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:2026-06-04 17:40:44
Analysis based on 5 financial reports from periods: 2025-06-27, 2025-03-28, 2024-12-27, 2024-09-27, 2024-06-28. Data includes real-time stock price as of 2026-06-04 close. Financial metrics include TTM (Trailing Twelve Months) calculations. Analysis completed on 2026-06-04.
Overview

Western Digital Corporation (WDC) is a leading global data storage company experiencing a powerful fundamental turnaround with exceptional profitability growth, but facing valuation concerns and mixed financial health indicators.

Valuation
2/10
Profitability
9/10
Financial health
5/10
Operation Advice
  • Hold existing positions; wait for a more attractive entry point in the $450-$500 range.
  • Monitor upcoming financial reports closely for sustainability of growth and margin trends.
  • The current price of $575.50 offers limited immediate upside from the fundamental-based target price of $530.

Valuation

P/E TTM
31.45
P/E LYR
54.46
P/B MRQ
21.15
P/S TTM
--
AI Analysis
  • Valuation metrics suggest the stock is trading at a premium, with high P/E and P/B ratios indicating the market is pricing in continued high growth. The stock appears overvalued on a purely multiples basis at the current price.
  • Current price is $575.50 as of 2026-06-04 close
  • P/E (TTM) is 31.45 based on trailing twelve months earnings
  • Forward-looking P/E (Dynamic) is 54.46, suggesting high market expectations for future earnings
  • Price-to-Book (P/B) ratio is 21.15, an extremely high ratio indicating market values company far above its accounting book value
  • Price-to-Sales (P/S) ratio is 20.84, confirming premium valuation relative to current revenue
  • Stock has experienced significant volatility, rising from near $250 in late March 2026 to above $600 in early June 2026
  • Fundamental-based target price is $530, suggesting limited immediate upside from current price
  • WDC appears to be overvalued on a purely multiples basis at current price levels
Valuation trend

Profitability

ROE TTM
22.78%
Net margin
19.84%
Gross margin
38.78%
Total revenue
9.52B
AI Analysis
  • WDC has exhibited exceptional and accelerating profitability growth with robust revenue increases and dramatic margin expansion, marking a stark reversal from previous losses.
  • Year-over-year revenue growth has been robust, ranging from 44.93% to 60.33% in recent quarters
  • Revenue growth for fiscal year ending June 2025 was 50.70%
  • Gross margin improved from 28.07% in FY2024 to 38.78% in FY2025
  • Company swung from net loss of -$798M (-12.63% net margin) in FY2024 to net profit of $1.89B (19.84% net margin) in FY2025
  • Return on Equity (ROE-TTM) is 22.78%, indicating highly efficient use of shareholder capital
  • Return on Assets (ROA-TTM) is 9.89%, showing efficient asset utilization
  • Profit margins have expanded dramatically over the last several reported quarters
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
  • Financial health shows a mixed picture with strong profitability but liquidity concerns, moderate financial leverage, and lack of specific cash flow metrics for complete assessment.
  • Current ratio is 1.08, indicating limited short-term flexibility to cover immediate liabilities
  • Quick ratio is 0.84, relatively low and warrants attention
  • Debt-to-asset ratio is 60.43%, indicating moderate level of financial leverage
  • Significant portion of assets are financed by debt
  • Company has demonstrated dramatic recovery into strong profitability which should support debt servicing ability
  • Provided data lacks specific cash flow metrics, which are crucial for complete health assessment
Leverage
2024Q22024Q32024Q42025Q12025Q2
Debt/Asset54.33%52.07%51.50%66.97%60.43%
Liquidity
2024Q22024Q32024Q42025Q12025Q2
Current ratio1.321.471.991.561.08