WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis
NASDAQ:WDC - Nasdaq - US9581021055 - Common Stock - Currency: USD
Taking everything into account, WDC scores 4 out of 10 in our fundamental rating. WDC was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC has an average financial health and profitability rating. WDC is cheap, but on the other hand it scores bad on growth.
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 Return On Assets of 4.73%. This is in the better half of the industry: WDC outperforms 71.88% of its industry peers.
With a decent Return On Equity value of 9.75%, WDC is doing good in the industry, outperforming 78.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.38%, WDC is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 9.75% | ||
| ROIC | 9.38% |
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 Profit Margin of 7.72%. This is amongst the best in the industry. WDC outperforms 81.25% of its industry peers.
WDC has a better Operating Margin (15.80%) than 84.38% of its industry peers.
WDC's Operating Margin has declined in the last couple of years.
WDC has a better Gross Margin (34.75%) than 65.63% of its industry peers.
WDC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.8% | ||
| PM (TTM) | 7.72% | ||
| GM | 34.75% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WDC is still creating some value.
WDC has more shares outstanding than it did 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 2.17. This is not the best score and indicates that WDC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WDC (2.17) is better than 62.50% of its industry peers.
WDC has a debt to FCF ratio of 16.89. This is a negative value and a sign of low solvency as WDC would need 16.89 years to pay back of all of its debts.
WDC's Debt to FCF ratio of 16.89 is in line compared to the rest of the industry. WDC outperforms 53.13% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that WDC is somewhat dependend on debt financing.
WDC has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.89 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.29
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.99 indicates that WDC should not have too much problems paying its short term obligations.
WDC has a better Current ratio (1.99) than 65.63% of its industry peers.
A Quick Ratio of 1.26 indicates that WDC should not have too much problems paying its short term obligations.
WDC's Quick ratio of 1.26 is fine compared to the rest of the industry. WDC outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 196.90% over the past year.
Looking at the last year, WDC shows a quite strong growth in Revenue. The Revenue has grown by 11.38% in the last year.
WDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.73% yearly.
EPS 1Y (TTM)196.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%356.52%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%41.33%
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 83.47% on average per year.
WDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.09% yearly.
EPS Next Y1380.49%
EPS Next 2Y298.99%
EPS Next 3Y161.63%
EPS Next 5Y83.47%
Revenue Next Year-16.71%
Revenue Next 2Y-12.65%
Revenue Next 3Y-2.88%
Revenue Next 5Y-5.09%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.50, the valuation of WDC can be described as very cheap.
WDC's Price/Earnings ratio is rather cheap when compared to the industry. WDC is cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. WDC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.90, the valuation of WDC can be described as very cheap.
WDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WDC is cheaper than 87.50% of the companies in the same industry.
WDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WDC is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
The 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 161.63% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y298.99%
EPS Next 3Y161.63%
5. Dividend
5.1 Amount
WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.51
+0.89 (+2.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change1.55%
Market Cap12.70B
Analysts78.62
Price Target77.62 (112.6%)
Short Float %9.3%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-1.74%
Max EPS beat(2)2.75%
EPS beat(4)3
Avg EPS beat(4)55.86%
Min EPS beat(4)-1.74%
Max EPS beat(4)200.65%
EPS beat(8)7
Avg EPS beat(8)35.99%
EPS beat(12)9
Avg EPS beat(12)1.21%
EPS beat(16)13
Avg EPS beat(16)6.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-0.46%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)1.86%
Revenue beat(8)5
Avg Revenue beat(8)1.25%
Revenue beat(12)8
Avg Revenue beat(12)1.19%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)-5.12%
PT rev (3m)-16.24%
EPS NQ rev (1m)3.02%
EPS NQ rev (3m)-36%
EPS NY rev (1m)-17%
EPS NY rev (3m)-35.2%
Revenue NQ rev (1m)9.22%
Revenue NQ rev (3m)-40.66%
Revenue NY rev (1m)-2.5%
Revenue NY rev (3m)-35.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 6.9 | ||
| P/S | 0.81 | ||
| P/FCF | 29.13 | ||
| P/OCF | 14.75 | ||
| P/B | 1.03 | ||
| P/tB | 5 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)5.62
EY15.39%
EPS(NY)5.29
Fwd EY14.49%
FCF(TTM)1.25
FCFY3.43%
OCF(TTM)2.48
OCFY6.78%
SpS44.85
BVpS35.5
TBVpS7.3
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 9.75% | ||
| ROCE | 11.88% | ||
| ROIC | 9.38% | ||
| ROICexc | 10.55% | ||
| ROICexgc | 22.5% | ||
| OM | 15.8% | ||
| PM (TTM) | 7.72% | ||
| GM | 34.75% | ||
| FCFM | 2.79% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.89 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 79.74% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 6.3 | ||
| Cash Conversion | 28.72% | ||
| Profit Quality | 36.21% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.17 |
F-Score7
WACC7.28%
ROIC/WACC1.29
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)196.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%356.52%
EPS Next Y1380.49%
EPS Next 2Y298.99%
EPS Next 3Y161.63%
EPS Next 5Y83.47%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%41.33%
Revenue Next Year-16.71%
Revenue Next 2Y-12.65%
Revenue Next 3Y-2.88%
Revenue Next 5Y-5.09%
EBIT growth 1Y209.22%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year611.47%
EBIT Next 3Y89.26%
EBIT Next 5Y47.82%
FCF growth 1Y205.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.3%
OCF growth 3YN/A
OCF growth 5YN/A