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Western Digital Corp WDC

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Stock XNAS Rating as of
$76.52 −0.58 (0.75%)
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As of Delayed Price Closed
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Company Report

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Western Digital Has Big Positions in HDDs and Flash, but Doesn’t Earn a Moat

William Kerwin

Western Digital is a leader in both of the pre-eminent data storage markets: hard disk drives, or HDDs, and NAND flash memory. We think Western's position in these markets paves the way for a strong top-line growth trajectory over the next five years, but believe these markets feature commoditylike products and massive investment requirements that leave Western vulnerable to cyclical downturns and prevent it from carving out an economic moat.

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Price vs Fair Value

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WDC is trading at a 615% premium.
Price
$76.52
Fair Value
$28.00
Uncertainty
High
1-Star Price
$11.76
5-Star Price
$91.80
Economic Moat
Wmxmm
Capital Allocation
Mhxmrpb

Bulls Say, Bears Say

Bulls

We expect tight NAND supply and strong pricing over the next two years to fuel sales growth and expand margins for Western Digital.

Bears

We think the HDD and flash markets are commoditylike and cyclical, leaving Western Digital vulnerable to market pricing declines that can shrink the top line and sink margins.

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News

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Trading Information

Previous Close Price
$77.10
Day Range
$75.88–77.47
52-Week Range
$35.62–77.66
Bid/Ask
$76.60 / $76.85
Market Cap
$24.99 Bil
Volume/Avg
3.9 Mil / 6.4 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
2.07
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Western Digital is a leading vertically integrated supplier of data storage solutions, spanning both hard disk drives and solid-state drives. In the HDD market it forms a practical duopoly with Seagate, and it is the largest global producer of NAND flash chips for SSDs in a joint venture with competitor Kioxia.
Sector
Technology
Industry
Computer Hardware
Stock Style Box
Mid Core
Total Number of Employees
53,000
Website
https://www.wdc.com

Competitors

Valuation

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Metric
WDC
005930
STX
Price/Earnings (Normalized)
 —26.012,032.80
Price/Book Value
 2.471.41—
Price/Sales
 2.071.683.38
Price/Cash Flow
 —8.61353.20
Price/Earnings
WDC
005930
STX

Financial Strength

Metric
WDC
005930
STX
Quick Ratio
 0.85—0.41
Current Ratio
 1.672.550.85
Interest Coverage
 −4.978.150.43
Quick Ratio
WDC
005930
STX

Profitability

Metric
WDC
005930
STX
Return on Assets (Normalized)
 −4.85%4.72%0.18%
Return on Equity (Normalized)
 −11.20%6.10%—
Return on Invested Capital (Normalized)
 −4.70%4.99%6.91%
Return on Assets
WDC
005930
STX
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