WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

NASDAQ:WDC • US9581021055

285.52 USD
+0.85 (+0.3%)
At close: Feb 20, 2026
284.75 USD
-0.77 (-0.27%)
After Hours: 2/20/2026, 8:10:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, WDC scores 6 out of 10 in our fundamental rating. WDC was compared to 36 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 is not priced too expensively while it is growing strongly. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year WDC was profitable.
  • In the past year WDC had a positive cash flow from operations.
  • 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.
WDC Yearly Net Income VS EBIT VS OCF VS FCFWDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

1.2 Ratios

  • WDC's Return On Assets of 23.89% is amongst the best of the industry. WDC outperforms 97.22% of its industry peers.
  • Looking at the Return On Equity, with a value of 50.82%, WDC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • The Return On Invested Capital of WDC (22.70%) is better than 91.67% of its industry peers.
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROIC 22.7%
ROA(3y)0.89%
ROA(5y)2.34%
ROE(3y)3.69%
ROE(5y)6.28%
ROIC(3y)N/A
ROIC(5y)N/A
WDC Yearly ROA, ROE, ROICWDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 34.75%, WDC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WDC has grown nicely.
  • With an excellent Operating Margin value of 27.93%, WDC belongs to the best of the industry, outperforming 97.22% 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 42.72%, WDC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • WDC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
OM growth 3Y16.77%
OM growth 5Y53.81%
PM growth 3Y32.94%
PM growth 5YN/A
GM growth 3Y6.22%
GM growth 5Y11.02%
WDC Yearly Profit, Operating, Gross MarginsWDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
  • Compared to 1 year ago, WDC has more shares outstanding
  • Compared to 5 years ago, WDC has more shares outstanding
  • The debt/assets ratio for WDC is higher compared to a year ago.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
WDC Yearly Total Debt VS Total AssetsWDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • WDC has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as WDC would need 2.02 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.02, WDC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • A Debt/Equity ratio of 0.33 indicates that WDC is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.33, WDC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z N/A
ROIC/WACC2.67
WACC8.49%
WDC Yearly LT Debt VS Equity VS FCFWDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

2.3 Liquidity

  • WDC has a Current Ratio of 1.45. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.45, WDC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • WDC has a Quick Ratio of 1.19. This is a normal value and indicates that WDC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.19, WDC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.45
Quick Ratio 1.19
WDC Yearly Current Assets VS Current LiabilitesWDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.31%, which is quite impressive.
  • Measured over the past years, WDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
  • The Revenue has grown by 28.14% in the past year. This is a very strong growth!
  • Measured over the past years, WDC shows a very negative growth in Revenue. The Revenue has been decreasing by -10.67% on average per year.
EPS 1Y (TTM)23.31%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%20.34%
Revenue 1Y (TTM)28.14%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-29.59%

3.2 Future

  • WDC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.90% yearly.
  • The Revenue is expected to grow by 16.23% on average over the next years. This is quite good.
EPS Next Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
EPS Next 5Y24.9%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
Revenue Next 5Y16.23%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
WDC Yearly Revenue VS EstimatesWDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
WDC Yearly EPS VS EstimatesWDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 41.20, the valuation of WDC can be described as expensive.
  • Based on the Price/Earnings ratio, WDC is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
  • WDC is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.45 indicates a rather expensive valuation of WDC.
  • WDC's Price/Forward Earnings is on the same level as the industry average.
  • WDC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.02.
Industry RankSector Rank
PE 41.2
Fwd PE 22.45
WDC Price Earnings VS Forward Price EarningsWDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than 61.11% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 41.98
EV/EBITDA 28.26
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 36.37% in the coming years.
PEG (NY)1.24
PEG (5Y)2.47
EPS Next 2Y39.12%
EPS Next 3Y36.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.18%, WDC is not a good candidate for dividend investing.
  • WDC's Dividend Yield is a higher than the industry average which is at 0.66.
  • Compared to an average S&P500 Dividend Yield of 1.81, WDC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.18%

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
WDC Yearly Dividends per shareWDC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2025 2026 0.5 1 1.5

5.3 Sustainability

  • WDC pays out 3.51% of its income as dividend. This is a sustainable payout ratio.
DP3.51%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
WDC Yearly Income VS Free CF VS DividendWDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B
WDC Dividend Payout.WDC Dividend Payout, showing the Payout Ratio.WDC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

WESTERN DIGITAL CORP

NASDAQ:WDC (2/20/2026, 8:10:21 PM)

After market: 284.75 -0.77 (-0.27%)

285.52

+0.85 (+0.3%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners104.48%
Inst Owner Change-1.43%
Ins Owners0.3%
Ins Owner Change0.91%
Market Cap96.80B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts80
Price Target279.7 (-2.04%)
Short Float %9.35%
Short Ratio3.33
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.77%
Min EPS beat(2)9.95%
Max EPS beat(2)11.58%
EPS beat(4)4
Avg EPS beat(4)13.04%
Min EPS beat(4)9.95%
Max EPS beat(4)19.85%
EPS beat(8)7
Avg EPS beat(8)34.45%
EPS beat(12)11
Avg EPS beat(12)28.34%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)2.17%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)4.41%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)8
Avg Revenue beat(12)1.3%
Revenue beat(16)11
Avg Revenue beat(16)1.24%
PT rev (1m)46.44%
PT rev (3m)55.73%
EPS NQ rev (1m)21.77%
EPS NQ rev (3m)24%
EPS NY rev (1m)11.81%
EPS NY rev (3m)19.62%
Revenue NQ rev (1m)10.07%
Revenue NQ rev (3m)10.63%
Revenue NY rev (1m)4.92%
Revenue NY rev (3m)8.61%
Valuation
Industry RankSector Rank
PE 41.2
Fwd PE 22.45
P/S 9.02
P/FCF 41.98
P/OCF 36.24
P/B 13.19
P/tB 32.04
EV/EBITDA 28.26
EPS(TTM)6.93
EY2.43%
EPS(NY)12.72
Fwd EY4.45%
FCF(TTM)6.8
FCFY2.38%
OCF(TTM)7.88
OCFY2.76%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.24
PEG (5Y)2.47
Graham Number58.1
Profitability
Industry RankSector Rank
ROA 23.89%
ROE 50.82%
ROCE 28.73%
ROIC 22.7%
ROICexc 37.05%
ROICexgc 114.25%
OM 27.93%
PM (TTM) 34.75%
GM 42.72%
FCFM 21.48%
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 Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Debt/EBITDA 0.72
Cap/Depr 97.07%
Cap/Sales 3.4%
Interest Coverage 250
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z N/A
F-Score7
WACC8.49%
ROIC/WACC2.67
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)23.31%
EPS 3Y-7.2%
EPS 5Y16.66%
EPS Q2Q%20.34%
EPS Next Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
EPS Next 5Y24.9%
Revenue 1Y (TTM)28.14%
Revenue growth 3Y-20.28%
Revenue growth 5Y-10.67%
Sales Q2Q%-29.59%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
Revenue Next 5Y16.23%
EBIT growth 1Y142.56%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year84.38%
EBIT Next 3Y39.22%
EBIT Next 5Y35.61%
FCF growth 1Y236.94%
FCF growth 3Y19.05%
FCF growth 5Y48.52%
OCF growth 1Y328.88%
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 6 / 10 to WDC.


What is the valuation status of WESTERN DIGITAL CORP (WDC) stock?

ChartMill assigns a valuation rating of 5 / 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 4 / 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 3.51%.