NasdaqGS:WDC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with moderate growth potential.

Risks

  • Western Digital has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.1%

NasdaqGS:WDC

-0.5%

US Tech

-1.2%

US Market


1 Year Return

-31.6%

NasdaqGS:WDC

3.5%

US Tech

3.4%

US Market

WDC underperformed the Tech industry which returned 4.6% over the past year.

WDC underperformed the Market in United States of America which returned 3.9% over the past year.


Share holder returns

WDCIndustryMarket
7 Day-5.1%-0.5%-1.2%
30 Day35.1%2.5%1.2%
90 Day-5.3%-1.6%1.7%
1 Year-28.4%-31.6%5.2%3.5%5.7%3.4%
3 Year10.2%0.1%104.9%89.3%45.0%35.5%
5 Year-38.5%-47.2%103.7%84.1%59.3%41.6%

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 based on future cash flows and its price relative to the stock market?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Western Digital is good value based on expected growth next year.


Price Based on Value of Assets

Western Digital is good value based on assets compared to the US Tech industry average.


Next Steps

Future Growth

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

136.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Western Digital's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

Western Digital's earnings are expected to grow significantly at over 20% yearly.

Western Digital's revenue growth is positive but not above the United States of America market average.

Western Digital's earnings growth is expected to exceed the United States of America market average.

Western Digital's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Western Digital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Western Digital performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Western Digital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Western Digital used its assets less efficiently than the US Tech industry average last year based on Return on Assets.


Return on Capital Employed

Western Digital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Western Digital's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

3.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Western Digital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Western Digital's dividend is above the markets top 25% of dividend payers in United States of America (3.74%).

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

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 (2.9x coverage).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Steve Milligan (56yo)

6.5yrs

Tenure

US$19,738,381

Compensation

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. ...


CEO Compensation Analysis

Steve's remuneration is higher than average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

54.5yo

Average Age

The tenure for the Western Digital management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

61.5yo

Average Age

The tenure for the Western Digital board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Siva Sivaram (59yo)

    Executive Vice President of Silicon Technology & Manufacturing

    • Tenure: 3.2yrs
    • Compensation: $6.13m
  • Mike Cordano (55yo)

    President & COO

    • Tenure: 3.8yrs
    • Compensation: $8.51m
  • T. Peter Andrew

    Vice President of Investor Relations

  • Bob Eulau (57yo)

    Executive VP & CFO

    • Tenure: 0.2yrs
  • Michael Ray (51yo)

    Chief Legal Officer

    • Tenure: 8.8yrs
    • Compensation: $4.58m
  • C. Wesley Scott

    Chief Investment Officer

  • Mark Long (52yo)

    • Compensation: $5.65m
  • Martin Fink (54yo)

    CTO & Executive VP

    • Tenure: 2.5yrs
    • Compensation: $3.71m
  • Steve Milligan (56yo)

    CEO & Director

    • Tenure: 6.5yrs
    • Compensation: $19.74m
  • Dave Tang (54yo)

    Senior Vice President of Corporate Marketing

    • Tenure: 2.3yrs

Board Members

  • Martin Cole (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: $339.93k
  • Stephanie Streeter (61yo)

    Director

    • Tenure: 0.7yrs
  • Kimberly Alexy (49yo)

    Director

    • Tenure: 0.7yrs
  • Henry DeNero (73yo)

    Independent Director

    • Tenure: 19.1yrs
    • Compensation: $339.19k
  • Tunç Doluca (61yo)

    Independent Director

    • Tenure: 0.9yrs
  • Len Lauer (62yo)

    Lead Independent Director

    • Tenure: 3.7yrs
    • Compensation: $395.08k
  • Matt Massengill (58yo)

    Independent Chairman

    • Tenure: 3.7yrs
    • Compensation: $464.99k
  • Kath Cote (70yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: $337.43k
  • Michael Lambert (72yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: $349.93k
  • Steve Milligan (56yo)

    CEO & Director

    • Tenure: 6.5yrs
    • Compensation: $19.74m

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$15.371b
  • Shares outstanding: 293.00m
  • Website: Click here

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
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

Biography

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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 23:49
End of Day Share Price2019/07/19 00:00
Earnings2019/03/29
Annual Earnings2018/06/29


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.