187.68 USD
-12.2 (-6.1%)
186.01 USD
-1.67 (-0.89%)
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 has a great profitability rating, 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
WDC had positive earnings in the past year.
WDC had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of WDC (17.50%) is better than 91.43% of its industry peers.
Looking at the Return On Equity, with a value of 41.08%, WDC belongs to the top 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
With an excellent Profit Margin value of 20.94%, WDC belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Profit Margin of WDC has grown nicely.
Looking at the Operating Margin, with a value of 23.42%, WDC belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
WDC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.34%, WDC is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDC is creating value.
The number of shares outstanding for WDC has been increased compared to 1 year ago.
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
WDC has an Altman-Z score of 6.73. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
WDC has a Altman-Z score of 6.73. This is amongst the best in the industry. WDC outperforms 85.71% of its industry peers.
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 has a Debt to FCF ratio of 2.33. This is in the better half of the industry: WDC outperforms 77.14% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, WDC is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.73 |
ROIC/WACC2.85
WACC8.48%
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 has a Current ratio of 1.21. This is comparable to the rest of the industry: WDC outperforms 48.57% of its industry peers.
A Quick Ratio of 0.94 indicates that WDC may have some problems paying its short term obligations.
The Quick ratio of WDC (0.94) is comparable to the rest of the industry.
| 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.
The Revenue for WDC has decreased by -29.80% in the past year. This is quite bad
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 Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
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
The Price/Earnings ratio is 28.57, which means the current valuation is very expensive for WDC.
Based on the Price/Earnings ratio, WDC is valued a bit cheaper than 65.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. WDC is around the same levels.
A Price/Forward Earnings ratio of 19.35 indicates a rather expensive valuation of WDC.
WDC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (23.70), we can say WDC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 19.35 |
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 65.71% 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 | 31.91 | ||
| EV/EBITDA | 21.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WDC may justify a higher PE ratio.
A more expensive valuation may be justified as WDC's earnings are expected to grow with 19.56% in the coming years.
PEG (NY)1.58
PEG (5Y)1.71
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
WDC has a yearly dividend return of 0.29%, which is pretty low.
Compared to an average industry Dividend Yield of 0.63, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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 2Y21.51%
EPS Next 3Y19.56%
187.68
-12.2 (-6.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change0.57%
Market Cap64.17B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target187.73 (0.03%)
Short Float %9.22%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.52%
PT rev (3m)80.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.93%
EPS NY rev (1m)1.37%
EPS NY rev (3m)16.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.5%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)5.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 19.35 | ||
| P/S | 5.35 | ||
| P/FCF | 31.91 | ||
| P/OCF | 26.74 | ||
| P/B | 10.49 | ||
| P/tB | 35.69 | ||
| EV/EBITDA | 21.48 |
EPS(TTM)6.57
EY3.5%
EPS(NY)9.7
Fwd EY5.17%
FCF(TTM)5.88
FCFY3.13%
OCF(TTM)7.02
OCFY3.74%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)1.58
PEG (5Y)1.71
Graham Number51.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 24.17% | ||
| ROICexc | 35.97% | ||
| ROICexgc | 119.78% | ||
| 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 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 Turnover0.84
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 | 6.73 |
F-Score7
WACC8.48%
ROIC/WACC2.85
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 Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
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 Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year82.36%
EBIT Next 3Y33.64%
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.
What is the valuation status of WESTERN DIGITAL CORP (WDC) stock?
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.
Can you provide the financial health for WDC stock?
The financial health rating of WESTERN DIGITAL CORP (WDC) is 5 / 10.
How sustainable is the dividend of WESTERN DIGITAL CORP (WDC) stock?
The dividend rating of WESTERN DIGITAL CORP (WDC) is 3 / 10 and the dividend payout ratio is 3.3%.