Western Digital Corporation
Western Digital Corporation Fundamental Analysis
Western Digital Corporation (WDC.DE) shows strong financial fundamentals with a PE ratio of 26.85, profit margin of 34.86%, and ROE of 63.72%. The company generates $10.4B in annual revenue with moderate year-over-year growth of 5.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WDC.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWDC.DE demonstrates superior asset utilization.
Valuation Score
ModerateWDC.DE shows balanced valuation metrics.
Growth Score
ExcellentWDC.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWDC.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentWDC.DE achieves industry-leading margins.
Key Financial Metrics
Is WDC.DE Expensive or Cheap?
P/E Ratio
WDC.DE trades at 26.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WDC.DE's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Western Digital Corporation at 14.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.59 times EBITDA. This signals the market has high growth expectations.
How Well Does WDC.DE Make Money?
Net Profit Margin
For every $100 in sales, Western Digital Corporation keeps $34.86 as profit after all expenses.
Operating Margin
Core operations generate 27.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $63.72 in profit for every $100 of shareholder equity.
ROA
Western Digital Corporation generates $24.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Western Digital Corporation produces operating cash flow of $2.59B, showing steady but balanced cash generation.
Free Cash Flow
Western Digital Corporation generates strong free cash flow of $2.24B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.76 in free cash annually.
FCF Yield
WDC.DE converts 2.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.64
vs 25 benchmark
ROA
Return on assets percentage
0.24
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How WDC.DE Stacks Against Its Sector Peers
| Metric | WDC.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.85 | 33.98 | Better (Cheaper) |
| ROE | 63.72% | 1007.00% | Weak |
| Net Margin | 34.86% | -47797.00% (disorted) | Strong |
| Debt/Equity | 0.72 | 0.44 | Weak (High Leverage) |
| Current Ratio | 1.45 | 5.66 | Neutral |
| ROA | 24.02% | -287350.00% (disorted) | Strong |
WDC.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Western Digital Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-29.71%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
5.20%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
-117.02%
Industry Style: Growth, Innovation, High Beta
Declining