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Western Digital

Nasdaq:WDC
Snowflake Description

Good value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WDC
Nasdaq
$15B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions worldwide. The last earnings update was 70 days ago. More info.


Add to Portfolio Compare Print
  • Western Digital has significant price volatility in the past 3 months.
WDC Share Price and Events
7 Day Returns
0%
NasdaqGS:WDC
2.6%
US Tech
1.1%
US Market
1 Year Returns
-34.8%
NasdaqGS:WDC
5%
US Tech
4.7%
US Market
WDC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Western Digital (WDC) 0% 41.7% -5.4% -34.8% 0.6% -48.6%
US Tech 2.6% 6.8% 1.9% 5% 90.5% 92.7%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • WDC underperformed the Tech industry which returned 5% over the past year.
  • WDC underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
WDC
Industry
5yr Volatility vs Market
Related Companies

WDC Value

 Is Western Digital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Western Digital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Western Digital.

NasdaqGS:WDC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 28 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WDC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.127 (1 + (1- 21%) (70.16%))
1.504
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.504 * 5.96%)
11.69%

Discounted Cash Flow Calculation for NasdaqGS:WDC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Western Digital is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WDC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.69%)
2020 1,569.25 Analyst x4 1,404.98
2021 2,010.00 Analyst x1 1,611.21
2022 2,373.21 Est @ 18.07% 1,703.22
2023 2,692.83 Est @ 13.47% 1,730.31
2024 2,968.76 Est @ 10.25% 1,707.92
2025 3,206.01 Est @ 7.99% 1,651.34
2026 3,411.62 Est @ 6.41% 1,573.29
2027 3,592.71 Est @ 5.31% 1,483.37
2028 3,755.63 Est @ 4.53% 1,388.32
2029 3,905.61 Est @ 3.99% 1,292.63
Present value of next 10 years cash flows $15,546.61
NasdaqGS:WDC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,905.61 × (1 + 2.73%) ÷ (11.69% – 2.73%)
$44,770.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $44,770.14 ÷ (1 + 11.69%)10
$14,817.45
NasdaqGS:WDC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $15,546.61 + $14,817.45
$30,364.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,364.06 / 293.00
$103.63
NasdaqGS:WDC Discount to Share Price
Calculation Result
Value per share (USD) From above. $103.63
Current discount Discount to share price of $51.49
= -1 x ($51.49 - $103.63) / $103.63
50.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Western Digital is available for.
Intrinsic value
>50%
Share price is $51.49 vs Future cash flow value of $103.63
Current Discount Checks
For Western Digital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Western Digital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Western Digital's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Western Digital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Western Digital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WDC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $0.68
NasdaqGS:WDC Share Price ** NasdaqGS (2019-07-16) in USD $51.49
United States of America Tech Industry PE Ratio Median Figure of 14 Publicly-Listed Tech Companies 18.04x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Western Digital.

NasdaqGS:WDC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WDC Share Price ÷ EPS (both in USD)

= 51.49 ÷ 0.68

75.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Digital is overvalued based on earnings compared to the US Tech industry average.
  • Western Digital is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Western Digital's expected growth come at a high price?
Raw Data
NasdaqGS:WDC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 75.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts
144.9%per year
United States of America Tech Industry PEG Ratio Median Figure of 8 Publicly-Listed Tech Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:WDC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 75.88x ÷ 144.9%

0.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Digital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Western Digital's assets?
Raw Data
NasdaqGS:WDC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $34.86
NasdaqGS:WDC Share Price * NasdaqGS (2019-07-16) in USD $51.49
United States of America Tech Industry PB Ratio Median Figure of 33 Publicly-Listed Tech Companies 1.64x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:WDC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WDC Share Price ÷ Book Value per Share (both in USD)

= 51.49 ÷ 34.86

1.48x

* Primary Listing of Western Digital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Digital is good value based on assets compared to the US Tech industry average.
X
Value checks
We assess Western Digital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. Western Digital has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WDC Future Performance

