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Market Cap

US$22.0b

Last Updated

2021/05/09 22:39 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential and good 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 +/- 7% a week.

Volatility Over Time: WDC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

WDC

-0.7%

US Tech

0.2%

US Market


1 Year Return

62.1%

WDC

69.5%

US Tech

49.9%

US Market

Return vs Industry: WDC underperformed the US Tech industry which returned 69.5% over the past year.

Return vs Market: WDC exceeded the US Market which returned 49.9% over the past year.


Shareholder returns

WDCIndustryMarket
7 Day1.4%-0.7%0.2%
30 Day-1.8%-1.7%1.5%
90 Day15.3%-4.0%3.3%
1 Year62.1%62.1%70.7%69.5%52.4%49.9%
3 Year-1.4%-9.1%167.8%157.9%63.7%53.4%
5 Year131.8%102.2%445.4%397.2%130.6%104.9%

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?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDC ($71.65) is trading below our estimate of fair value ($98.46)

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 (62.6x) compared to the US Tech industry average (23x).

PE vs Market: WDC is poor value based on its PE Ratio (62.6x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: WDC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WDC is good value based on its PB Ratio (2.2x) compared to the US Tech industry average (2.7x).


Future Growth

How is Western Digital forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

89.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDC's forecast earnings growth (89.3% per year) is above the savings rate (2%).

Earnings vs Market: WDC's earnings (89.3% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: WDC's revenue (16.1% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: WDC's revenue (16.1% 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 (22.7%)


Past Performance

How has Western Digital performed over the past 5 years?

-24.9%

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 24.9% 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 (1.8%).


Return on Equity

High ROE: WDC's Return on Equity (3.5%) is considered low.


Financial Health

How is Western Digital's financial position?


Financial Position Analysis

Short Term Liabilities: WDC's short term assets ($9.0B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: WDC's short term assets ($9.0B) do not cover its long term liabilities ($11.0B).


Debt to Equity History and Analysis

Debt Level: WDC's debt to equity ratio (90.7%) is considered high.

Reducing Debt: WDC's debt to equity ratio has increased from 26.2% to 90.7% 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 (2.2x coverage).


Balance Sheet


Dividend

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

0.52%

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?

3.3yrs

Average management tenure


CEO

David Goeckeler (58 yo)

1.17yrs

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 ($USD35.72M) is above average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

Experienced Management: WDC's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: WDC's board of directors are not considered experienced ( 2.5 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 2.5%.


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$21.957b
  • Shares outstanding: 306.45m
  • Website: https://www.westerndigital.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/09 22:39
End of Day Share Price2021/05/07 00:00
Earnings2021/04/02
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.