Western Digital Corporation(WDC) - Stock detail

Western Digital Corporation

US
WDC
Western Digital Corporation(Listing date: 06/01/2012)

Western Digital Corporation is a Delaware corporation. The company's mission is to unlock the potential of data by harnessing the possibilities of data usage. It is a leading developer, manufacturer, and supplier of data storage devices and solutions based on NAND flash and hard disk drive technologies. Driven by dedicated flash-based products and hard disk drive business units to advance storage technology, the company's extensive and ever-expanding product portfolio provides powerful Flash and HDD storage solutions for everyone from students, gamers, and home offices to large enterprises and public clouds to capture, preserve, access, and transform increasingly diverse data. The company has an extensive technology and product portfolio in Flash and HDD, targeting multiple end markets such as "Cloud", "Client", and "Consumer".

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-03-06 16:41:22
Analysis based on 5 financial reports from periods: 2025-06-27, 2025-03-28, 2024-12-27, 2024-09-27, and 2024-06-28. Data includes company financial statements, valuation metrics, and market performance data as of March 6, 2026.
Overview

Western Digital Corporation demonstrates strong fundamental improvements in profitability and operational efficiency with remarkable turnaround from net loss to significant profit, though concerns remain about high debt levels and elevated valuation multiples that suggest the stock is fairly valued to slightly overvalued in the near term.

Valuation
4/10
Profitability
8/10
Financial health
4/10
Operation Advice
  • Hold for existing investors as the long-term growth story in data storage remains intact.
  • New investors should consider dollar-cost averaging on further pullbacks toward $220-$230 for better risk-reward entry.
  • Implement strict risk management with stop-loss near $220 based on historical MAE patterns.

Valuation

P/E TTM
22.95
P/E LYR
54.46
P/B MRQ
11.96
P/S TTM
--
AI Analysis
  • Western Digital's valuation presents a complex picture with elevated forward P/E of 54.46 suggesting high growth expectations, high P/B ratio of 11.96 indicating market values above tangible assets, and P/S ratio of 8.89 above industry median, though recent pullback from highs may offer entry opportunity with target range of $270-$310 over 6-12 months.
  • Forward P/E of 54.46 is elevated, suggesting high growth expectations
  • Trailing P/E of 22.95 appears reasonable relative to historical earnings growth
  • Price-to-book ratio of 11.96 is significantly high, indicating market values company far above tangible net assets
  • Price-to-sales ratio of 8.89 is above industry median, reflecting premium pricing based on growth prospects
  • Stock has experienced substantial volatility with 60-day trading range from $166.26 to $309.90
  • Recent price action shows pullback from February highs near $300 to current $245.25, potentially offering entry point for long-term investors
  • Reasonable target price range is $270-$310 over next 6-12 months based on blended valuation approach
Valuation trend

Profitability

ROE TTM
22.78%
Net margin
19.84%
Gross margin
38.78%
Total revenue
9.52B
AI Analysis
  • Western Digital exhibits exceptional profitability improvements with 50.70% revenue growth to $9.52 billion, significant margin expansion from 28.07% to 38.78% gross margin, dramatic EPS improvement from -$2.61 to $5.12, and strong return metrics showing effective capital utilization.
  • FY2025 revenue reached $9.52 billion, a 50.70% year-over-year increase driven by robust demand in data storage solutions
  • Gross margin expanded significantly to 38.78% in FY2025 from 28.07% in FY2024
  • Net margin improved to 19.84% from -12.63%, highlighting efficient cost control and pricing power
  • ROE and ROA surged to 22.78% and 9.89% respectively in FY2025, indicating effective capital utilization and operational efficiency
  • Diluted EPS improved dramatically from -$2.61 in FY2024 to $5.12 in FY2025, underscoring strong earnings recovery
  • Company showed remarkable turnaround from net loss of -$798 million in FY2024 to net profit of $1.89 billion in FY2025
Profitability
2024Q22024Q32024Q42025Q12025Q2
ROE TTM--4.30%9.29%19.53%22.78%
Earnings
2024Q22024Q32024Q42025Q12025Q2
Total revenue6.32B4.09B8.38B6.92B9.52B

Financial health

Debt/Asset
60.43%
Current ratio
1.08
Quick ratio
0.84
Cash ratio
0.84
AI Analysis
  • Western Digital demonstrates mixed financial health with adequate short-term liquidity but concerning debt-to-assets ratio of 60.43% indicating significant reliance on debt financing, though showing strong operational recovery and cost management.
  • Current ratio of 1.08 and quick ratio of 0.84 indicate adequate short-term liquidity
  • Quick ratio of 0.84 suggests limited capacity to cover immediate obligations without inventory liquidation
  • Debt-to-assets ratio of 60.43% indicates significant reliance on debt financing, elevating financial risk
  • High leverage is particularly concerning in a cyclical industry like technology hardware
  • Company has shown remarkable turnaround from net loss of -$798 million in FY2024 to net profit of $1.89 billion in FY2025
  • Strong operational recovery and cost management reflected in financial performance improvement
Leverage
2024Q22024Q32024Q42025Q12025Q2
Debt/Asset54.33%52.07%51.50%66.97%60.43%
Liquidity
2024Q22024Q32024Q42025Q12025Q2
Current ratio1.321.471.991.561.08