WESTERN DIGITAL CORP (WDC) Stock Fundamental Analysis

NASDAQ:WDC • US9581021055

284.11 USD
+2.53 (+0.9%)
At close: Feb 17, 2026
288.5 USD
+4.39 (+1.55%)
Pre-Market: 2/18/2026, 4:59:09 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall WDC gets a fundamental rating of 6 out of 10. We evaluated WDC against 36 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 is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

7

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.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B 4B

1.2 Ratios

  • The Return On Assets of WDC (23.89%) is better than 97.22% of its industry peers.
  • WDC has a better Return On Equity (50.82%) than 91.67% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 22.70%, WDC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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

  • With an excellent Profit Margin value of 34.75%, WDC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • WDC's Profit Margin has improved in the last couple of years.
  • WDC's Operating Margin of 27.93% is amongst the best of the industry. WDC outperforms 97.22% of its industry peers.
  • In the last couple of years the Operating Margin of WDC has grown nicely.
  • With a decent Gross Margin value of 42.72%, WDC is doing good in the industry, outperforming 77.78% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WDC has grown nicely.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • WDC has more shares outstanding than it did 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

  • The Debt to FCF ratio of WDC is 2.02, which is a good value as it means it would take WDC, 2.02 years of fcf income to pay off all of its debts.
  • WDC's Debt to FCF ratio of 2.02 is amongst the best of the industry. WDC outperforms 83.33% of its industry peers.
  • A Debt/Equity ratio of 0.33 indicates that WDC is not too dependend on debt financing.
  • WDC's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. WDC outperforms 58.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.02
Altman-Z N/A
ROIC/WACC2.69
WACC8.45%
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 50.00% 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.
  • With a Quick ratio value of 1.19, WDC perfoms like the industry average, outperforming 58.33% of the companies in the same 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. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.31% 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 strong growth in Revenue. In the last year, the Revenue has grown by 28.14%.
  • 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
  • The Revenue is expected to grow by 16.23% on average over the next years. This is quite good.
EPS Next Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
EPS Next 5Y24.9%
Revenue Next Year30.92%
Revenue Next 2Y26.82%
Revenue Next 3Y23.18%
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 41.00, which means the current valuation is very expensive for WDC.
  • Based on the Price/Earnings ratio, WDC is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of WDC to the average of the S&P500 Index (27.16), we can say WDC is valued expensively.
  • Based on the Price/Forward Earnings ratio of 22.34, the valuation of WDC can be described as rather expensive.
  • WDC's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of WDC to the average of the S&P500 Index (28.10), we can say WDC is valued slightly cheaper.
Industry RankSector Rank
PE 41
Fwd PE 22.34
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 61.11% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WDC indicates a somewhat cheap valuation: WDC is cheaper than 63.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 41.77
EV/EBITDA 28.12
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.
  • A more expensive valuation may be justified as WDC's earnings are expected to grow with 36.37% in the coming years.
PEG (NY)1.23
PEG (5Y)2.46
EPS Next 2Y39.12%
EPS Next 3Y36.37%

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

3

5. Dividend

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 0.65.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 2Y39.12%
EPS Next 3Y36.37%
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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Find the best dividend stocksShow peers with best dividend

WESTERN DIGITAL CORP

NASDAQ:WDC (2/17/2026, 8:00:03 PM)

Premarket: 288.5 +4.39 (+1.55%)

284.11

+2.53 (+0.9%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29
Earnings (Next)04-28
Inst Owners104.48%
Inst Owner Change0.17%
Ins Owners0.3%
Ins Owner Change0.06%
Market Cap96.32B
Revenue(TTM)10.73B
Net Income(TTM)3.73B
Analysts80
Price Target279.7 (-1.55%)
Short Float %9.35%
Short Ratio3.33
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)49%
PT rev (3m)116.75%
EPS NQ rev (1m)21.75%
EPS NQ rev (3m)24%
EPS NY rev (1m)12.82%
EPS NY rev (3m)19.62%
Revenue NQ rev (1m)10.07%
Revenue NQ rev (3m)10.63%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)7.49%
Valuation
Industry RankSector Rank
PE 41
Fwd PE 22.34
P/S 8.97
P/FCF 41.77
P/OCF 36.06
P/B 13.12
P/tB 31.89
EV/EBITDA 28.12
EPS(TTM)6.93
EY2.44%
EPS(NY)12.72
Fwd EY4.48%
FCF(TTM)6.8
FCFY2.39%
OCF(TTM)7.88
OCFY2.77%
SpS31.66
BVpS21.65
TBVpS8.91
PEG (NY)1.23
PEG (5Y)2.46
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 250
Cash Conversion 79.16%
Profit Quality 61.82%
Current Ratio 1.45
Quick Ratio 1.19
Altman-Z N/A
F-Score7
WACC8.45%
ROIC/WACC2.69
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 Y33.27%
EPS Next 2Y39.12%
EPS Next 3Y36.37%
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 Year30.92%
Revenue Next 2Y26.82%
Revenue Next 3Y23.18%
Revenue Next 5Y16.23%
EBIT growth 1Y142.56%
EBIT growth 3Y-6.92%
EBIT growth 5Y37.4%
EBIT Next Year84.38%
EBIT Next 3Y39.22%
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 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 5 / 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 4 / 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%.