 How is Western Digital expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
144.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Western Digital expected to grow at an attractive rate?
  • Western Digital's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Western Digital's earnings growth is expected to exceed the United States of America market average.
  • Western Digital's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WDC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WDC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts 144.9%
NasdaqGS:WDC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 28 Analysts 2.1%
United States of America Tech Industry Earnings Growth Rate Market Cap Weighted Average 6%
United States of America Tech Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WDC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WDC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 17,843 2,365 894 11
2020-06-30 16,136 2,668 -85 28
2019-06-30 16,556 1,919 -904 29
NasdaqGS:WDC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-29 18,052 2,241 199
2018-12-28 19,391 3,064 841
2018-09-28 20,494 3,777 505
2018-06-29 20,647 4,205 675
2018-03-30 20,372 4,281 199
2017-12-29 20,008 4,252 386
2017-09-29 19,560 4,130 1,444
2017-06-30 19,093 3,437 397
2017-03-31 17,746 2,853 -249
2016-12-30 15,919 2,340 -423
2016-09-30 14,348 1,878 -407
2016-07-01 12,994 1,983 242
2016-04-01 12,690 2,116 828

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Western Digital's earnings are expected to grow significantly at over 20% yearly.
  • Western Digital's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WDC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below

All data from Western Digital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WDC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 4.42 6.82 2.53 3.00
2020-06-30 -0.44 2.39 -2.41 10.00
2019-06-30 -2.96 -1.48 -3.56 10.00
NasdaqGS:WDC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-29 0.68
2018-12-28 2.85
2018-09-28 1.70
2018-06-29 2.27
2018-03-30 0.68
2017-12-29 1.32
2017-09-29 4.97
2017-06-30 1.38
2017-03-31 -0.89
2016-12-30 -1.59
2016-09-30 -1.61
2016-07-01 1.01
2016-04-01 3.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Western Digital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Western Digital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Western Digital has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WDC Past Performance

  How has Western Digital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Western Digital's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Western Digital's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Western Digital's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Western Digital's 1-year earnings growth is negative, it can't be compared to the US Tech industry average.
Earnings and Revenue History
Western Digital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Western Digital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WDC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 18,052.00 199.00 1,370.00 2,236.00
2018-12-28 19,391.00 841.00 1,393.00 2,294.00
2018-09-28 20,494.00 505.00 1,465.00 2,384.00
2018-06-29 20,647.00 675.00 1,473.00 2,400.00
2018-03-30 20,372.00 199.00 1,466.00 2,427.00
2017-12-29 20,008.00 386.00 1,436.00 2,438.00
2017-09-29 19,560.00 1,444.00 1,413.00 2,394.00
2017-06-30 19,093.00 397.00 1,445.00 2,441.00
2017-03-31 17,746.00 -249.00 1,347.00 2,325.00
2016-12-30 15,919.00 -423.00 1,167.00 2,071.00
2016-09-30 14,348.00 -407.00 1,048.00 1,875.00
2016-07-01 12,994.00 242.00 997.00 1,627.00
2016-04-01 12,690.00 828.00 824.00 1,514.00
2016-01-01 13,418.00 1,138.00 857.00 1,557.00
2015-10-02 13,989.00 1,325.00 782.00 1,594.00
2015-07-03 14,572.00 1,465.00 788.00 1,646.00
2015-04-03 15,032.00 1,562.00 785.00 1,691.00
2015-01-02 15,185.00 1,553.00 787.00 1,707.00
2014-10-03 15,269.00 1,545.00 849.00 1,697.00
2014-06-27 15,130.00 1,617.00 826.00 1,661.00
2014-03-28 15,207.00 1,035.00 804.00 1,637.00
2013-12-27 15,268.00 1,051.00 788.00 1,615.00
2013-09-27 15,120.00 956.00 724.00 1,577.00
2013-06-28 15,351.00 980.00 706.00 1,572.00
2013-03-29 16,377.00 1,990.00 704.00 1,576.00
2012-12-28 15,648.00 2,082.00 674.00 1,445.00
2012-09-28 13,819.00 1,892.00 608.00 1,258.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Western Digital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Western Digital used its assets less efficiently than the US Tech industry average last year based on Return on Assets.
  • Western Digital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Western Digital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Western Digital has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WDC Health

 How is Western Digital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Western Digital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Western Digital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Western Digital's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Western Digital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Western Digital Company Filings, last reported 3 months ago.

