Data last refreshed 17 days ago — analysis may not reflect the latest market data

WDCWDC

US

NEUTRAL

$638.72

P/E

37.49

PEG

0.14

FCF Yield

Rev Growth YoY

+32.0% YoY

Gross Margin

45.4%

Health Score

5/10

D/E Ratio

0.85

Confidence

LOW


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Business Snapshot

Western Digital Corporation (WDC) designs, manufactures, and sells data storage devices and solutions, including hard disk drives (HDDs) and NAND flash memory-based storage products under the SanDisk and WD brands. The company serves cloud service providers, enterprise clients, and individual consumers, competing in a duopolistic HDD market alongside Seagate. Market cap data is unavailable, placing the company's scale beyond direct classification. A key defining characteristic is its dual exposure to both mature HDD demand cycles and cyclical NAND flash markets.

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Financial Health

Gross margin stands at 45.4%, though year-over-year trend data is unavailable for comparison, and net margin is a very high 55.3%. The balance sheet appears reasonably leveraged with a debt-to-equity ratio of 0.85x and a current ratio of 1.08x, indicating adequate short-term liquidity but limited headroom...

Risk Assessment

  • VALUATION — The trailing P/E of 37.49x trades at a notable premium to the sector average of 22x, raising the bar for continued growth.
  • TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
  • DEBT / LIQUIDITY — The current ratio of 1.08x provides only a thin buffer above the 1.0x threshold, indicating limited short-term liquidity cushion.
  • EARNINGS QUALITY — While the company beat estimates in 4 of the last 4 quarters, the extremely high net margin of 55.3% may be distorted by non-operating or one-time items, warranting caution....

Gross margin stands at 45.4%, though year-over-year trend data is unavailable for comparison, and net margin is a very high 55.3%. The balance sheet appears reasonably leveraged with a debt-to-equity ratio of 0.85x and a current ratio of 1.08x, indicating adequate short-term liquidity but limited headroom. Free cash flow is not reported, making a direct assessment of cash generation impossible. Overall financial health is difficult to fully assess due to missing cash flow data, but the high margins and manageable debt are positive signs.

- VALUATION — The trailing P/E of 37.49x trades at a notable premium to the sector average of 22x, raising the bar for continued growth. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DEBT / LIQUIDITY — The current ratio of 1.08x provides only a thin buffer above the 1.0x threshold, indicating limited short-term liquidity cushion. - EARNINGS QUALITY — While the company beat estimates in 4 of the last 4 quarters, the extremely high net margin of 55.3% may be distorted by non-operating or one-time items, warranting caution.

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Full 8-section analysis includes:

Financial Health
Growth Momentum
Valuation Snapshot
Risk Flags
Sentiment & News
Technical Snapshot
Full Verdict with Confidence Rating
Last updated 414 hours ago · Data sourced from FMP & Finnhub · Not financial advice