Is Western Digital Stock a Good Investment?
Western Digital Investment Advice | WDC |
- Examine Western Digital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Western Digital's leadership team and their track record. Good management can help Western Digital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Technology Hardware, Storage & Peripherals space and any emerging trends that could impact Western Digital's business and its evolving consumer preferences.
- Compare Western Digital's performance and market position to its competitors. Analyze how Western Digital is positioned in terms of product offerings, innovation, and market share.
- Check if Western Digital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Western Digital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Western Digital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Western Digital is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Western Digital Stock
Researching Western Digital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company outstanding shares are owned by institutional investors. The book value of Western Digital was at this time reported as 33.65. The company last dividend was issued on the 2nd of April 2020. Western Digital had 2:1 split on the 4th of June 1997.
To determine if Western Digital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Western Digital's research are outlined below:
| The company reported the last year's revenue of 13 B. Reported Net Loss for the year was (798 M) with profit before taxes, overhead, and interest of 5.87 B. | |
| Western Digital has about 2.05 B in cash with (294 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.45. | |
| Western Digital has a poor financial position based on the latest SEC disclosures | |
| Over 97.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from independent.co.uk: These PS5 Black Friday deals include a rare PlayStation 5 Pro offer |
Western Digital Quarterly Liabilities And Stockholders Equity |
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Western Digital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Western Digital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Western Digital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of May 2024 Upcoming Quarterly Report | View | |
| 29th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 29th of July 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Western Digital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Western Digital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-01-24 | 2001-12-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2003-07-24 | 2003-06-30 | 0.19 | 0.21 | 0.02 | 10 | ||
2001-07-25 | 2001-06-30 | -0.07 | -0.05 | 0.02 | 28 | ||
2001-04-26 | 2001-03-31 | -0.04 | -0.02 | 0.02 | 50 | ||
2000-07-27 | 2000-06-30 | -0.17 | -0.19 | -0.02 | 11 | ||
1996-04-18 | 1996-03-31 | 0.19 | 0.21 | 0.02 | 10 | ||
2005-07-28 | 2005-06-30 | 0.24 | 0.27 | 0.03 | 12 | ||
2004-10-25 | 2004-09-30 | 0.11 | 0.14 | 0.03 | 27 |
Know Western Digital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Western Digital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Western Digital backward and forwards among themselves. Western Digital's institutional investor refers to the entity that pools money to purchase Western Digital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Barclays Plc | 2024-06-30 | 6.3 M | Norges Bank | 2024-06-30 | 5.9 M | Ameriprise Financial Inc | 2024-06-30 | 5.5 M | Millennium Management Llc | 2024-06-30 | 5 M | Alliancebernstein L.p. | 2024-06-30 | 4.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 3.7 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 3.7 M | Two Sigma Advisers, Llc | 2024-06-30 | 3.7 M | Amvescap Plc. | 2024-06-30 | 3.3 M | Vanguard Group Inc | 2024-09-30 | 41 M | Blackrock Inc | 2024-06-30 | 28.1 M |
Western Digital's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 25.23 B.Market Cap |
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Western Digital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.06) | (0.12) | |
| Return On Capital Employed | (0.02) | (0.07) | |
| Return On Assets | (0.03) | (0.07) | |
| Return On Equity | (0.07) | (0.16) |
Determining Western Digital's profitability involves analyzing its financial statements and using various financial metrics to determine if Western Digital is a good buy. For example, gross profit margin measures Western Digital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Western Digital's profitability and make more informed investment decisions.
Western Digital's Earnings Breakdown by Geography
Please note, the presentation of Western Digital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Western Digital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Western Digital's management manipulating its earnings.
