WESTERN DIGITAL CORP (WDC)
US9581021055 - Common Stock
WDC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. WDC has a bad profitability rating. Also its financial health evaluation is rather negative. WDC has a correct valuation and a medium growth rate.
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.50%, WDC is in line with its industry, outperforming 46.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.13%, WDC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
WDC's Return On Invested Capital of 4.23% is in line compared to the rest of the industry. WDC outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROIC | 4.23% |
ROA(3y)-1.53%
ROA(5y)-0.49%
ROE(3y)-3.16%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 5.85%, WDC is in line with its industry, outperforming 59.38% of the companies in the same industry.
In the last couple of years the Operating Margin of WDC has declined.
WDC's Gross Margin of 26.30% is in line compared to the rest of the industry. WDC outperforms 43.75% of its industry peers.
In the last couple of years the Gross Margin of WDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% |
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%
2. Health
2.1 Basic Checks
WDC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
WDC has a worse debt/assets ratio than last year.
2.2 Solvency
WDC has an Altman-Z score of 2.38. This is not the best score and indicates that WDC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WDC (2.38) is better than 62.50% of its industry peers.
WDC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, WDC is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.38 |
ROIC/WACC0.41
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.47 indicates that WDC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, WDC perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that WDC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, WDC is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 157.14% over the past year.
WDC shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.88%.
Measured over the past years, WDC shows a decrease in Revenue. The Revenue has been decreasing by -4.73% on average per year.
EPS 1Y (TTM)157.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%201.14%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y-4.73%
Sales Q2Q%48.91%
3.2 Future
Based on estimates for the next years, WDC will show a very strong growth in Earnings Per Share. The EPS will grow by 111.74% on average per year.
The Revenue is expected to grow by 10.22% on average over the next years. This is quite good.
EPS Next Y2097.8%
EPS Next 2Y404.05%
EPS Next 3Y182%
EPS Next 5Y111.74%
Revenue Next Year30.69%
Revenue Next 2Y20.29%
Revenue Next 3Y12.78%
Revenue Next 5Y10.22%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
WDC is valuated rather expensively with a Price/Earnings ratio of 19.87.
Compared to the rest of the industry, the Price/Earnings ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. WDC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 7.06, which indicates a rather cheap valuation of WDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WDC indicates a rather cheap valuation: WDC is cheaper than 90.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (23.40), we can say WDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 7.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WDC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
WDC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WDC's earnings are expected to grow with 182.00% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y404.05%
EPS Next 3Y182%
5. Dividend
5.1 Amount
WDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WESTERN DIGITAL CORP
NASDAQ:WDC (11/15/2024, 8:00:01 PM)
Premarket: 62.8 0 (0%)62.8
-0.42 (-0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 7.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.85% | ||
| PM (TTM) | N/A | ||
| GM | 26.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)157.14%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y2097.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.88%
Revenue growth 3Y-8.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y