | ||
| P/FCF | 27.8 | ||
| P/OCF | 23.3 | ||
| P/B | 9.14 | ||
| P/tB | 31.1 | ||
| EV/EBITDA | 18.19 |
EPS(TTM)6.57
EY4.02%
EPS(NY)8.71
Fwd EY5.33%
FCF(TTM)5.88
FCFY3.6%
OCF(TTM)7.02
OCFY4.29%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)2.18
PEG (5Y)1.49
Graham Number51.43
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 | 9.31 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 80.02% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.82 |
F-Score7
WACC8.28%
ROIC/WACC2.92
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 3Y17.32%
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 Year21.8%
Revenue Next 2Y15.37%
Revenue Next 3Y15.04%
Revenue Next 5Y12.63%
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 24.89 and the Price/Book (PB) ratio is 9.14.
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.