NasdaqGS:WDC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 10,214.00 10,585.00 3,697.00
2018-12-28 10,912.00 10,614.00 4,036.00
2018-09-28 11,375.00 11,143.00 4,670.00
2018-06-29 11,531.00 11,172.00 5,044.00
2018-03-30 11,300.00 11,200.00 4,997.00
2017-12-29 11,272.00 12,051.00 6,303.00
2017-09-29 12,059.00 13,131.00 6,921.00
2017-06-30 11,418.00 13,152.00 6,378.00
2017-03-31 11,031.00 13,088.00 5,677.00
2016-12-30 10,732.00 13,073.00 5,101.00
2016-09-30 10,775.00 13,133.00 4,325.00
2016-07-01 11,145.00 16,994.00 8,378.00
2016-04-01 9,609.00 2,203.00 6,033.00
2016-01-01 9,557.00 2,505.00 5,860.00
2015-10-02 9,336.00 2,536.00 5,428.00
2015-07-03 9,219.00 2,556.00 5,286.00
2015-04-03 9,226.00 2,344.00 5,040.00
2015-01-02 9,082.00 2,375.00 5,143.00
2014-10-03 8,963.00 2,406.00 5,381.00
2014-06-27 8,842.00 2,438.00 5,088.00
2014-03-28 8,768.00 2,469.00 4,865.00
2013-12-27 8,579.00 2,340.00 4,655.00
2013-09-27 8,253.00 2,398.00 4,869.00
2013-06-28 7,893.00 1,955.00 4,309.00
2013-03-29 8,423.00 2,013.00 4,060.00
2012-12-28 8,247.00 2,128.00 3,816.00
2012-09-28 8,037.00 2,128.00 3,537.00
  • Western Digital's level of debt (103.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.1% vs 103.6% today).
  • Debt is well covered by operating cash flow (21.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Western Digital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Western Digital has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WDC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.88%
Current annual income from Western Digital dividends. Estimated to be 3.92% next year.
If you bought $2,000 of Western Digital shares you are expected to receive $78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Western Digital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Western Digital's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WDC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
United States of America Tech Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WDC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 2.04 6.00
2020-06-30 2.01 13.00
2019-06-30 2.00 13.00
NasdaqGS:WDC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 2.000 4.637
2019-02-14 2.000 4.004
2019-02-05 2.000 4.247
2019-01-24 2.000 4.503
2018-08-02 2.000 4.092
2018-05-02 2.000 2.510
2018-01-29 2.000 2.237
2017-11-02 2.000 2.371
2017-08-03 2.000 2.321
2017-05-03 2.000 2.230
2017-02-02 2.000 2.512
2016-11-04 2.000 2.989
2016-08-04 2.000 3.863
2016-05-04 2.000 4.419
2016-02-11 2.000 4.460
2015-11-03 2.000 3.609
2015-08-04 2.000 2.566
2015-05-05 2.000 2.285
2015-02-04 2.000 1.997
2014-11-04 1.600 1.530
2014-08-05 1.600 1.653
2014-05-15 1.600 1.719
2014-02-07 1.200 1.374
2013-11-14 1.200 1.474
2013-09-20 1.000 1.464
2013-05-16 1.000 1.555
2013-02-14 1.000 1.962
2012-12-11 1.000 2.272
2012-09-13 1.000 2.755

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Western Digital has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Western Digital only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Western Digital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Western Digital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Western Digital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Western Digital has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WDC Management

 What is the CEO of Western Digital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Milligan
COMPENSATION $19,738,381
AGE 56
TENURE AS CEO 6.5 years
CEO Bio

