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Western Digital (WDC) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Computer Hardware
A
ExcellentMetricSide Score: 92/100
ProfitabilityProfit30/30
GrowthGrowth17/25
Balance SheetBalance25/25
Cash QualityCash20/20
Price & Volume
Market Cap $184.34B

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions through its computer manufacturers, sales personnel, dealers, distributors, and retailers. The company has a collaboration with Open Quantum Design for the development of quantum error correction technology and related systems to advance reliable quantum computing. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

Moat Signals

Competitive analysis based on 67 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~21.6%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

ROE averages 29.8% but has fluctuated — the competitive advantage may be cyclical or emerging.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Weak Moat

Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.

Risk Signals

Data-driven red flags and warnings across 67 quarters

Some Concerns

Margin Pressure

Healthy

Margins are stable or improving at ~23.9% — no sign of cost or pricing stress.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 1.4x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Healthy

D/E ratio is 0.2 — conservative capital structure with low financial risk.

Revenue Decline

Red Flag

TTM revenue has contracted 42.9% — significant decline indicating deteriorating demand.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Watch

Shares outstanding rose 3.6% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$8.02B
44.5%
Q. Revenue
$3.34B
TTM EBITDA
$3.23B
5.2%
TTM Op. Income
$2.87B
11.7%
Q. Op. Income
$1.19B
TTM Net Income
$6.51B
295.6%
Q. Net Income
$3.21B
EPS
$9.26
Shares Out.
$342.00M
1.7%
$8.02B in TTM revenue declined 44.5% YoY, reaching $3.34B last quarter. TTM EBITDA of $3.23B and TTM operating income of $2.87B shows growth is flowing through. Net income of $6.51B TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
50.2%
26.3%
EBITDA Margin
38.5%
Op. Margin
35.7%
7.6%
Net Margin
96.0%
323.7%
Op. margin of 35.7% is up 2.5% YoY — cost efficiency is improving. Net margin at 96.0% and gross margin of 50.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
28.3x
P/S Ratio
23.0x
P/B Ratio
19.0x
At 28.3x P/E, the stock trades in line with market averages — fairly valued. P/S of 23.0x and P/B of 19.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$15.04B
Cash
$2.05B
Long-Term Debt
$1.58B
Book Value
$9.68B
D/E Ratio
0.2
Debt/EBITDA
1.2
With $15.04B in assets and $1.58B in long-term debt, the D/E of 0.2and book value of $9.68B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$1.12B
Free Cash Flow
$978.00M
158.0%
FCF Margin
12.2%
FCF / Net Income
0.3
FCF of $978.00M on $1.12B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention.

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