WDC Stock Analysis: Western Digital | NASDAQ
Computer Hardware | NASDAQ, USA | Market Cap: 164.489m USD | 12M Return: 732.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.86B
Qual. Beats: 5
Rev. Trend: 7.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Western Digital Corporation (NASDAQ: WDC) is a data storage company that designs, manufactures, and sells devices and solutions built primarily on hard disk drive (HDD) technology. Its product portfolio spans internal HDDs, data center drives and platforms, external and portable drives, NAS systems for home and office use, and related accessories. The company distributes its products through computer manufacturers, dealers, distributors, retailers, and its own sales force, serving customers across the United States, Asia, Europe, the Middle East, and Africa.
The HDDs are typically deployed in environments requiring high-capacity, cost-efficient bulk storage, such as enterprise data centers and cloud infrastructure, where they coexist with and often complement solid-state drives (SSDs). The storage hardware industry is highly capital-intensive, with manufacturers competing on storage density, cost per terabyte, and reliability, while also contending with the ongoing shift of workloads toward flash-based media.
Western Digital was founded in 1970 and is headquartered in San Jose, California. Beyond its core storage business, the company has a collaboration with Open Quantum Design focused on quantum error correction and related systems, aimed at advancing reliable quantum computing. The company is classified within the GICS Information Technology sector under the Technology Hardware, Storage & Peripherals sub-industry and trades as a mega-cap stock following its 1987 IPO.
- AI-driven data center demand lifts HDD capacity sales
- Seagate competition and SSD encroachment pressure market share
- Free cash flow surge funds buybacks and debt reduction
| Net Income: 6.49b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.19 > 0.02 and ΔFCF/TA 14.09 > 1.0 |
| NWC/Revenue: 19.31% < 20% (prev 26.90%; Δ -7.59% < -1%) |
| CFO/TA 0.22 > 3% & CFO 3.29b > Net Income 6.49b |
| Net Debt (861.0m) to EBITDA (7.54b): 0.11 < 3 |
| Current Ratio: 1.49 > 1.5 & < 3 |
| Outstanding Shares: last quarter (376.0m) vs 12m ago 5.03% < -2% |
| Gross Margin: 45.43% > 18% (prev 38.68%; Δ 6.75% > 0.5%) |
| Asset Turnover: 74.98% > 50% (prev 65.95%; Δ 9.03% > 0%) |
| Interest Coverage Ratio: 31.89 > 6 (EBIT TTM 7.18b / Interest Expense TTM 225.0m) |
| A: 0.15 (Total Current Assets 6.91b - Total Current Liabilities 4.64b) / Total Assets 15.0b |
| B: 0.46 (Retained Earnings 6.86b / Total Assets 15.0b) |
| C: 0.46 (EBIT TTM 7.18b / Avg Total Assets 15.7b) |
| D: 1.80 (Book Value of Equity 9.68b / Total Liabilities 5.37b) |
| Altman-Z'' = 7.44 = AAA |
| DSRI: 1.18 (Receivables 1.89b/1.47b, Revenue 11.8b/10.8b) |
| GMI: 0.85 (GM 38.68% / 45.43%) |
| AQI: 1.05 (AQ_t 0.38 / AQ_t-1 0.36) |
| SGI: 1.09 (Revenue 11.8b / 10.8b) |
| TATA: 0.21 (NI 6.49b - CFO 3.29b) / TA 15.0b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of July 23, 2026, the stock is trading at USD 556.67 with a total of 5,367,359 shares traded. Over the past week, the price has changed by +8.34%, over one month by -24.02%, over three months by +43.10% and over the past year by +732.36%.
Current recommended Stop Loss: 479.90 (which is 13.8% or 1.4 ATR below the current price).
Western Digital has received a consensus analysts rating of 4.48. Therefore, it is recommended to buy WDC.
- StrongBuy: 17
- Buy: 4
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 631.1 | 13.4% |
P/E Trailing = 27.9403
P/E Forward = 25.0627
P/S = 13.967
P/B = 16.9927
P/EG = 0.4246
Revenue TTM = 11.8b USD
EBIT TTM = 7.18b USD
EBITDA TTM = 7.54b USD
Long Term Debt = 2.48b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.61b USD (from shortTermDebt, last quarter)
Debt = 4.10b USD (corrected: LT Debt 2.48b + ST Debt 1.61b)
Net Debt = 861.0m USD (calculated: Debt 4.10b - CCE 3.24b)
Enterprise Value = 165b USD (164b + Debt 4.10b - CCE 3.24b)
Interest Coverage Ratio = 31.89 (Ebit TTM 7.18b / Interest Expense TTM 225.0m)
EV/FCF = 56.92x (Enterprise Value 165b / FCF TTM 2.90b)
FCF Yield = 1.76% (FCF TTM 2.90b / Enterprise Value 165b)
FCF Margin = 24.67% (FCF TTM 2.90b / Revenue TTM 11.8b)
Net Margin = 55.07% (Net Income TTM 6.49b / Revenue TTM 11.8b)
Gross Margin = 45.43% ((Revenue TTM 11.8b - Cost of Revenue TTM 6.43b) / Revenue TTM)
Gross Margin QoQ = 50.22% (prev 45.74%)
Tobins Q-Ratio = 10.99 (Enterprise Value 165b / Total Assets 15.0b)
Interest Expense / Debt = 5.49% (Interest Expense 225.0m / Debt 4.10b)
Taxrate = 7.48% (524.0m / 7.00b)
NOPAT = 6.64b (EBIT 7.18b * (1 - 7.48%))
Current Ratio = 1.49 (Total Current Assets 6.91b / Total Current Liabilities 4.64b)
Debt / Equity = 0.42 (Debt 4.10b / totalStockholderEquity, last quarter 9.68b)
Debt / EBITDA = 0.11 (Net Debt 861.0m / EBITDA 7.54b)
Debt / FCF = 0.30 (Net Debt 861.0m / FCF TTM 2.90b)
Total Stockholder Equity = 7.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 41.30% (Net Income 6.49b / Total Assets 15.0b)
RoE = 91.94% (Net Income TTM 6.49b / Total Stockholder Equity 7.05b)
RoCE = 75.22% (EBIT 7.18b / Capital Employed (Equity 7.05b + L.T.Debt 2.48b))
RoIC = 58.07% (NOPAT 6.64b / Invested Capital 11.4b)
WACC = 14.38% (E(164b)/V(169b) * Re(14.61%) + D(4.10b)/V(169b) * Rd(5.49%) * (1-Tc(0.07)))
Discount Rate = 14.61% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 95.37 | Cagr: 6.69%
[DCF] Terminal Value 60.98% ; FCFF base≈2.08b ; Y1≈2.39b ; Y5≈3.52b
[DCF] Fair Price = 71.26 (EV 25.4b - Net Debt 861.0m = Equity 24.6b / Shares 344.7m; r=14.38% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.37 | # QB: 5
Revenue Correlation: 6.97 | Revenue CAGR: 0.73% | SUE: 0.04 | # QB: 0
EPS current Quarter (2026-09-30): EPS=3.73 | Chg30d=+2.48% | Revisions=+57% | Analysts=15
EPS current Year (2026-06-30): EPS=9.96 | Chg30d=+0.15% | Revisions=+50% | GrowthEPS=+101.9% | GrowthRev=+35.2%
EPS next Year (2027-06-30): EPS=18.55 | Chg30d=+2.73% | Revisions=+62% | GrowthEPS=+86.3% | GrowthRev=+41.1%
[Analyst] Revisions Ratio: +80% (up=12, down=0)