Mr. Stephen D. Milligan, also known as Steve, has been the Chief Executive Officer of Western Digital Corporation since January 2, 2013 and served as its President from January 1, 2013 to October 18, 2015. Mr. Milligan has more than 30 years of executive operational and financial leadership experience. Mr. Milligan rejoined Western Digital Corporation in March 2012 as President following its acquisition of HGST, Inc. where he served as the Chief Executive Officer from February 2009 to March 2012. He served as President of Western Digital Corporation from March 7, 2012 to October 18, 2015 and its Chief Financial Officer since January 29, 2004 until September 2007. Mr. Milligan served as the Chief Executive Officer and President of Viviti Technologies Ltd. He served as Senior Vice President of Western Digital Corp. on January 29, 2004 and its Vice President of Finance since December 11, 2002 until 2007. Before Western Digital, he worked for Dell Inc. from 1997 to 2002 in financial and accounting roles of increasing responsibility. He served Dell in a variety of finance roles, as Controller for the Dell Financial Services business. He served as Dell's Corporate Assistant Controller, European Controller, northern European finance Director and Director of finance for the Americas business. He held the position of senior manager for Price Waterhouse, where he spent 12 years. Mr. Milligan has been a Director of Western Digital Corporation since January 2, 2013 and serves as Chief Executive Officer at Western Digital Technologies, Inc. He has been an Director of Autodesk, Inc. since December 13, 2018. He has been an Independent Director of Ross Stores Inc. since January 23, 2015. In November 1985, he received the Elijah Watt Sells Award, which recognizes Certified Public Accountant candidates with the highest marks received when taking the Uniform CPA Examination. Mr. Milligan holds a bachelor's degree in accounting from The Ohio State University in 1985.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Western Digital management team in years:

3.2
Average Tenure
54.5
Average Age
  • The tenure for the Western Digital management team is about average.
Management Team

Steve Milligan

TITLE
CEO & Director
COMPENSATION
$20M
AGE
56
TENURE
6.5 yrs

Mike Cordano

TITLE
President & COO
COMPENSATION
$9M
AGE
55
TENURE
3.8 yrs

Martin Fink

TITLE
CTO & Executive VP
COMPENSATION
$4M
AGE
54
TENURE
2.5 yrs

Siva Sivaram

TITLE
Executive Vice President of Silicon Technology & Manufacturing
COMPENSATION
$6M
AGE
59
TENURE
3.2 yrs

Mark Long

TITLE
COMPENSATION
$6M
AGE
52

Bob Eulau

TITLE
Executive VP & CFO
AGE
57
TENURE
0.2 yrs

C. Wesley Scott

TITLE
Chief Investment Officer

T. Peter Andrew

TITLE
Vice President of Investor Relations

Michael Ray

TITLE
Chief Legal Officer
COMPENSATION
$5M
AGE
51
TENURE
8.8 yrs

Dave Tang

TITLE
Senior Vice President of Corporate Marketing
AGE
54
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Western Digital board of directors in years:

4.1
Average Tenure
61.5
Average Age
  • The tenure for the Western Digital board of directors is about average.
Board of Directors

Matt Massengill

TITLE
Independent Chairman
COMPENSATION
$465K
AGE
58
TENURE
3.7 yrs

Steve Milligan

TITLE
CEO & Director
COMPENSATION
$20M
AGE
56
TENURE
6.5 yrs

Henry DeNero

TITLE
Independent Director
COMPENSATION
$339K
AGE
73
TENURE
19.1 yrs

Len Lauer

TITLE
Lead Independent Director
COMPENSATION
$395K
AGE
62
TENURE
3.7 yrs

Kath Cote

TITLE
Independent Director
COMPENSATION
$337K
AGE
70
TENURE
18.5 yrs

Michael Lambert

TITLE
Independent Director
COMPENSATION
$350K
AGE
72
TENURE
16.9 yrs

Martin Cole

TITLE
Independent Director
COMPENSATION
$340K
AGE
63
TENURE
4.6 yrs

Tunç Doluca

TITLE
Independent Director
AGE
61
TENURE
0.9 yrs

Kimberly Alexy

TITLE
Director
AGE
49
TENURE
0.7 yrs

Stephanie Streeter

TITLE
Director
AGE
61
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Western Digital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Western Digital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WDC News

Simply Wall St News

A Rising Share Price Has Us Looking Closely At Western Digital Corporation's (NASDAQ:WDC) P/E Ratio

NasdaqGS:WDC Price Estimation Relative to Market, July 9th 2019 That means that the market expects Western Digital will outperform other companies in its industry. … How Does Western Digital's Debt Impact Its P/E Ratio? … The Bottom Line On Western Digital's P/E Ratio With a P/E ratio of 73.5, Western Digital is expected to grow earnings very strongly in the years to come.

