WESTERN DIGITAL CORP (WDC) Fundamental Analysis & Valuation

NASDAQ:WDC • US9581021055

Current stock price

293.1 USD
-23.83 (-7.52%)
At close:
297 USD
+3.9 (+1.33%)
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.
  • 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.
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

  • WDC's Return On Assets of 23.89% is amongst the best of the industry. WDC outperforms 97.30% of its industry peers.
  • Looking at the Return On Equity, with a value of 50.82%, WDC belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
  • 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 has a Profit Margin of 34.75%. This is amongst the best in the industry. WDC outperforms 100.00% of its industry peers.
  • WDC's Profit Margin has improved in the last couple of years.
  • WDC has a Operating Margin of 27.93%. This is amongst the best in the industry. WDC outperforms 97.30% of its industry peers.
  • In the last couple of years the Operating Margin of WDC has grown nicely.
  • The Gross Margin of WDC (42.72%) is better than 81.08% of its industry peers.
  • WDC's Gross Margin has improved in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WDC is creating value.
  • Compared to 1 year ago, WDC has more shares outstanding
  • 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.
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 9.63 indicates that WDC is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of WDC (9.63) is better than 86.49% of its industry peers.
  • 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.
  • With an excellent Debt to FCF ratio value of 2.02, WDC belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
  • A Debt/Equity ratio of 0.33 indicates that WDC is not too dependend on debt financing.
  • WDC has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: WDC outperforms 59.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z 9.63
ROIC/WACC2.62
WACC8.65%
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.
  • Looking at the Current ratio, with a value of 1.45, WDC is in line with its industry, outperforming 48.65% of the companies in the same industry.
  • 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 (1.19) which is comparable to the rest of the industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • Measured over the past years, WDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.66% on average per year.
  • The Revenue has grown by 28.14% in the past year. This is a very strong growth!
  • The Revenue for WDC have been decreasing by -10.67% on average. This is quite bad
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

  • The Earnings Per Share is expected to grow by 24.90% on average over the next years. This is a very strong growth
  • WDC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.23% yearly.
EPS Next Y37.27%
EPS Next 2Y45.09%
EPS Next 3Y40.88%
EPS Next 5Y24.9%
Revenue Next Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
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.
  • 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 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

  • With a Price/Earnings ratio of 42.29, WDC can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as WDC.
  • WDC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.23.
  • With a Price/Forward Earnings ratio of 21.19, WDC is valued on the expensive side.
  • WDC's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. WDC is around the same levels.
Industry RankSector Rank
PE 42.29
Fwd PE 21.19
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

  • Based on the Enterprise Value to EBITDA ratio, WDC is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as WDC.
Industry RankSector Rank
P/FCF 43.09
EV/EBITDA 31.42
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.
  • WDC has a very decent profitability rating, which may justify a higher PE ratio.
  • WDC's earnings are expected to grow with 40.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)2.54
EPS Next 2Y45.09%
EPS Next 3Y40.88%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. WDC Dividend Analysis

5.1 Amount

  • WDC has a yearly dividend return of 0.18%, which is pretty low.
  • WDC's Dividend Yield is a higher than the industry average which is at 0.63.
  • Compared to an average S&P500 Dividend Yield of 1.91, 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 (3/20/2026, 9:28:05 PM)

After market: 297 +3.9 (+1.33%)

293.1

-23.83 (-7.52%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners103.44%
Inst Owner Change-1.51%
Ins Owners0.29%
Ins Owner Change-3.22%
Market Cap99.37B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts80
Price Target322.33 (9.97%)
Short Float %8.86%
Short Ratio3.01
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)15.24%
PT rev (3m)76.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.74%
EPS NY rev (1m)3%
EPS NY rev (3m)17.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.48%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)6.1%
Valuation
Industry RankSector Rank
PE 42.29
Fwd PE 21.19
P/S 9.26
P/FCF 43.09
P/OCF 37.2
P/B 13.54
P/tB 32.89
EV/EBITDA 31.42
EPS(TTM)6.93
EY2.36%
EPS(NY)13.83
Fwd EY4.72%
FCF(TTM)6.8
FCFY2.32%
OCF(TTM)7.88
OCFY2.69%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.13
PEG (5Y)2.54
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 9.63
F-Score7
WACC8.65%
ROIC/WACC2.62
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 Year32.29%
Revenue Next 2Y29.27%
Revenue Next 3Y25.24%
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.


Can you provide the profitability details for WESTERN DIGITAL CORP?

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


Can you provide the financial health for WDC stock?

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


How sustainable is the dividend of WESTERN DIGITAL CORP (WDC) stock?

The dividend rating of WESTERN DIGITAL CORP (WDC) is 3 / 10 and the dividend payout ratio is 3.51%.