Western Digital Corp

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WDC : NASDAQ : Technology
$47.51 | %
Today's Range: 47.05 - 51.00
Avg. Daily Volume: 6,151,700
07/29/16 - 4:00 PM ET

Financial Analysis


WESTERN DIGITAL CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WESTERN DIGITAL CORP has average liquidity. Currently, the Quick Ratio is 1.42 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 21.05% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)3495.03191.0
EBITDA ($mil)652.0609.0
EBIT ($mil)232.0359.0
Net Income ($mil)-351.0220.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)8378.05286.0
Total Assets ($mil)32877.015181.0
Total Debt ($mil)16994.02567.0
Equity ($mil)11160.09219.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin37.6836.73
EBITDA Margin18.6519.08
Operating Margin6.6411.25
Sales Turnover0.40.96
Return on Assets0.789.65
Return on Equity2.315.89
Debt Q4 FY16 Q4 FY15
Current Ratio1.812.63
Debt/Capital0.60.22
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)0.0230.0
Div / share0.50.5
EPS-1.340.94
Book value / share0.040.08
Institutional Own % n/a n/a
Avg Daily Volume6366315.05797542.0

Valuation


HOLD. WESTERN DIGITAL CORP's P/E ratio indicates a significant premium compared to an average of 14.36 for the Computers & Peripherals industry and a significant premium compared to the S&P 500 average of 25.11.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WDC 42.62 Peers 14.36   WDC NA Peers 11.08

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WDC 7.95 Peers 13.25   WDC 0.14 Peers 0.36

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

WDC is trading at a valuation on par with 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 NA Peers 4.03   WDC -79.58 Peers -27.57

Neutral. 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.

Ratio not available.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WDC NA Peers 2.25   WDC -10.83 Peers -1.85

Neutral. 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.

Ratio not available.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WDC significantly trails its peers on the basis of sales growth

 

 

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