Evaluate Western Digital's management efficiency
Western Digital has Return on Asset of 0.0404 % which means that on every $100 spent on assets, it made $0.0404 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0332 %, implying that it generated $0.0332 on every 100 dollars invested. Western Digital's management efficiency ratios could be used to measure how well Western Digital manages its routine affairs as well as how well it operates its assets and liabilities. As of November 30, 2024, Return On Tangible Assets is expected to decline to -0.12. In addition to that, Return On Capital Employed is expected to decline to -0.07. At present, Western Digital's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 1.6 B, whereas Total Current Assets are forecasted to decline to about 4.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.89 | 2.75 | |
| Tangible Book Value Per Share | 2.87 | (29.06) | |
| Enterprise Value Over EBITDA | 93.38 | (42.77) | |
| Price Book Value Ratio | 2.28 | 1.11 | |
| Enterprise Value Multiple | 93.38 | (42.77) | |
| Price Fair Value | 2.28 | 1.11 | |
| Enterprise Value | 3.4 B | 3.5 B |
Management at Western Digital focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta 1.394 |
Basic technical analysis of Western Stock
As of the 30th of November, Western Digital maintains the Downside Deviation of 1.96, market risk adjusted performance of 0.178, and Mean Deviation of 1.77. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Western Digital, as well as the relationship between them.Western Digital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Western Digital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Western Digital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Western Digital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Western Digital's Outstanding Corporate Bonds
Western Digital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Western Digital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Western bonds can be classified according to their maturity, which is the date when Western Digital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Western Digital 475 Corp BondUS958102AM75 | View | |
| WDC 285 01 FEB 29 Corp BondUS958102AQ89 | View | |
| WDC 31 01 FEB 32 Corp BondUS958102AR62 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Western Digital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Western Digital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0938 | |||
| Market Risk Adjusted Performance | 0.178 | |||
| Mean Deviation | 1.77 | |||
| Semi Deviation | 1.74 | |||
| Downside Deviation | 1.96 | |||
| Coefficient Of Variation | 877.61 | |||
| Standard Deviation | 2.31 | |||
| Variance | 5.33 | |||
| Information Ratio | 0.0543 | |||
| Jensen Alpha | 0.0608 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0641 | |||
| Treynor Ratio | 0.168 | |||
| Maximum Drawdown | 11.83 | |||
| Value At Risk | (2.94) | |||
| Potential Upside | 4.61 | |||
| Downside Variance | 3.83 | |||
| Semi Variance | 3.03 | |||
| Expected Short fall | (2.02) | |||
| Skewness | 0.4822 | |||
| Kurtosis | 0.2839 |
| Risk Adjusted Performance | 0.0938 | |||
| Market Risk Adjusted Performance | 0.178 | |||
| Mean Deviation | 1.77 | |||
| Semi Deviation | 1.74 | |||
| Downside Deviation | 1.96 | |||
| Coefficient Of Variation | 877.61 | |||
| Standard Deviation | 2.31 | |||
| Variance | 5.33 | |||
| Information Ratio | 0.0543 | |||
| Jensen Alpha | 0.0608 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | 0.0641 | |||
| Treynor Ratio | 0.168 | |||
| Maximum Drawdown | 11.83 | |||
| Value At Risk | (2.94) | |||
| Potential Upside | 4.61 | |||
| Downside Variance | 3.83 | |||
| Semi Variance | 3.03 | |||
| Expected Short fall | (2.02) | |||
| Skewness | 0.4822 | |||
| Kurtosis | 0.2839 |
Consider Western Digital's intraday indicators
Western Digital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Western Digital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Western Digital Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 25th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Western Stock media impact
Far too much social signal, news, headlines, and media speculation about Western Digital that are available to investors today. That information is available publicly through Western media outlets and privately through word of mouth or via Western internal channels. However, regardless of the origin, that massive amount of Western data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Western Digital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Western Digital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Western Digital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Western Digital alpha.
Western Digital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Western Digital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Western Digital Historical Investor Sentiment
Investor biases related to Western Digital's public news can be used to forecast risks associated with an investment in Western. The trend in average sentiment can be used to explain how an investor holding Western can time the market purely based on public headlines and social activities around Western Digital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Western Digital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Western Digital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Western Digital news discussions. The higher the estimate score, the more favorable the investor's outlook on Western Digital.
Western Digital Corporate Management
| David Goeckeler | CEO Director | Profile | |
| Gene Zamiska | Senior Officer | Profile | |
| David Tang | Senior Marketing | Profile | |
| Robert Soderbery | Executive Business | