172.263 USD
-3.8 (-2.16%)
Overall WDC gets a fundamental rating of 5 out of 10. We evaluated WDC against 35 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 has a correct valuation and a medium growth rate.
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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.50%, WDC belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
WDC has a Return On Equity of 41.08%. This is amongst the best in the industry. WDC outperforms 91.43% of its industry peers.
WDC's Return On Invested Capital of 24.17% is amongst the best of the industry. WDC outperforms 91.43% of its industry peers.
| 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
With an excellent Profit Margin value of 20.94%, WDC belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 39.34%, WDC is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
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
WDC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, WDC has a worse debt to assets ratio.
2.2 Solvency
WDC has an Altman-Z score of 6.14. This indicates that WDC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WDC (6.14) is better than 85.71% of its industry peers.
The Debt to FCF ratio of WDC is 2.33, which is a good value as it means it would take WDC, 2.33 years of fcf income to pay off all of its debts.
WDC's Debt to FCF ratio of 2.33 is fine compared to the rest of the industry. WDC outperforms 77.14% of its industry peers.
WDC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
WDC has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.14 |
ROIC/WACC2.88
WACC8.39%
2.3 Liquidity
WDC has a Current Ratio of 1.21. 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 Current ratio of 1.21. This is comparable to the rest of the industry: WDC outperforms 42.86% of its industry peers.
A Quick Ratio of 0.94 indicates that WDC may have some problems paying its short term obligations.
WDC has a Quick ratio (0.94) which 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
WDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.91%, 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.
Looking at the last year, WDC shows a very negative growth in Revenue. The Revenue has decreased by -29.80% in the last year.
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)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 Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
EPS Next 5Y13.2%
Revenue Next Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.22, WDC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WDC.
When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (26.77), we can say WDC is valued inline with the index average.
The Price/Forward Earnings ratio is 17.76, which indicates a rather expensive current valuation of WDC.
WDC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.35. WDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 68.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WDC is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.29 | ||
| EV/EBITDA | 18.94 |
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.
WDC's earnings are expected to grow with 19.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)1.57
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, WDC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.58, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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 2Y21.51%
EPS Next 3Y19.56%
NASDAQ:WDC (12/31/2025, 12:15:05 PM)
172.263
-3.8 (-2.16%)
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-2.31%
Ins Owners0.31%
Ins Owner Change0.57%
Market Cap58.90B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target187.73 (8.98%)
Short Float %9.22%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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)4.52%
PT rev (3m)103.6%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)13.42%
EPS NY rev (1m)6.03%
EPS NY rev (3m)16.88%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)4.65%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 17.76 | ||
| P/S | 4.91 | ||
| P/FCF | 29.29 | ||
| P/OCF | 24.54 | ||
| P/B | 9.63 | ||
| P/tB | 32.76 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)6.57
EY3.81%
EPS(NY)9.7
Fwd EY5.63%
FCF(TTM)5.88
FCFY3.41%
OCF(TTM)7.02
OCFY4.07%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)1.45
PEG (5Y)1.57
Graham Number51.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.5% | ||
| ROE | 41.08% | ||
| ROCE | 30.6% | ||
| ROIC | 24.17% | ||
| ROICexc | 35.97% | ||
| ROICexgc | 119.78% | ||
| 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 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 Turnover0.84
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 | 6.14 |
F-Score7
WACC8.39%
ROIC/WACC2.88
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 Y18.12%
EPS Next 2Y21.51%
EPS Next 3Y19.56%
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 Year25.13%
Revenue Next 2Y19.02%
Revenue Next 3Y15.39%
Revenue Next 5Y12.63%
EBIT growth 1Y181.1%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year82.36%
EBIT Next 3Y33.64%
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 26.22 and the Price/Book (PB) ratio is 9.63.
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 18.12% in the next year.