Simply Wall St -

How Do Western Digital Corporation’s (NASDAQ:WDC) Returns On Capital Compare To Peers?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Western Digital: 0.068 = US$1.5b ÷ (US$27b - US$4.2b) (Based on the trailing twelve months to March 2019.) So, Western Digital has an ROCE of 6.8%. … Do Western Digital's Current Liabilities Skew Its ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Should You Be Tempted To Sell Western Digital Corporation (NASDAQ:WDC) Because Of Its P/E Ratio?

Check out our latest analysis for Western Digital How Do I Calculate Western Digital's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Western Digital: P/E of 65.77 = $44.63 ÷ $0.68 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Verdict On Western Digital's P/E Ratio With a P/E ratio of 65.8, Western Digital is expected to grow earnings very strongly in the years to come.

Simply Wall St -

Could Western Digital Corporation's (NASDAQ:WDC) Investor Composition Influence The Stock Price?

We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about WDC

Simply Wall St -

Should You Be Worried About Western Digital Corporation's (NASDAQ:WDC) 7.7% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.077 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

When Should You Buy Western Digital Corporation (NASDAQ:WDC)?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Western Digital Corporation (NASDAQ:WDC): Time For A Financial Health Check

Investors pursuing a solid, dependable stock investment can often be led to Western Digital Corporation (NASDAQ:WDC), a large-cap worth US$14b. … Today we will look at Western Digital’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … See our latest analysis for Western Digital

Simply Wall St -

Is Western Digital Corporation's (NASDAQ:WDC) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … According to our data, Western Digital Corporation has a market capitalization of US$14b, and pays its CEO total annual compensation worth US$20m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m.

Simply Wall St -

Did You Manage To Avoid Western Digital's 42% Share Price Drop?

While not a mind-blowing move, it is good to see that the Western Digital Corporation (NASDAQ:WDC) share price has gained 22% in the last three months. … In fact, the price has declined 42% in a year, falling short of the returns you could get by investing in an index fund. … Even though the Western Digital share price is down over the year, its EPS actually improved.

Simply Wall St -

Why I Like Western Digital Corporation (NASDAQ:WDC)

Help shape the future of investing tools and receive a $20 prize! … I've been keeping an eye on Western Digital Corporation (NASDAQ:WDC) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe WDC has a lot to offer.

Simply Wall St -

WDC Company Info

Description

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions worldwide. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook PCs, security surveillance systems, gaming consoles, and set top boxes; flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, IoT, industrial, and connected home applications; flash-based memory wafers; and embedded storage solutions and iNAND embedded flash products, such as multi-chip package solutions. The company also provides data center devices and solutions comprising enterprise helium hard drives; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; data center solutions, including HDDs and drive configurations for use in data storage systems and tiered storage models; system solutions that offer petabyte scalable capacity; and data storage platforms and systems. In addition, it offers client solution, such as external HDD storage products in mobile and desktop form; client SSDs; removable cards used in consumer devices comprising mobile phones, tablets, imaging systems, still cameras, action video cameras, and security surveillance systems; universal serial bus flash drives used in the computing and consumer markets; and wireless drive products for in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music and documents to tablets, smartphones, and personal computers (PCs). The company sells its products under the HGST, SanDisk, and WD brands to original equipment manufacturers, distributors, resellers, cloud infrastructure players, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

Details
Name: Western Digital Corporation
WDC
Exchange: NasdaqGS
Founded: 1970
$15,086,451,778
292,997,704
Website: http://www.wdc.com
Address: Western Digital Corporation
5601 Great Oaks Parkway,
San Jose,
California, 95119,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WDC Common Stock Nasdaq Global Select US USD 26. Jan 1973
DB WDC Common Stock Deutsche Boerse AG DE EUR 26. Jan 1973
LSE 0QZF Common Stock London Stock Exchange GB USD 26. Jan 1973
SWX WDC Common Stock SIX Swiss Exchange CH CHF 26. Jan 1973
WBAG WDC Common Stock Wiener Boerse AG AT EUR 26. Jan 1973
BMV WDC * Common Stock Bolsa Mexicana de Valores MX MXN 26. Jan 1973
Number of employees
Current staff
Staff numbers
71,600
Western Digital employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:48
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/29
Last annual earnings reported: 2018/06/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.