Western Digital Corp (WDC)
Information Technology · Technology Hardware, Storage & Peripherals · US stock · S&P 500 component
$354.19
▼ -24.32 (6.43%)
Fair valueOvervalued
$273 −23.1% to fair value
$136fair band $232–$330$409
Day's range
$348.23 – $367.34
52-week range
$117.23 – $799.87
Red flags⚠ Possible earnings-quality issue (Beneish M)⚠ Heavy dilution⚠ Possible earnings-quality issue (Beneish M)⚠ Heavy dilution⚠ Possible earnings-quality issue (Beneish M)⚠ Heavy dilution⚠ Possible earnings-quality issue (Beneish M)⚠ Heavy dilution⚠ Possible earnings-quality issue (Beneish M)⚠ Heavy dilution
About Western Digital Corp
Western Digital makes hard disk drives and related data storage products used in data centers, personal computers and consumer devices. Its drives hold the data that cloud companies, businesses and individual users store. Revenue comes from selling drives to large cloud customers, computer makers, distributors and retailers, and demand depends on data growth and on the spending cycles of the biggest data center operators.
Revenue over the last twelve months came to $12.9 billion. Across three years, revenue grew 27.4% a year. It posts an operating margin of 34.5%, with return on invested capital of 47%. With net debt to EBITDA at negative 0.1 times, cash exceeds debt. The dividend yield is 0.2%. Overall, the X-Ray Score comes to 52 out of 100.
Price chart
52-wk range $117.23 – $799.87Volume 13,399,788Daily, split-adjusted
Vitals
Market cap$135.7B
52-week range$117.23 – $799.87
Volume (last day)13,399,788
P/E (TTM)14.3
EBIT / EV yield3.3%
Free-cash-flow yield2.6%
Dividend yield0.2%
Revenue (TTM)$12.9B
Net income (TTM)$9.4B
Operating margin34.5%
Return on capital47.3%
Debt incl. leases$1.2B
Cash & securities$1.6B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$273middle half of models $208 – $341
Overvalued
−23.1% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $354
Undervalued < $232Fair $232 – $330Overvalued > $330
P/E multiple
$345
P/B multiple
$189
P/S multiple
$215
EV/EBITDA multiple
$291
EV/EBIT multiple
$262
EV/revenue multiple
$257
10-year DCF, EBITDA exit
$331
5-year DCF, EBITDA exit
$363
10-year DCF, revenue exit
$340
5-year DCF, revenue exit
$364
10-year DCF, growth exit
$162
5-year DCF, growth exit
$151
Dividend discount, stable · not used
$22
Dividend discount, multi-stage · not used
$25
Earnings power value · not used
$122
Growth the price implies
23.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
27/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.3%
Free-cash-flow yield2.6%
Fair value vs price0.8×
Growth
Strong
75/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)27.4%
Growth consistency90%
Profitability
Fair
51/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital47.3%
Operating margin34.5%
Gross profitability45.5%
Financial health
Fair
67/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA-0.1×
Interest cover27.0×
Dividends
Weak
40/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield0.2%
Dividends vs free cash flow6%
Quarterly results: last 6 quarters
+30.9%
Mar '25
+30.0%
Jun '25
+27.4%
Oct '25
+25.2%
Jan '26
+45.5%
Apr '26
+43.8%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $3.7B.
Compare with peers
SNDK Sandisk Corp73 SMCI Super Micro Computer,...58 STX Seagate Technology Hol...56 NTAP NetApp, Inc.54Other Technology Hardware, Storage & Peripherals companies by X-Ray Score.
SWOT analysis: Western Digital Corp
Strengthsinside the company
- Operating margin of 34.5% is well above the 9.4% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 27.4% a year over three years (median 6.4% for industry peers).
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
- Operating profit covers interest 27x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Revenue growth picked up to 35.7% last year from 27.4% a year over three years.
- Trades at 14.4x earnings, 50% below the 28.8x median of industry peers.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- The price is 23% above our fair value estimate, so there is little room for disappointment.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- The price trend is down on the daily and weekly signals.
- Our checks raised: Possible earnings-quality issue (Beneish M); Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare WDC with peers and sector
Medians of 9 Technology Hardware, Storage & Peripherals peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): AAPL 53, DELL 53, SNDK 73, STX 56, HPE 45, NTAP 54.
