WESTERN DIGITAL CORP (WDC) Fundamental Analysis & Valuation

NASDAQ:WDC • US9581021055

Current stock price

338.78 USD
+26.82 (+8.6%)
At close:
337.19 USD
-1.59 (-0.47%)
After Hours:

This WDC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WDC Profitability Analysis

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.
  • 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

  • With an excellent Return On Assets value of 23.89%, WDC belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
  • WDC's Return On Equity of 50.82% is amongst the best of the industry. WDC outperforms 91.89% of its industry peers.
  • WDC has a Return On Invested Capital of 22.70%. This is amongst the best in the industry. WDC outperforms 91.89% 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

  • WDC's Profit Margin of 34.75% is amongst the best of the industry. WDC outperforms 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of WDC has grown nicely.
  • Looking at the Operating Margin, with a value of 27.93%, WDC belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
  • WDC's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 42.72%, WDC belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WDC has grown nicely.
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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6

2. WDC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
  • The number of shares outstanding for WDC has been increased compared to 1 year ago.
  • WDC has more shares outstanding than it did 5 years ago.
  • 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

  • An Altman-Z score of 9.51 indicates that WDC is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 9.51, WDC belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
  • 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.
  • WDC has a Debt to FCF ratio of 2.02. This is amongst the best in the industry. WDC outperforms 81.08% of its industry peers.
  • A Debt/Equity ratio of 0.33 indicates that WDC is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.33, WDC is in line with its industry, outperforming 59.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z 9.51
ROIC/WACC2.59
WACC8.76%
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

  • A Current Ratio of 1.45 indicates that WDC should not have too much problems paying its short term obligations.
  • WDC's Current ratio of 1.45 is in line compared to the rest of the industry. WDC outperforms 45.95% of its industry peers.
  • 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.
  • WDC has a Quick ratio of 1.19. This is comparable to the rest of the industry: WDC outperforms 56.76% of its industry peers.
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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7

3. WDC Growth Analysis

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.
  • 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 strong growth in Revenue. In the last year, the Revenue has grown by 28.14%.
  • 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)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.
  • Based on estimates for the next years, WDC will show a quite strong growth in Revenue. The Revenue will grow by 16.23% on average per year.
EPS Next Y37.27%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
EPS Next 5Y24.9%
Revenue Next Year32.59%
Revenue Next 2Y29.71%
Revenue Next 3Y25.3%
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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4

4. WDC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 48.89 indicates a quite 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.
  • When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (26.91), we can say WDC is valued expensively.
  • WDC is valuated rather expensively with a Price/Forward Earnings ratio of 24.49.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WDC is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, WDC is valued at the same level.
Industry RankSector Rank
PE 48.89
Fwd PE 24.49
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

  • WDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDC is cheaper than 62.16% of the companies in the same industry.
  • WDC's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 49.81
EV/EBITDA 30.92
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • WDC's 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 40.88% in the coming years.
PEG (NY)1.31
PEG (5Y)2.93
EPS Next 2Y45.09%
EPS Next 3Y40.88%

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3

5. WDC Dividend Analysis

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 0.62.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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

  • 3.51% of the earnings are spent on dividend by WDC. This is a low number and sustainable payout ratio.
DP3.51%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
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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WDC Fundamentals: All Metrics, Ratios and Statistics

WESTERN DIGITAL CORP

NASDAQ:WDC (4/8/2026, 8:09:14 PM)

After market: 337.19 -1.59 (-0.47%)

338.78

+26.82 (+8.6%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners103.44%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change-3.62%
Market Cap114.86B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts82
Price Target322.33 (-4.86%)
Short Float %8.17%
Short Ratio2.74
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)0%
PT rev (3m)71.7%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)22.01%
EPS NY rev (1m)0%
EPS NY rev (3m)16.21%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)10.16%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)5.96%
Valuation
Industry RankSector Rank
PE 48.89
Fwd PE 24.49
P/S 10.7
P/FCF 49.81
P/OCF 43
P/B 15.65
P/tB 38.02
EV/EBITDA 30.92
EPS(TTM)6.93
EY2.05%
EPS(NY)13.83
Fwd EY4.08%
FCF(TTM)6.8
FCFY2.01%
OCF(TTM)7.88
OCFY2.33%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.31
PEG (5Y)2.93
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 10.2
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z 9.51
F-Score7
WACC8.76%
ROIC/WACC2.59
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 Y37.27%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
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 Year32.59%
Revenue Next 2Y29.71%
Revenue Next 3Y25.3%
Revenue Next 5Y16.23%
EBIT growth 1Y142.56%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year107.17%
EBIT Next 3Y56.59%
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 Fundamental Analysis 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 4 / 10 to WESTERN DIGITAL CORP (WDC). This can be considered as Fairly Valued.


What is the profitability of WDC stock?

WESTERN DIGITAL CORP (WDC) has a profitability rating of 7 / 10.


How financially healthy is WESTERN DIGITAL CORP?

The financial health rating of WESTERN DIGITAL CORP (WDC) is 6 / 10.


What is the earnings growth outlook for WESTERN DIGITAL CORP?

The Earnings per Share (EPS) of WESTERN DIGITAL CORP (WDC) is expected to grow by 37.27% in the next year.