| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$59.10 |
| 52 Week High | US$78.19 |
| 52 Week Low | US$43.85 |
| Beta | 1.42 |
| 1 Month Change | 25.00% |
| 3 Month Change | 4.69% |
| 1 Year Change | -17.06% |
| 3 Year Change | 40.08% |
| 5 Year Change | -34.11% |
| Change since IPO | 1,270.44% |
Recent News & Updates
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
| WDC | US Tech | US Market | |
|---|---|---|---|
| 7D | 6.0% | -3.6% | 0.5% |
| 1Y | -17.1% | 11.7% | -11.5% |
Return vs Industry: WDC underperformed the US Tech industry which returned 18.1% over the past year.
Return vs Market: WDC underperformed the US Market which returned -8.1% over the past year.
Price Volatility
| WDC volatility | |
|---|---|
| WDC Average Weekly Movement | 7.5% |
| Tech Industry Average Movement | 8.9% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1970 | 65,600 | David Goeckeler | https://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
| WDC fundamental statistics | |
|---|---|
| Market Cap | US$19.16b |
| Earnings (TTM) | US$1.82b |
| Revenue (TTM) | US$19.19b |
10.2x
P/E Ratio1.0x
P/S RatioIs WDC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WDC income statement (TTM) | |
|---|---|
| Revenue | US$19.19b |
| Cost of Revenue | US$12.90b |
| Gross Profit | US$6.28b |
| Other Expenses | US$4.46b |
| Earnings | US$1.82b |
Last Reported Earnings
Apr 01, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.81 |
| Gross Margin | 32.74% |
| Net Profit Margin | 9.49% |
| Debt/Equity Ratio | 59.9% |
How did WDC perform over the long term?
See historical performance and comparisonValuation
Is Western Digital undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
48.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WDC ($59.1) is trading below our estimate of fair value ($114.16)
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 (10.2x) compared to the US Tech industry average (15.8x).
PE vs Market: WDC is good value based on its PE Ratio (10.2x) compared to the US market (16x).
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
1/6Future 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
5/6Past 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 70.6%.
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
5/6Financial 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
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.85%
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.
Next Steps
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 ($USD13.27M).
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$19.163b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/18 00:00 |
| End of Day Share Price | 2022/05/18 00:00 |
| Earnings | 2022/04/01 |
| Annual Earnings | 2021/07/02 |
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.