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 Rating5.7/10
Generated at:2026-04-20 17:42:54
Analysis based on 5 consecutive financial reports ending on: 2025-06-27, 2025-03-28, 2024-12-27, 2024-09-27, 2024-06-28. Stock price data as of 2026-04-20 close. Data sources include company financial reports and real-time market data.
Overview

Western Digital Corporation (WDC) is a leading global data storage device manufacturer experiencing a powerful operational and financial turnaround. The company has shown explosive revenue growth and dramatic margin expansion, swinging from significant losses to substantial profits. However, its valuation metrics are at premium levels, and it carries moderately high financial leverage, presenting a mixed fundamental picture that suggests holding rather than aggressive buying at current prices.

Valuation
4/10
Profitability
8/10
Financial health
5/10
Operation Advice
  • Existing shareholders should hold to see if the company can meet high growth expectations embedded in the current price.
  • New investors should wait for a pullback or more concrete evidence that the elevated profitability is sustainable before establishing a position.
  • A reasonable near-term trading range is $340 to $390, with a fundamental-based 12-month target price range of $400 to $450 if growth moderates but remains robust.

Valuation

P/E TTM
33.01
P/E LYR
54.46
P/B MRQ
17.21
P/S TTM
--
AI Analysis
  • Valuation metrics are elevated, with high P/E, P/B, and P/S ratios suggesting the market has priced in significant future growth. The current price may be fairly valued to slightly undervalued if the growth trajectory is sustained, but traditional metrics are stretched.
  • The Trailing Twelve Months (TTM) P/E is 33.01, and the Forward (Dynamic) P/E is 54.46, which are high ratios suggesting the market has priced in significant future growth.
  • The P/B ratio of 17.21 is exceptionally high, indicating the market values the company's intangible assets and future growth prospects far above its accounting book value.
  • The P/S ratio of 13.32 (TTM) is also very high, reflecting a premium valuation relative to its revenue base.
  • The stock price is $374.11 and has experienced high volatility over the last 60 days, trading between $232.20 and $380.65, with a strong upward trend from early March.
  • Given the high growth rates, traditional valuation metrics are stretched and may not fully capture the turnaround story.
  • A reasonable near-term trading range, considering volatility and momentum, could be $340 to $390.
  • A fundamental-based 12-month target price range could be $400 to $450 if earnings growth moderates but remains robust and a premium P/E multiple is applied.
  • The current price of $374.11 sits at the lower end of this projected range, suggesting it may be fairly valued to slightly undervalued if the growth trajectory is sustained.
Valuation trend

Profitability

ROE TTM
22.78%
Net margin
19.84%
Gross margin
38.78%
Total revenue
9.52B
AI Analysis
  • Western Digital has demonstrated a remarkable and sustained turnaround in profitability, with explosive revenue growth, dramatic margin expansion, and strong return metrics, indicating efficient use of equity and assets.
  • The company has shown explosive year-over-year revenue growth, with the latest annual figure up 50.70% to $9.52B.
  • Quarterly revenue growth figures have consistently been above 44%.
  • Gross Margin expanded from 28.07% to 38.78% over the reported periods.
  • The company swung from a net loss of -$798M (net margin of -12.63%) to a net profit of $1.89B (net margin of 19.84%) in the latest annual report.
  • Return on Equity (ROE) is 22.78% and Return on Assets (ROA) is 9.89% (TTM), which are strong figures.
  • The strong ROE and ROA indicate efficient use of shareholder equity and company assets to generate profits.
  • This profitability performance represents a stark reversal from negative figures in the prior year.
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
  • The company's financial health shows a mixed picture, with adequate short-term liquidity but a moderately high level of financial leverage, indicating reliance on debt financing which increases risk in a cyclical industry.
  • The Current Ratio of 1.08 and Quick Ratio of 0.84 indicate adequate short-term liquidity.
  • The quick ratio of 0.84 suggests limited ability to cover immediate obligations without relying on inventory sales.
  • The Debt-to-Asset Ratio of 60.43% indicates a moderately high level of financial leverage.
  • This leverage suggests the company relies significantly on debt financing.
  • High debt financing can amplify returns but also increases financial risk.
  • The financial risk is particularly relevant in a cyclical industry like technology hardware.
Leverage
2024Q22024Q32024Q42025Q12025Q2
Debt/Asset54.33%52.07%51.50%66.97%60.43%
Liquidity
2024Q22024Q32024Q42025Q12025Q2
Current ratio1.321.471.991.561.08