Western Digital Corp. (WDC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Western Digital Corp.

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Why is Western Digital Corp. ?

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,866 MM
NET PROFIT(HY) At USD 1,606.9 MM has Grown at 185.72%
ROCE(HY) Highest at 25.98%

With ROE of 52.58%, it has a very attractive valuation with a 3.75 Price to Book Value

Over the past year, while the stock has generated a return of 196.25%, its profits have risen by 300.4% ; the PEG ratio of the company is 0

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 196.25% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Western Digital Corp. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Western Digital Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Western Digital Corp.

197.21%

2.73

61.01%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.52%

EBIT Growth (5y)

39.36%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

2.07%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.02%

ROE (avg)

14.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.75

EV to EBIT

6.96

EV to EBITDA

6.01

EV to Capital Employed

2.80

EV to Sales

1.53

PEG Ratio

0.02

Dividend Yield

0.18%

ROCE (Latest)

40.30%

ROE (Latest)

52.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,866 MM

NET PROFIT(HY)

At USD 1,606.9 MM has Grown at 185.72%

ROCE(HY)

Highest at 25.98%

DIVIDEND PAYOUT RATIO(Y)

Highest at 13.21%

CASH AND EQV(HY)

Highest at USD 7,357 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.53 times

DIVIDEND PER SHARE(HY)

Highest at USD 7.27

-11What is not working for the Company

NET SALES(Q)

At USD 2,605 MM has Fallen at -27.83%

NET PROFIT(Q)

At USD 442.9 MM has Fallen at -34.92%

RAW MATERIAL COST(Y)

Grown by 13.23% (YoY

EPS(Q)

Lowest at USD 0.76

Here's what is working for Western Digital Corp.

Operating Cash Flow

Highest at USD 1,866 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 7,357 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 7.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 13.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Western Digital Corp.

Net Sales

At USD 2,605 MM has Fallen at -27.83%

over average net sales of the previous four periods of USD 3,609.5 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Net Profit

At USD 442.9 MM has Fallen at -34.92%

over average net sales of the previous four periods of USD 680.56 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

EPS

Lowest at USD 0.76

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 13.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales