169.54 USD
-0.24 (-0.14%)
170.99 USD
+1.45 (+0.86%)
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. While WDC belongs to the best of the industry regarding profitability, 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.
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's Return On Assets of 17.50% is amongst the best of the industry. WDC outperforms 88.57% of its industry peers.
The Return On Equity of WDC (41.08%) is better than 91.43% of its industry peers.
With an excellent Return On Invested Capital value of 24.17%, WDC belongs to the best 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
WDC has a Profit Margin of 20.94%. This is amongst the best in the industry. WDC outperforms 91.43% of its industry peers.
WDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.42%, WDC belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Operating Margin of WDC has grown nicely.
WDC's Gross Margin of 39.34% is fine compared to the rest of the industry. WDC outperforms 77.14% 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
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 5.99. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
WDC has a Altman-Z score of 5.99. This is amongst the best in the industry. WDC outperforms 85.71% 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.
With a decent Debt to FCF ratio value of 2.33, WDC is doing good in the industry, outperforming 77.14% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, WDC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 5.99 |
ROIC/WACC2.87
WACC8.43%
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 Current ratio (1.21) which is in line with 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.
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
The Earnings Per Share has grown by an impressive 107.91% over the past year.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
Looking at the last year, WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
The Revenue for WDC have been decreasing by -10.67% on average. This is quite bad
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.
WDC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.63% yearly.
EPS Next Y16.53%
EPS Next 2Y20.14%
EPS Next 3Y17.69%
EPS Next 5Y13.2%
Revenue Next Year24.69%
Revenue Next 2Y18.48%
Revenue Next 3Y14.31%
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 25.81, which means the current valuation is very expensive for WDC.
WDC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (26.28), we can say WDC is valued inline with the index average.
The Price/Forward Earnings ratio is 17.88, which indicates a rather expensive current valuation of WDC.
WDC's Price/Forward Earnings ratio is in line with the industry average.
WDC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than 71.43% 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 65.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.82 | ||
| EV/EBITDA | 18.87 |
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 17.69% in the coming years.
PEG (NY)1.56
PEG (5Y)1.55
EPS Next 2Y20.14%
EPS Next 3Y17.69%
5. Dividend
5.1 Amount
WDC has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 1.91, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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 2Y20.14%
EPS Next 3Y17.69%
169.54
-0.24 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.33%
Inst Owner Change-2.32%
Ins Owners0.31%
Ins Owner Change0.72%
Market Cap57.97B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target182.33 (7.54%)
Short Float %9.89%
Short Ratio3.45
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)41.29%
PT rev (3m)107.27%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)14.1%
EPS NY rev (1m)4.59%
EPS NY rev (3m)16.49%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)5.06%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 17.88 | ||
| P/S | 4.83 | ||
| P/FCF | 28.82 | ||
| P/OCF | 24.15 | ||
| P/B | 9.48 | ||
| P/tB | 32.24 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)6.57
EY3.88%
EPS(NY)9.48
Fwd EY5.59%
FCF(TTM)5.88
FCFY3.47%
OCF(TTM)7.02
OCFY4.14%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)1.56
PEG (5Y)1.55
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 | 5.99 |
F-Score7
WACC8.43%
ROIC/WACC2.87
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 Y16.53%
EPS Next 2Y20.14%
EPS Next 3Y17.69%
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 Year24.69%
Revenue Next 2Y18.48%
Revenue Next 3Y14.31%
Revenue Next 5Y12.63%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year82.14%
EBIT Next 3Y31.94%
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 25.81 and the Price/Book (PB) ratio is 9.48.
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 16.53% in the next year.