NasdaqGS:WDC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential unattractive dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.9%

WDC

8.5%

US Tech

9.4%

US Market


1 Year Return

-13.1%

WDC

27.9%

US Tech

-6.8%

US Market

Return vs Industry: WDC underperformed the US Tech industry which returned 27.9% over the past year.

Return vs Market: WDC underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

WDCIndustryMarket
7 Day17.9%8.5%9.4%
30 Day-0.2%-6.9%-3.9%
90 Day-33.7%-15.3%-16.5%
1 Year-9.4%-13.1%29.8%27.9%-4.8%-6.8%
3 Year-40.2%-46.0%83.0%72.2%23.4%15.2%
5 Year-46.4%-54.7%110.0%89.3%41.3%25.7%

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?

1.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WDC ($45.05) is trading above our estimate of fair value ($26.05)

Significantly Below Fair Value: WDC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WDC is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: WDC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WDC is overvalued based on its PB Ratio (1.4x) compared to the US Tech industry average (1.4x).


Next Steps

Future Growth

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

128.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: WDC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WDC's is expected to become profitable in the next 3 years.

Revenue vs Market: WDC's revenue (8.4% per year) is forecast to grow faster than the US market (6.9% per year).

High Growth Revenue: WDC's revenue (8.4% 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 (20.2%)


Next Steps

Past Performance

How has Western Digital performed over the past 5 years?

-49.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDC is currently unprofitable.

Growing Profit Margin: WDC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WDC is unprofitable, and losses have increased over the past 5 years at a rate of -49% per year.

Accelerating Growth: Unable to compare WDC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WDC is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-0.6%).


Return on Equity

High ROE: WDC has a negative Return on Equity (-12.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is Western Digital's financial position?


Financial Position Analysis

Short Term Liabilities: WDC's short term assets ($8.6B) exceed its short term liabilities ($4.5B).

Long Term Liabilities: WDC's short term assets ($8.6B) do not cover its long term liabilities ($12.0B).


Debt to Equity History and Analysis

Debt Level: WDC's debt to equity ratio (104.8%) is considered high.

Reducing Debt: WDC's debt to equity ratio has increased from 26.1% to 104.8% over the past 5 years.

Debt Coverage: WDC's debt is not well covered by operating cash flow (9%).

Interest Coverage: Insufficient data to determine if WDC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WDC's dividend (4.44%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: WDC's dividend (4.44%) is low compared to the top 25% of dividend payers in the US market (5.12%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WDC has been paying a dividend for less than 10 years.

Growing Dividend: WDC's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: WDC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WDC's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

David Goeckeler (57yo)

0.083

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Eulau
Executive VP & CFO0.92yrUS$2.39mno data
Srinivasan Sivaram
President of Technology & Strategy3.92yrsUS$3.67mno data
Stephen Milligan
Senior Advisor0.083yrUS$12.87m0.14% $19.2m
Martin Fink
0.58yrUS$2.95m0.0088% $1.2m
David Goeckeler
CEO & Director0.083yrno datano data
C. Wesley Scott
Chief Investment Officerno datano datano data
Gene Zamiska
Vice President of Global Accounting & Chief Accounting Officer0.67yrno datano data
T. Peter Andrew
Vice President of Investor Relationsno datano datano data
Michael Ray
Chief Legal Officer9.5yrsUS$4.58m0.017% $2.3m
David Tang
Senior Vice President of Corporate Marketing3yrsno datano data

0.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WDC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Goeckeler
CEO & Director0.083yrno datano data
Tunç Doluca
Independent Director1.67yrsUS$376.50k0.0020% $269.3k
Matthew Massengill
Independent Chairman4.42yrsUS$464.97k0.0066% $891.5k
Kathleen Cote
Independent Director19.25yrsUS$337.48k0.0098% $1.3m
Stephanie Streeter
Independent Director1.42yrsUS$324.61k0.0017% $223.6k
Len Lauer
Lead Independent Director4.42yrsUS$402.47k0.026% $3.5m
Martin Cole
Independent Director5.33yrsUS$339.98k0.0059% $794.5k
Kimberly Alexy
Independent Director1.42yrsUS$317.27k0.0017% $223.6k

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: WDC's board of directors are considered experienced (3 years average tenure).


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 not been meaningfully diluted in the past year.


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$13.467b
  • Shares outstanding: 298.93m
  • 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 worldwide. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook personal computers (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, Internet of Things, industrial, and connected home applications; flash-based memory wafers; and embedded storage solutions and 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 solutions, such as external HDD storage products in mobile and desktop form; client SSDs; removable cards that are used in consumer devices comprising mobile phones, tablets, imaging systems, still and action video cameras, and security surveillance systems; universal serial bus flash drives for use in the computing and consumer markets; and wireless drive products used in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music, and documents to tablets, smartphones, and 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:52
End of Day Share Price2020/04/09 00:00
Earnings2020/01/03
Annual Earnings2019/06/28


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.