| Metric | WDC | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 52 | 53 | 50 |
| Valuation | 27 | 59 | 52 |
| Growth | 75 | 59 | 54 |
| Profitability | 51 | 58 | 49 |
| Financial health | 67 | 51 | 49 |
| Dividends | 40 | 47 | 51 |
Sector leaders: highest X-Ray Score in Information Technology
WDC ranks #36 of 75 in Information Technology and #7 of 10 in Technology Hardware, Storage & Peripherals by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for WDC
Each factor is rated by where WDC stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 8 Average · 4 Bad of 21
Growth: 2 · 0 · 0
Profitability: 4 · 1 · 0
Financial strength: 2 · 2 · 0
Valuation: 1 · 2 · 2
Cash flow: 0 · 1 · 2
Efficiency: 0 · 2 · 0
| Factor | WDC | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +27.4% | Good beats 91% | +9.7% | – | – |
| Revenue growth, last year | +35.7% | Good beats 89% | +13.7% | +11.1% | ▲ Better |
| Profitability | |||||
| Gross margin | 48.9% | Average beats 35% | 57.8% | 31.3% | ▲ Better |
| Operating margin | 34.5% | Good beats 78% | 20.3% | 12.7% | ▲ Better |
| Net margin | 72.9% | Good beats 99% | 17.8% | 8.2% | ▲ Better |
| Return on invested capital | 47.3% | Good beats 78% | 19.4% | – | – |
| Return on equity | 106.3% | Good beats 94% | 21.0% | 12.5% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | -0.1x | Good beats 77% | 0.8x | 1.4x | ▲ Better |
| Interest cover | 27.0x | Average beats 54% | 23.0x | 6.5x | ▲ Better |
| Current ratio | 1.33 | Average beats 39% | 1.57 | 1.33 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 14.4x | Good beats 92% | 33.6x | 13.8x | ≈ In line |
| Price / book | 15.3x | Bad beats 25% | 8.3x | 1.7x | ▼ Worse |
| Price / sales | 10.5x | Bad beats 31% | 6.9x | 2.4x | ▼ Worse |
| EV / EBITDA | 28.0x | Average beats 43% | 24.7x | 42.6x | ▲ Better |
| Free cash flow yield | 2.6% | Average beats 37% | 3.4% | 1.7% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 27.2% | Average beats 59% | 22.3% | 4.0% | ▲ Better |
| Cash from operations / net income | 0.42 | Bad beats 3% | 1.39 | 1.03 | ▼ Worse |
| Accruals (lower is better) | +39.6% | Bad beats 1% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 4.4x | Average beats 65% | 3.9x | 3.6x | ▲ Better |
| Days sales outstanding | 57 days | Average beats 59% | 63 days | 57 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 5 Average · ● 2 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
Revenue growth (3y)Good
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 54/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $18.8B | $6.3B | $6.3B | $9.5B | $12.9B |
| Operating income | $2.4B | −$548M | −$403M | $2.3B | $4.5B |
| Net income | $1.5B | −$902M | −$765M | $1.6B | $9.4B |
| Operating cash flow | $1.9B | −$408M | −$294M | $1.7B | $3.9B |
| Operating margin | 12.7% | -8.8% | -6.4% | 24.5% | 34.5% |
| Free cash flow | $758M | −$1.2B | −$781M | $1.3B | $3.5B |
| Diluted EPS | $4.89 | $-5.37 | $-2.61 | $5.12 | $24.28 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
2 bullish · 2 neutral · 12 bearish
Weekly
Bearish
3 bullish · 1 neutral · 8 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 366.7 | Bearish |
| EMA 10 | 371.1 | Bearish |
| SMA 20 | 400.7 | Bearish |
| EMA 20 | 391.2 | Bearish |
| SMA 50 | 435.8 | Bearish |
| EMA 50 | 428.4 | Bearish |
| SMA 100 | 495.6 | Bearish |
| EMA 100 | 442.3 | Bearish |
| SMA 200 | 413.8 | Bearish |
| EMA 200 | 398.5 | Bearish |
Oscillators (daily)
| RSI (14) | 37.68 | Neutral |
| MACD (12, 26) | -25.37 | Bearish |
| Momentum (12) | -13.83 | Bearish |
| Stochastic %K (14) | 19.31 | Bullish |
| Williams %R (14) | -80.69 | Bullish |
| CCI (20) | -82.98 | Neutral |
Pivot points (classic, last session)
S3 326.7 | S2 337.5 | S1 345.8 | Pivot 356.6 | R1 364.9 | R2 375.7 | R3 384.1 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.55 USD
Yield on today's price
0.16%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.1500 | |
| 0.1500 | |
| 0.1250 | |
| 0.1250 | |
| 0.1000 | |
| 0.1000 | |
| 0.5000 | |
| 0.5000 | |
| 0.5000 | |
| 0.5000 | |
| 0.5000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold WDC
| ETF | Share of the fund |
|---|---|
| COWG Pacer US Large Cap Cash Cows Growth Le... | 4.53% |
| IGPT Invesco AI and Next Gen Software | 3.19% |
| SPHQ Invesco S&P 500 Quality | 3.08% |
| ARTY iShares Future AI & Tech | 2.92% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 2.52% |
| CGGO Capital Group Global Growth Equity | 2.45% |
| VOT Vanguard Mid-Cap Growth | 2.42% |
| TRFK Pacer Data and Digital Revolution | 2.37% |
The eight funds with the largest weight in WDC among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
WDC stock splits
WDC has split its stock once since 1997. The latest was a 2-for-1 split on 4 Jun 1997.
Full WDC stock split history →WDC SEC filings
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Regulation FD disclosure; Other events
8-KSEC EDGAR
Other events
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.