NasdaqGS:WDC

Stock Analysis Report

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Executive Summary

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions. More Details


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Western Digital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WDC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-4.6%

WDC

-8.5%

US Tech

-4.0%

US Market


1 Year Return

45.3%

WDC

75.0%

US Tech

46.6%

US Market

Return vs Industry: WDC underperformed the US Tech industry which returned 75% over the past year.

Return vs Market: WDC underperformed the US Market which returned 46.6% over the past year.


Shareholder returns

WDCIndustryMarket
7 Day-4.6%-8.5%-4.0%
30 Day15.3%-13.8%-4.1%
90 Day31.4%-4.9%3.3%
1 Year47.2%45.3%76.6%75.0%49.8%46.6%
3 Year-27.0%-33.1%146.4%136.3%47.8%38.4%
5 Year65.6%42.9%352.2%308.8%116.6%92.6%

Long-Term Price Volatility Vs. Market

How volatile is Western Digital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Western Digital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDC ($68.86) is trading below our estimate of fair value ($171.26)

Significantly Below Fair Value: WDC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WDC is poor value based on its PE Ratio (124.3x) compared to the US Tech industry average (28.9x).

PE vs Market: WDC is poor value based on its PE Ratio (124.3x) compared to the US market (21.8x).


Price to Earnings Growth Ratio

PEG Ratio: WDC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: WDC is good value based on its PB Ratio (2.1x) compared to the US Tech industry average (3.8x).


Next Steps

Future Growth

How is Western Digital forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

109.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDC's forecast earnings growth (109.6% per year) is above the savings rate (2%).

Earnings vs Market: WDC's earnings (109.6% per year) are forecast to grow faster than the US market (19% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WDC's revenue (12.5% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: WDC's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WDC's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Western Digital performed over the past 5 years?

-35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDC has high quality earnings.

Growing Profit Margin: WDC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WDC's earnings have declined by 35.9% per year over the past 5 years.

Accelerating Growth: WDC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WDC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (-21.6%).


Return on Equity

High ROE: WDC's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is Western Digital's financial position?


Financial Position Analysis

Short Term Liabilities: WDC's short term assets ($9.1B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: WDC's short term assets ($9.1B) do not cover its long term liabilities ($11.2B).


Debt to Equity History and Analysis

Debt Level: WDC's debt to equity ratio (94%) is considered high.

Reducing Debt: WDC's debt to equity ratio has increased from 26.1% to 94% over the past 5 years.

Debt Coverage: WDC's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: WDC's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Western Digital current dividend yield, its reliability and sustainability?

0.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WDC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WDC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WDC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WDC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WDC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WDC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

David Goeckeler (58 yo)

1

Tenure

US$35,723,376

Compensation

Mr. David V. Goeckeler serves as the Chief Executive Officer and Director of Western Digital Corporation since joining in March 9, 2020. Mr. Goeckeler served as Executive Vice President and General Manager...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD35.72M) is above average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Goeckeler
CEO & Director1yrUS$35.72mno data
Robert Eulau
Executive VP & CFO1.83yrsUS$6.44m0.0043%
$ 912.7k
Srinivasan Sivaram
President of Technology & Strategy4.83yrsUS$6.19mno data
Michael Ray
Chief Legal Officer10.42yrsUS$5.31m0.020%
$ 4.2m
Lori Sundberg
Executive VP & Chief Human Resources Officer3.08yrsUS$3.72m0.022%
$ 4.7m
Sean Hunkler
Executive Vice President of Global Operations0.58yrno data0.053%
$ 11.2m
C. Wesley Scott
Chief Investment Officerno datano datano data
Gene Zamiska
Vice President of Global Accounting & Chief Accounting Officer1.58yrsno data0.0090%
$ 1.9m
T. Peter Andrew
Vice President of Investor Relationsno datano datano data
David Tang
Senior Vice President of Corporate Marketing3.92yrsno datano data
Scott Davis
Senior Vice President of Worldwide Salesno datano datano data
James Welsh
Senior VP & GM of Client Solutions16.17yrsUS$2.10mno data

3.1yrs

Average Tenure

58yo

Average Age

Experienced Management: WDC's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Goeckeler
CEO & Director1yrUS$35.72mno data
Tunç Doluca
Independent Director2.58yrsUS$327.46k0.0035%
$ 746.2k
Matthew Massengill
Independent Chairman5.33yrsUS$474.99k0.0084%
$ 1.8m
Kathleen Cote
Lead Independent Directorno dataUS$365.22k0.011%
$ 2.4m
Stephanie Streeter
Independent Director2.33yrsUS$359.86k0.0032%
$ 676.6k
Martin Cole
Independent Director6.25yrsUS$370.68k0.0073%
$ 1.5m
Kimberly Alexy
Independent Director2.33yrsUS$370.02k0.0032%
$ 676.6k
Paula Price
Independent Director0.75yrUS$123.94k0.00064%
$ 134.9k

2.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: WDC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

Western Digital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Western Digital Corporation
  • Ticker: WDC
  • Exchange: NasdaqGS
  • Founded: 1970
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$21.078b
  • Shares outstanding: 306.10m
  • Website: https://www.westerndigital.com

Number of Employees


Location

  • Western Digital Corporation
  • 5601 Great Oaks Parkway
  • San Jose
  • California
  • 95119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1973
WDCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1973
WDCXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1973
WDC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1973
WDCSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1973
0QZFLSE (London Stock Exchange)YesCommon StockGBUSDJan 1973
WDCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1973
WDCETLX (Eurotlx)YesCommon StockITEURJan 1973
W1DC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJan 2020

Biography

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing dev...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/09 00:29
End of Day Share Price2021/03/08 00:00
Earnings2021/01/01
Annual Earnings2020/07/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.