Western Digital Corporation
Find Ratings ReportsWESTERN DIGITAL CORP's gross profit margin for the second quarter of its fiscal year 2024 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. WESTERN DIGITAL CORP has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 9.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 3032.0 | 3107.0 |
EBITDA ($mil) | -23.0 | -31.0 |
EBIT ($mil) | -166.0 | -245.0 |
Net Income ($mil) | -287.0 | -451.0 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
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Cash & Equiv. ($mil) | 2481.0 | 1871.0 |
Total Assets ($mil) | 24385.0 | 25047.0 |
Total Debt ($mil) | 8833.0 | 7361.0 |
Equity ($mil) | 10944.0 | 12115.0 |
Profitability | Q2 FY24 | Q2 FY23 |
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Gross Profit Margin | 19.76 | 22.63 |
EBITDA Margin | -0.75 | -0.99 |
Operating Margin | -5.47 | -7.89 |
Sales Turnover | 0.46 | 0.63 |
Return on Assets | -9.26 | -0.31 |
Return on Equity | -21.13 | -0.64 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.67 | 1.91 |
Debt/Capital | 0.45 | 0.38 |
Interest Expense | 108.0 | 73.0 |
Interest Coverage | -1.54 | -3.36 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 326.0 | 319.0 |
Div / share | 0.0 | 0.0 |
EPS | -0.93 | -1.42 |
Book value / share | 33.57 | 37.98 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6372083.0 | 5371642.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.81 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, WESTERN DIGITAL CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WDC NM | Peers 53.34 | WDC NM | Peers 44.47 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. WDC's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WDC's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WDC 11.26 | Peers 26.06 | WDC NA | Peers 1.95 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. WDC's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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WDC 1.81 | Peers 23.59 | WDC -2895.83 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WDC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WDC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WDC 1.76 | Peers 14.13 | WDC -28.54 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WDC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WDC significantly trails its peers on the basis of sales growth. |
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