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AI Spotlight on WDC
Company Description
Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally.It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook personal computers (PCs), smart video systems, gaming consoles, and set top boxes; flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications; and flash-based memory wafers.The company also provides data center devices and solutions comprising enterprise helium hard drives; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; data center solutions for data storage systems and tiered storage models; and data storage platforms.
In addition, it offers client solutions, such as external HDD storage products in mobile and desktop form; client portable SSDs; removable cards that are used in consumer devices comprising mobile phones, tablets, imaging systems, and cameras and smart video systems; universal serial bus flash drives for use in the computing and consumer markets; and wireless drive products used in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music, and documents to tablets, smartphones, and PCs. The company sells its products under the G-Technology, SanDisk, and WD brands to original equipment manufacturers, distributors, dealers, resellers, and retailers.Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.
Market Data
Last Price | 48.93 |
Change Percentage | 1.51% |
Open | 48.3 |
Previous Close | 48.2 |
Market Cap ( Millions) | 17019 |
Volume | 9268505 |
Year High | 61.64 |
Year Low | 39.89 |
M A 50 | 49.06 |
M A 200 | 51.43 |
Financial Ratios
FCF Yield | 2.56% |
Dividend Yield | 0.00% |
ROE | 11.11% |
Debt / Equity | 59.66% |
Net Debt / EBIDTA | 196.17% |
Price To Book | 1.37 |
Price Earnings Ratio | 13.57 |
Price To FCF | 39.03 |
Price To sales | 1.09 |
EV / EBITDA | 8.54 |
News
- Feb -24 - Sandisk Celebrates Nasdaq Listing After Completing Separation from Western Digital
- Feb -19 - SanDisk Set to Join S&P SmallCap 600
- Feb -18 - Why Western Digital's Stock Is Outperforming The S&P 500 In 2025?
- Feb -12 - Western Digital Unveiled Go-Forward Strategy at Investor Day 2025
- Jan -30 - Western Digital to Host Investor Day 2025 in New York City
- Jan -30 - Western Digital Q2 Earnings Beat, Revenues Up Y/Y on Solid HDD Growth
- Jan -30 - Western Digital: Bank On HDD Strength
- Jan -30 - Western Digital Corporation (WDC) Q2 2025 Earnings Call Transcript
- Jan -30 - Western Digital (WDC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
- Jan -29 - Western Digital (WDC) Q2 Earnings and Revenues Beat Estimates
- Jan -29 - Western Digital expects third-quarter revenue below estimates on weak demand
- Jan -27 - Western Digital Gears Up for Q2 Earnings: Here's What to Expect
- Jan -23 - Western Digital (WDC) Outperforms Broader Market: What You Need to Know
- Jan -22 - Western Digital (WDC) Earnings Expected to Grow: Should You Buy?
- Jan -20 - WDC Reports Q2 Preliminary Results, Challenges in Flash Business
- Jan -17 - Western Digital Faces 'Challenging Pricing Environment,' But There's Long-Term Potential: Analysts
- Jan -17 - Western Digital Stock Is Having a Tough Time. Just Look at Its Latest Guidance.
- Jan -16 - Western Digital (WDC) Declines More Than Market: Some Information for Investors
- Jan -16 - Western Digital to Announce Second Quarter Fiscal 2025 Financial Results on January 29, 2025
- Jan -10 - Western Digital (WDC) Suffers a Larger Drop Than the General Market: Key Insights
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Hard Disk Drives
Expected Growth : 10 %
What the company do ?
Western Digital Corporation's Hard Disk Drives offer high-capacity storage solutions with reliable performance, ideal for personal and enterprise data storage needs.
Why we expect these perspectives ?
Western Digital's 10% growth in Hard Disk Drives is driven by increasing demand for data storage in cloud computing, artificial intelligence, and 5G networks. Additionally, the rise of gaming and video content creation fuels demand for high-capacity storage solutions. Furthermore, the company's strategic acquisitions and investments in SSD technology also contribute to its growth.
Segment nΒ°2 -> Flash-based
Expected Growth : 18 %
What the company do ?
SanDisk, a Flash-based storage solution from Western Digital Corporation, offers high-performance and reliable storage products, including SSDs, memory cards, and USB drives.
Why we expect these perspectives ?
Western Digital's Flash-based segment growth is driven by increasing demand for high-capacity storage in data centers, adoption of cloud computing, and rising use of IoT devices. Additionally, the company's strategic acquisitions, such as SanDisk, have expanded its product portfolio and strengthened its position in the flash storage market.
Western Digital Corporation Products
Product Range | What is it ? |
---|---|
Hard Disk Drives (HDD) | Non-volatile storage devices that store data on magnetic disks |
Solid-State Drives (SSD) | Flash-based storage devices that provide high-speed data access |
Flash Storage | High-capacity, low-latency storage solutions for data centers and cloud infrastructure |
Data Center Systems | Customizable, scalable storage solutions for data centers and cloud infrastructure |
Client SSDs | High-performance storage solutions for laptops, desktops, and mobile devices |
External Storage | Portable, high-capacity storage solutions for data backup and transfer |
G-Technology External Storage | High-performance, portable storage solutions for creative professionals |
SanDisk Memory Cards | High-capacity, high-speed memory cards for cameras, drones, and other devices |
Western Digital Corporation's Porter Forces
Threat Of Substitutes
Western Digital Corporation faces moderate threat from substitutes, as customers have limited alternatives for data storage solutions. However, the rise of cloud storage and solid-state drives poses a moderate threat to the company's traditional hard drive business.
Bargaining Power Of Customers
Western Digital Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.
Bargaining Power Of Suppliers
Western Digital Corporation relies on a few key suppliers for components such as memory chips and printed circuit boards. While the company has some bargaining power due to its large scale, suppliers may still exert some pressure on prices and delivery terms.
Threat Of New Entrants
The data storage industry has high barriers to entry, including significant capital requirements and technological expertise. Additionally, Western Digital Corporation's established brand and customer relationships make it difficult for new entrants to gain traction.
Intensity Of Rivalry
The data storage industry is highly competitive, with several established players competing for market share. Western Digital Corporation faces intense rivalry from companies such as Seagate Technology and Toshiba, which can lead to pricing pressure and increased marketing expenses.
Capital Structure
Value | |
---|---|
Debt Weight | 39.46% |
Debt Cost | 3.95% |
Equity Weight | 60.54% |
Equity Cost | 11.50% |
WACC | 8.52% |
Leverage | 65.18% |
Western Digital Corporation : Quality Control
Western Digital Corporation passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
HPQ | HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three β¦ |
ANET | Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating β¦ |
DELL | Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide. The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions β¦ |
NTAP | NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The β¦ |
SMCI | Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high-performance server and storage solutions based on modular and open architecture. Its solutions range from complete server, storage, modular β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
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NetApp
A-Score
1-Year Total Return ->
π₯
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HP
A-Score
1-Year Total Return ->
π₯
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Arista Networks
A-Score
1-Year Total Return ->
4
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Dell Technologies
A-Score
1-Year Total Return ->
5
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Western Digital
A-Score
1-Year Total Return ->
6
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