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WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

NASDAQ:WDC - Nasdaq - US9581021055 - Common Stock - Currency: USD

65.78  +1.94 (+3.04%)

After market: 65.77 -0.01 (-0.02%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WDC. 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 valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year WDC was profitable.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B 4B

1.2 Ratios

The Return On Assets of WDC (9.76%) is better than 84.38% of its industry peers.
With an excellent Return On Equity value of 29.56%, WDC belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
WDC has a better Return On Invested Capital (19.21%) than 84.38% of its industry peers.
Industry RankSector Rank
ROA 9.76%
ROE 29.56%
ROIC 19.21%
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
WDC Yearly ROA, ROE, ROICWDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

WDC has a Profit Margin of 11.07%. This is amongst the best in the industry. WDC outperforms 84.38% of its industry peers.
The Operating Margin of WDC (18.84%) is better than 84.38% of its industry peers.
In the last couple of years the Operating Margin of WDC has declined.
With a decent Gross Margin value of 36.93%, WDC is doing good in the industry, outperforming 71.88% of the companies in the same industry.
In the last couple of years the Gross Margin of WDC has remained more or less at the same level.
Industry RankSector Rank
OM 18.84%
PM (TTM) 11.07%
GM 36.93%
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%
WDC Yearly Profit, Operating, Gross MarginsWDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

4

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.
Compared to 5 years ago, WDC has more shares outstanding
Compared to 1 year ago, WDC has a worse debt to assets ratio.
WDC Yearly Shares OutstandingWDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
WDC Yearly Total Debt VS Total AssetsWDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

An Altman-Z score of 2.91 indicates that WDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WDC (2.91) is better than 71.88% of its industry peers.
WDC has a debt to FCF ratio of 8.59. This is a slightly negative value and a sign of low solvency as WDC would need 8.59 years to pay back of all of its debts.
WDC has a Debt to FCF ratio (8.59) which is in line with its industry peers.
WDC has a Debt/Equity ratio of 0.91. This is a neutral value indicating WDC is somewhat dependend on debt financing.
WDC has a worse Debt to Equity ratio (0.91) than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 8.59
Altman-Z 2.91
ROIC/WACC1.96
WACC9.81%
WDC Yearly LT Debt VS Equity VS FCFWDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

2.3 Liquidity

A Current Ratio of 1.56 indicates that WDC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.56, WDC perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
WDC has a Quick Ratio of 1.31. 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 better Quick ratio (1.31) than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.31
WDC Yearly Current Assets VS Current LiabilitesWDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 267.11% over the past year.
WDC shows a decrease in Revenue. In the last year, the revenue decreased by -1.52%.
The Revenue has been decreasing by -4.73% on average over the past years.
EPS 1Y (TTM)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%

3.2 Future

The Earnings Per Share is expected to grow by 80.27% on average over the next years. This is a very strong growth
WDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.52% yearly.
EPS Next Y1385.94%
EPS Next 2Y305.86%
EPS Next 3Y156.29%
EPS Next 5Y80.27%
Revenue Next Year-27.71%
Revenue Next 2Y-11.67%
Revenue Next 3Y-8.18%
Revenue Next 5Y-3.52%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WDC Yearly Revenue VS EstimatesWDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
WDC Yearly EPS VS EstimatesWDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 10

8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.36, the valuation of WDC can be described as reasonable.
Based on the Price/Earnings ratio, WDC is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
WDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 11.96, the valuation of WDC can be described as reasonable.
Based on the Price/Forward Earnings ratio, WDC is valued a bit cheaper than 71.88% of the companies in the same industry.
WDC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.36
Fwd PE 11.96
WDC Price Earnings VS Forward Price EarningsWDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

81.25% of the companies in the same industry are more expensive than WDC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 26.87
EV/EBITDA 8.11
WDC Per share dataWDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
WDC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WDC's earnings are expected to grow with 156.29% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y305.86%
EPS Next 3Y156.29%

3

5. Dividend

5.1 Amount

WDC has a yearly dividend return of 0.16%, which is pretty low.
Compared to an average industry Dividend Yield of 1.99, WDC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.16, WDC pays less dividend than the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 0.16%

5.2 History

WDC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
WDC Yearly Dividends per shareWDC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2025 0.5 1 1.5

5.3 Sustainability

DP0%
EPS Next 2Y305.86%
EPS Next 3Y156.29%
WDC Yearly Income VS Free CF VS DividendWDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B

WESTERN DIGITAL CORP

NASDAQ:WDC (7/2/2025, 8:00:02 PM)

After market: 65.77 -0.01 (-0.02%)

65.78

+1.94 (+3.04%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-29 2025-07-29/amc
Inst Owners104.34%
Inst Owner Change5.5%
Ins Owners0.46%
Ins Owner Change2.8%
Market Cap22.95B
Analysts80.67
Price Target61.05 (-7.19%)
Short Float %10%
Short Ratio5.22
Dividend
Industry RankSector Rank
Dividend Yield 0.16%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-04 2025-06-04 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.06%
Min EPS beat(2)-1.74%
Max EPS beat(2)19.85%
EPS beat(4)3
Avg EPS beat(4)10.66%
Min EPS beat(4)-1.74%
Max EPS beat(4)21.78%
EPS beat(8)7
Avg EPS beat(8)36.77%
EPS beat(12)9
Avg EPS beat(12)1.98%
EPS beat(16)13
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.37%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)7
Avg Revenue beat(12)0.89%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)-1.58%
PT rev (3m)-21.34%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)20.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-15.37%
Valuation
Industry RankSector Rank
PE 10.36
Fwd PE 11.96
P/S 1.59
P/FCF 26.87
P/OCF 17.51
P/B 4.25
P/tB 22.7
EV/EBITDA 8.11
EPS(TTM)6.35
EY9.65%
EPS(NY)5.5
Fwd EY8.36%
FCF(TTM)2.45
FCFY3.72%
OCF(TTM)3.76
OCFY5.71%
SpS41.38
BVpS15.5
TBVpS2.9
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.76%
ROE 29.56%
ROCE 24.32%
ROIC 19.21%
ROICexc 27.87%
ROICexgc 64.84%
OM 18.84%
PM (TTM) 11.07%
GM 36.93%
FCFM 5.91%
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-Score6
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 8.59
Debt/EBITDA 1.52
Cap/Depr 90.85%
Cap/Sales 3.17%
Interest Coverage 7.35
Cash Conversion 40.68%
Profit Quality 53.44%
Current Ratio 1.56
Quick Ratio 1.31
Altman-Z 2.91
F-Score6
WACC9.81%
ROIC/WACC1.96
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)267.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.87%
EPS Next Y1385.94%
EPS Next 2Y305.86%
EPS Next 3Y156.29%
EPS Next 5Y80.27%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%-33.64%
Revenue Next Year-27.71%
Revenue Next 2Y-11.67%
Revenue Next 3Y-8.18%
Revenue Next 5Y-3.52%
EBIT growth 1Y278.83%
EBIT growth 3Y-44.45%
EBIT growth 5Y-12%
EBIT Next Year568.48%
EBIT Next 3Y99.25%
EBIT Next 5Y48.54%
FCF growth 1Y183.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3013.33%
OCF growth 3YN/A
OCF growth 5YN/A