Western Digital Corporation

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WDC : NASDAQ :
$86.65 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 0
08/22/17 - 4:00 PM ET

Financial Analysis


WESTERN DIGITAL CORP's gross profit margin for the fourth quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. WESTERN DIGITAL CORP has strong liquidity. Currently, the Quick Ratio is 1.92 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.44% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)4842.03495.0
EBITDA ($mil)1318.0642.0
EBIT ($mil)772.0237.0
Net Income ($mil)280.0-366.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)6378.08378.0
Total Assets ($mil)29860.032862.0
Total Debt ($mil)13151.016994.0
Equity ($mil)11418.011145.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin45.6637.68
EBITDA Margin27.2218.36
Operating Margin15.946.78
Sales Turnover0.640.4
Return on Assets1.320.73
Return on Equity3.472.17
Debt Q4 FY17 Q4 FY16
Current Ratio2.551.81
Debt/Capital0.540.6
Interest Expense0.0226.0
Interest Coverage0.01.05


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)291.0284.0
Div / share0.50.5
EPS0.93-1.4
Book value / share39.2439.24
Institutional Own % n/a n/a
Avg Daily Volume4197333.04158390.0

Valuation


BUY. WESTERN DIGITAL CORP's P/E ratio indicates a significant premium compared to an average of 19.32 for the Computers & Peripherals industry and a significant premium compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 5.41. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WDC 64.44 Peers 19.32   WDC 6.98 Peers 11.98

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WDC is trading at a significant premium to its peers.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WDC 6.97 Peers 17.76   WDC 0.08 Peers 1.89

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WDC is trading at a significant discount to its peers.

 

Discount. 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.

WDC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WDC 2.10 Peers 5.41   WDC 6.66 Peers 5.04

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

WDC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WDC 1.26 Peers 3.13   WDC 46.93 Peers 3.96

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 industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

WDC has a sales growth rate that significantly exceeds its peers.

 

 

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