AnnualReportAI — Business Intelligence
Financial & Valuation Intelligence™

WESTERN DIGITAL CORP

NASDAQ
WDC
Sector: Technology· Computer Hardware
Current Price
$354.2
Market Cap
$22.91 B
AI Financial Summary

WESTERN DIGITAL CORP (WDC) exhibits a mixed financial profile with strong profitability and growth in PAT and EPS, yet declining revenue and Book Value. The company's valuation appears attractive, indicating potential for long-term value creation despite some financial health concerns and capital allocation challenges.

Business Performance (CAGR)

10 Years
Revenue
-8.3%
PAT
50.8%
EPS
43.9%
Book Value
-10.3%
Free Cash Flow
8.1%

Valuation Snapshot

P/E12.1
P/B4.3
EV/EBITDA14
P/S2.4
Div Yield0.19%

Financial Health

Debt to Equity0.89
Interest Coverage—x
Current Ratio1.18
Cash & Investments$2.11 B

Profitability Metrics

ROE
35.6%
ROCE
13.7%
ROA
13.5%
EBITDA Mgn
19.2%
Op Margin
14.5%
Net Margin
19.8%

Cash Flow Intelligence

Operating Cash Flow$1.69 B
Free Cash Flow$2.06 B
Cash Conversion89.5%
FCF Margin21.7%

Intrinsic Value

Premium
Estimated Intrinsic Value
████████
Current Price$354.2
Margin of Safety██.██%
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Estimated Intrinsic Value & DCF Fair Value are available with Premium plans.

AI Business Verdict

WESTERN DIGITAL CORP demonstrates robust recent profitability and cash flow generation, coupled with an attractive valuation. However, historical revenue decline and book value erosion highlight areas for strategic focus. The significant margin of safety based on intrinsic value suggests potential for long-term value creation if these challenges are effectively managed.

  • Significant recovery in Net Profit and EPS with high CAGR.
  • Robust latest period ROE and ROCE, indicating strong profitability.
  • Positive and growing Free Cash Flow (FCF) CAGR.
  • Valuation appears very attractive based on current price relative to intrinsic value.

Balance Sheet

AI-Powered Analysis
Balance Sheet Strength™
52/100
Adequate

WESTERN DIGITAL CORP has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.

AI Confidence
86%
Stability
57
Flexibility
55
Strength Factors
Liquidity53
Leverage68
Working Capital52
Asset Quality54
Shareholder Strength28
Financial Stability57
Financial Flexibility™
55/100
Adequate

Capacity to fund growth, withstand downturns and return capital.

Total Assets
$14.17 B
▼ 42.9% YoY
Total Liabilities
$8.86 B
▼ 36.6% YoY
Shareholder Equity
$5.31 B
▼ 50.9% YoY
Net Cash Position
-$2.60 B
Monitor
Debt / Equity
0.89x
Manageable
Enterprise Value
$25.51 B
Capital Structure
Assets
$14.17 B
Equity
$5.31 B (37.5%)
Liabilities
$8.86 B (62.5%)
Debt Intelligence™
Debt vs Cash Trend
Debt / Equity0.89x
Interest CoverageNot Available
Debt / EBITDA2.49x
Net Debt$2.60 B
Debt Trend (5Y)-22.6%
Debt MaturityWell Staggered
Liquidity Intelligence™
Current Ratio1.18
Quick Ratio0.87
Cash Ratio0.24
Working Capital$739 M
Operating Cash CoverageAdequate
Short-term LiquidityAdequate
Working Capital Intelligence™
CCC Trend
Receivable Days57
Inventory Days49
Payable DaysNot Available
Cash Conversion Cycle106 days
Asset Quality (% of Total Assets)
Cash & Investments14.9%
Property, Plant & Equip.16.5%
ReceivablesNot Available
InventoryNot Available
GoodwillNot Available
Intangible AssetsNot Available
Other Assets47.7%
Shareholder Strength™
Strength Radar
Book Value CAGR (5Y)-10.3%
Net Worth CAGR (5Y)-7.9%
Retained EarningsWeak
Equity Dilution0.00%
Buyback EfficiencyGood
Dividend Sustain.Strong
Balance Sheet Evolution
Annual
Balance Sheet Risk Monitor
Debt RiskModerate
Liquidity RiskElevated
Working Capital RiskElevated
Refinancing RiskElevated
Asset Quality RiskElevated
Dilution RiskLow
Contingent LiabilityLow
Overall Balance Sheet RiskElevated
Balance Sheet Stress Test™
Economic Slowdown55
Acquisition Capacity59
High Interest Rates55
Dividend Sustainability42
Revenue Decline54
Cash Flow Resilience56
Expansion Capacity44
Overall Resilience Score
52/100
Fragile — Review Risks
AI Balance Sheet Commentary
Overall Assessment
  • WESTERN DIGITAL CORP has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
What Stands Out
  • Balance sheet is functional but shows no standout strengths
Areas To Monitor
  • Tight short-term liquidity cushion
  • Long working capital cycle
  • Large 'other assets' bucket — investigate composition
  • Slow book value compounding
Financial data based on consolidated numbers and TTM · Source: Company Filings, Annual Report AI Analysis · Data as of: 31/03/2025