212.14 USD
+11.68 (+5.83%)
211 USD
-1.14 (-0.54%)
We assign a fundamental rating of 5 out of 10 to WDC. WDC was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While WDC has a great profitability rating, there are some minor concerns on its financial health. WDC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WDC had positive earnings in the past year.
In the past year WDC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WDC reported negative net income in multiple 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
The Return On Assets of WDC (17.50%) is better than 91.43% of its industry peers.
WDC has a better Return On Equity (41.08%) than 94.29% 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
WDC's Profit Margin of 20.94% is amongst the best of the industry. WDC outperforms 97.14% of its industry peers.
In the last couple of years the Profit Margin of WDC has grown nicely.
WDC has a Operating Margin of 23.42%. This is amongst the best in the industry. WDC outperforms 97.14% of its industry peers.
WDC's Operating Margin has improved in the last couple of years.
The Gross Margin of WDC (39.34%) is better than 77.14% of its industry peers.
In the last couple of years the Gross Margin of WDC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WDC is creating value.
WDC has more shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 6.75 indicates that WDC is not in any danger for bankruptcy at the moment.
WDC has a Altman-Z score of 6.75. This is amongst the best in the industry. WDC outperforms 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.
Looking at the Debt to FCF ratio, with a value of 2.33, WDC is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that WDC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, WDC is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 6.75 |
ROIC/WACC2.84
WACC8.51%
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.
Looking at the Current ratio, with a value of 1.21, WDC is in line with its industry, outperforming 48.57% of the companies in the same industry.
WDC has a Quick Ratio of 1.21. This is a bad value and indicates that WDC is not financially healthy enough and could expect problems in meeting its short term obligations.
WDC has a Quick ratio (0.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.91% over the past year.
The Earnings Per Share has been growing by 16.66% on average over the past years. This is quite good.
WDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.80%.
The Revenue for WDC have been decreasing by -10.67% on average. This is quite bad
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
WDC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.20% yearly.
Based on estimates for the next years, WDC will show a quite strong growth in Revenue. The Revenue will grow by 12.63% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
WDC is valuated quite expensively with a Price/Earnings ratio of 32.29.
65.71% of the companies in the same industry are more expensive than WDC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, WDC is valued at the same level.
A Price/Forward Earnings ratio of 21.87 indicates a rather expensive valuation of WDC.
WDC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.98. WDC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.29 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
WDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WDC is cheaper than 65.71% of the companies in the same industry.
WDC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WDC is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | 21.54 |
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.
A more expensive valuation may be justified as WDC's earnings are expected to grow with 19.56% in the coming years.
PEG (NY)1.78
PEG (5Y)1.94
EPS Next 2Y21.51%
EPS Next 3Y19.56%
5. Dividend
5.1 Amount
WDC has a yearly dividend return of 0.27%, which is pretty low.
Compared to an average industry Dividend Yield of 0.64, WDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, WDC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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
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%
212.14
+11.68 (+5.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner Change-0.07%
Ins Owners0.3%
Ins Owner Change0.57%
Market Cap72.53B
Revenue(TTM)12.00B
Net Income(TTM)2.51B
Analysts80
Price Target187.73 (-11.51%)
Short Float %9.22%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.13
Dividend Growth(5Y)-42.4%
DP3.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.96%
PT rev (3m)80.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.93%
EPS NY rev (1m)1.37%
EPS NY rev (3m)16.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.5%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)5.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.29 | ||
| Fwd PE | 21.87 | ||
| P/S | 6.04 | ||
| P/FCF | 36.07 | ||
| P/OCF | 30.22 | ||
| P/B | 11.86 | ||
| P/tB | 40.34 | ||
| EV/EBITDA | 21.54 |
EPS(TTM)6.57
EY3.1%
EPS(NY)9.7
Fwd EY4.57%
FCF(TTM)5.88
FCFY2.77%
OCF(TTM)7.02
OCFY3.31%
SpS35.1
BVpS17.89
TBVpS5.26
PEG (NY)1.78
PEG (5Y)1.94
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 | 6.75 |
F-Score7
WACC8.51%
ROIC/WACC2.84
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.
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 5 / 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 3.3%.