Fundamental analysis · SEC EDGAR · TTM through 03/04/2026

Fundamental analysis of Western Digital Corp

WDC · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

89

out of 100

Western Digital Corp runs like a cash machine: it converts about 24.7% of revenue into free cash flow and holds a 55.3% net margin, though it grows at a measured pace. On fundamental quality it scores 89 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Western Digital makes high-capacity hard drives (HDDs) for data centers, after spinning off its flash business (SanDisk). The HDD looked doomed… until AI exploded the need to store oceans of cheap data.

What will shape its future

  • Data-center mass-storage demand (AI keeps EVERYTHING).
  • The de facto duopoly with Seagate, bringing new pricing rationality to the sector.
  • The storage cycle, historically as brutal as memory's.

Breakdown by area

I.Growth
85

EPS growth: 47.4% · Revenue growth: -5.9%

II.Profitability
88

Net margin: 55.3% · ROE: 67.3% · ROIC: 35.9%

III.Financial health
95

Net debt/EBITDA: -0.12x · FCF: 24.7%

Source: SEC EDGAR · TTM through 03/04/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 97%
ROEbeats 89%
Growthbeats 2%
Cash generationbeats 59%
Less debtbeats 78%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Western Digital Corp strengths

  • Exceptional net margin (55.3%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (47.4% annualized).
  • Solid return on capital: its ROE (67.3%) is inflated by buybacks, but ROIC —which strips that out— is 35.9%.
  • Excellent free-cash-flow generation (FCF margin of 24.7%): profit turns into real cash.

Western Digital Corp risks and weaknesses

  • Declining revenue (-5.9% annualized).
  • Erratic free cash flow, with several years in the red.

Western Digital Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202016,736-2501776,527
202116,9228217525,355
202218,7931,5467584,695
20236,255-1,684-1,2295,047
20246,317-798-7815,883
20259,5201,8891,2792,597

Between 2020 and 2025, revenue went from $16,736M to $9,520M (-43%) and net income went from -$250M to $1,889M (+856%). It has also reduced its net debt over the period.

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended April 3, 2026, versus the nine months ended March 28, 2025 (SEC filings):

  • Revenue+32.6%
  • Net income+287.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.1

per share, yearly

2.3% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Western Digital Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Western Digital Corp a good company to invest in?

In terms of business quality, Western Digital Corp scores 89 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Western Digital Corp a profitable company?

Very. Western Digital Corp shows a net margin of 55.3% and an ROE of 67.3%, typical of a highly profitable business.

Does Western Digital Corp have a lot of debt?

No. Western Digital Corp has a net cash position: more cash than debt.

Is Western Digital Corp growing?

Its revenue has fallen 5.9% annualized in recent years.

Does Western Digital Corp generate cash?

Yes. It converts about 24.7% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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