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WDC

Western Digital NasdaqGS:WDC Stock Report

Last Price

US$57.34

Market Cap

US$18.0b

7D

-0.9%

1Y

-22.4%

Updated

24 May, 2022

Data

Company Financials +
WDC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

WDC Stock Overview

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally.

Western Digital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Western Digital
Historical stock prices
Current Share PriceUS$57.34
52 Week HighUS$78.19
52 Week LowUS$43.85
Beta1.42
1 Month Change15.93%
3 Month Change7.34%
1 Year Change-22.42%
3 Year Change39.92%
5 Year Change-36.30%
Change since IPO1,229.62%

Recent News & Updates

May 09

Western Digital - Splitting The Businesses Will Not Rescue The Stock

We rate WDC a sell primarily due to continued unfavorable risk-reward dynamics through 2H22. No significant catalysts for WDC into 2H22, as we expect demand destruction in smartphones and PCs due to inflationary pressures and rising interest rates. We expect HDD ASP to improve due to higher demand for large capacity drives from the cloud, offset by NAND pricing pressure due to lower demand from PCs and smartphones. While we are optimistic about the long-term growth of the storage sector, we expect WDC to have limited upside potential through 2H22. Elliott Management forced split could be hair-raising overall. But the stock could see some initial upside followed by sustained slide.

Shareholder Returns

WDCUS TechUS Market
7D-0.9%-1.7%-0.5%
1Y-22.4%11.1%-12.3%

Return vs Industry: WDC underperformed the US Tech industry which returned 8.3% over the past year.

Return vs Market: WDC underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is WDC's price volatile compared to industry and market?
WDC volatility
WDC Average Weekly Movement7.5%
Tech Industry Average Movement8.8%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
197065,600David Goeckelerhttps://www.westerndigital.com

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. 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), smart video 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; and flash-based memory wafers. 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 for data storage systems and tiered storage models; and data storage platforms.

Western Digital Fundamentals Summary

How do Western Digital's earnings and revenue compare to its market cap?
WDC fundamental statistics
Market CapUS$17.96b
Earnings (TTM)US$1.82b
Revenue (TTM)US$19.19b

9.9x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WDC income statement (TTM)
RevenueUS$19.19b
Cost of RevenueUS$12.90b
Gross ProfitUS$6.28b
Other ExpensesUS$4.46b
EarningsUS$1.82b

Last Reported Earnings

Apr 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.81
Gross Margin32.74%
Net Profit Margin9.49%
Debt/Equity Ratio59.9%

How did WDC perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


49.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WDC ($57.34) is trading below our estimate of fair value ($112.98)

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


Price To Earnings Ratio

PE vs Industry: WDC is good value based on its PE Ratio (9.9x) compared to the US Tech industry average (14.7x).

PE vs Market: WDC is good value based on its PE Ratio (9.9x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: WDC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WDC is overvalued based on its PB Ratio (1.5x) compared to the US Tech industry average (1.3x).


Future Growth

How is Western Digital forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.06%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDC's earnings are forecast to decline over the next 3 years (-0.06% per year).

Earnings vs Market: WDC's earnings are forecast to decline over the next 3 years (-0.06% per year).

High Growth Earnings: WDC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WDC's revenue (5.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: WDC's revenue (5.1% 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 (22.6%)


Past Performance

How has Western Digital performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WDC has high quality earnings.

Growing Profit Margin: WDC's current net profit margins (9.5%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: WDC has become profitable over the past 5 years, growing earnings by 20% per year.

Accelerating Growth: WDC's earnings growth over the past year (427.8%) exceeds its 5-year average (20% per year).

Earnings vs Industry: WDC earnings growth over the past year (427.8%) exceeded the Tech industry 86%.


Return on Equity

High ROE: WDC's Return on Equity (15.2%) is considered low.


Financial Health

How is Western Digital's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WDC's short term assets ($9.2B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: WDC's short term assets ($9.2B) do not cover its long term liabilities ($9.3B).


Debt to Equity History and Analysis

Debt Level: WDC's net debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: WDC's debt to equity ratio has reduced from 118.6% to 59.9% over the past 5 years.

Debt Coverage: WDC's debt is well covered by operating cash flow (35.9%).

Interest Coverage: WDC's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.87%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WDC has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure


CEO

David Goeckeler (59 yo)

2.17yrs

Tenure

US$17,093,364

Compensation

Mr. David V. Goeckeler serves as Independent Outside Director at Automatic Data Processing, Inc since February 14, 2022. He serves as the Chief Executive Officer and Director of Western Digital Corporation...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD17.09M) is about average for companies of similar size in the US market ($USD13.34M).

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


Leadership Team

Experienced Management: WDC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: WDC's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Western Digital Corporation's 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
  • Implied Market Cap: US$17.957b
  • Shares outstanding: 313.17m
  • Website: https://www.westerndigital.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/23 00:00
Earnings2022/04/01
Annual Earnings2021/07/02


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.