Western Digital Corporation(WDC)Fundamental Analysis & FinancialsNASDAQ
Valuation, growth, margins and balance sheet
Valuation Snapshot
What the multiples imply about expectations
The market considers the company to be a mid-cap company with a significant market presence. At current multiples, it trades at a premium—reflecting strong brand and market position, but leaving limited room for disappointment.
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears excellent. High ROE and strong ROA reflect highly efficient capital use. Debt is manageable within acceptable ranges.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Q2 2026(Latest) | $3.75B | $3.07B | $2.03B | $17.34 | $8.21 | 54.1% | 81.9% |
| Q1 2026 | $3.34B | $3.21B | $1.68B | $9.26 | $8.20 | 50.2% | 96.0% |
| Q4 2025 | $3.02B | $1.84B | $1.38B | $5.27 | $4.73 | 45.7% | 61.1% |
| Q3 2025 | $2.82B | $1.18B | $1.23B | $3.34 | $3.07 | 43.5% | 41.9% |
| Q2 2025 | $2.61B | $257.00M | $1.07B | $1.37 | $0.75 | 41.0% | 9.9% |
Key Insights:
- Revenue increased by 12.3% from previous quarter
- Net margin of 81.9% indicates strong profitability
- EPS improved by 0.2% quarter-over-quarter
Financial Efficiency
Utilization and collections performance
Asset Turnover 0.93 indicates moderate efficiency. Receivables Turnover 6.38 and DSO 57.24 reflect good collections. Working Capital Turnover 9.27 is moderately efficient. ROIC 93.7% highlights strong capital returns.
Efficiency Metrics
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Profit-focused operations with efficiency opportunities
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Excellent margin structure with strong bottom-line profitability
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$3.93B
Cash from core operations
Free Cash Flow (TTM)
$3.51B
Available after capex
Financial Position & Liquidity
Current Ratio
1.33
Adequate
Quick Ratio
0.85
Fair
Net Cash
$388.00M
Net creditor
Total Cash
$1.58B
Balance sheet cash
Total Debt
$1.19B
Outstanding borrowings
Cash Conversion Cycle
Working capital efficiency measurement
Days Sales Outstanding
57.2
days to collect payment
Days Inventory Outstanding
83.5
days to turn inventory
Cash Conversion Cycle
42.7
net days of cycle
Reasonable working capital management.
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
0.27%
Minimal stake
Institutional Ownership
88.87%
Majority backing
Short % of Float
4.90%
Minimal short
Short Ratio (Days)
2.8d
days to cover
Ownership structure shows limited insider stake and institutional majority backing.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a very sustainable dividend policy with a payout ratio of 1.9% (FCF coverage: 18.8x). Strong cash flow coverage supporting modest shareholder yield with ample room for sustainability.
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Earnings Calendar
Track upcoming and historical corporate earnings reports.
Market Insights & Research
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