Western Digital Corp
Exchange: NASDAQSector: TechnologyIndustry: Computer Hardware
Western Digital empowers the systems and people who rely on data. Consistently delivering massive capacity, high quality and low TCO, Western Digital is trusted by hyperscale cloud providers, enterprise data centers, content professionals and consumers around the world. Core to its values, the company recognizes the urgency to combat climate change and is on a mission to design storage technologies that not only meet today’s data demands but also contribute to a more climate-conscious future.
Did you know?
Capital expenditures increased by 39% from FY24 to FY25.
Current Price
$431.52
-0.69%GoodMoat Value
$117.68
72.7% overvaluedProfile
Valuation (TTM)
Market Cap$146.30B
P/E23.30
EV$101.40B
P/B27.55
Shares Out339.04M
P/Sales12.42
Revenue$11.78B
EV/EBITDA19.26
Western Digital Corp (WDC) Stock Analysis
GoodMoat Analysis
Western Digital is a leading data storage hardware manufacturer, but it currently fails the GoodMoat framework's initial quality gate. While it may possess some competitive advantages, its severe revenue decline and valuation far above the framework's target price make it an unfavourable candidate for a value investor's initial watchlist.
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Western Digital Corp (WDC) is a major player in the data storage industry, manufacturing hard disk drives (HDDs) and NAND flash memory (SSDs). For a value investor, the initial analysis using the GoodMoat framework yields a concerning picture. The company's revenue growth of -41.0% YoY is a severe negative outlier, and while metrics like ROE (71.5%) and profit margin (35.4%) appear strong, they are likely inflated by the deep cyclical downturn in the memory market rather than indicative of durable operational quality. The framework's Decision Framework (Step 1) requires a Moat Score of at least 5 and predominantly 'Strong' quality ratings to proceed. The catastrophic revenue decline and lack of gross margin data immediately cast doubt on meeting the quality thresholds for consistent returns and growth.
Regarding valuation, the stock trades at $296.14, which is 152% above the GoodMoat Target price of $117.68, signaling extreme caution. With a P/E of 27x amidst a revenue collapse, the price appears to be anticipating a dramatic recovery, leaving no margin of safety. While the company may have moat characteristics like technology leadership and scale in a consolidated industry, the combination of failing the initial quality check, extreme overvaluation relative to the framework's target, and the presence of a high-confidence red flag (severe growth deceleration) leads to an 'unfavourable' assessment for further investigation under this value-oriented lens.
Analysis based on data as of 2024-05-15.
Market Cap$146.30B
Current Price$431.52
P/E Ratio23.30
Forward P/E—
PEG Ratio0.04
EPS$5.12
Book Value$15.66
P/B Ratio27.55
WDC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.6B
Revenue
16.6B
FY19
16.7B
FY20
16.9B
FY21
18.8B
FY22
6.3B
FY23
6.3B
FY24
9.5B
FY25
Net Income
—
FY19
—
FY20
821M
FY21
1.5B
FY22
—
FY23
—
FY24
1.9B
FY25
WDC 52-Week Range
$43.92
$434.52
50-Day MA: $317.04200-Day MA: $190.91
Did you know?
Free cash flow has been growing at 8.4% annually.
Western Digital Corp (WDC) Financial Summary
Western Digital Corp (WDC) is a Technology company in the Computer Hardware industry, listed on NASDAQ. The stock currently trades at $431.52 with a market capitalization of $146.30B.
Key valuation metrics include a P/E ratio of 23.30, price-to-book ratio of 27.55, and EPS of $5.12. The company reports a profit margin of 54.3% and return on equity of 120.5%.
WDC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $146.30B |
| P/E Ratio | 23.30 |
| EPS | $5.12 |
| P/B Ratio | 27.55 |
| P/S Ratio | 12.42 |
| EV/EBITDA | 19.26 |
| Dividend Yield | 0.03% |
| Profit Margin | 54.3% |
| Return on Equity | 120.5% |
| Debt/Equity | 0.89 |
WDC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $16.57B | $-754.00M |
| FY20 | $16.74B | $-250.00M |
| FY21 | $16.92B | $821.00M |
| FY22 | $18.79B | $1.55B |
| FY23 | $6.25B | $-1.68B |
| FY24 | $6.32B | $-798.00M |
| FY25 | $9.52B | $1.89B |
Western Digital Corp (WDC) Valuation
Based on GoodMoat's DCF model, Western Digital Corp has a fair value estimate of $117.68. At the current price of $431.52, the stock appears 266.7% overvalued relative to our intrinsic value estimate.
WDC Quality Indicators
Western Digital Corp maintains a profit margin of 54.3% and an operating margin of 24.5%. Return on equity stands at 120.5%. The current ratio is 1.08. Debt-to-equity ratio is 0.89.
About Western Digital Corp
Western Digital empowers the systems and people who rely on data. Consistently delivering massive capacity, high quality and low TCO, Western Digital is trusted by hyperscale cloud providers, enterprise data centers, content professionals and consumers around the world. Core to its values, the company recognizes the urgency to combat climate change and is on a mission to design storage technologies that not only meet today’s data demands but also contribute to a more climate-conscious future.
WDC Free Cash Flow
Western Digital Corp generated $1.28B in trailing twelve-month free cash flow, representing an FCF yield of 0.88%. This low FCF yield may reflect heavy reinvestment or growth spending.
WDC Shares Outstanding
Western Digital Corp has 0.34 billion shares outstanding at a share price of $431.52, giving it a market capitalization of $146.30B.
WDC Recent Insider Trades
Recent insider transactions at Western Digital Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Tregillis Cynthia L (Chief Legal Officer & Corp Sec) | SELL | 363 | $136883.67 |
| Gubbi Vidyadhara K (Chief of Global Operations) | SELL | 8,518 | $2.17M |
| Tregillis Cynthia L (Chief Legal Officer & Corp Sec) | SELL | 777 | $200396.07 |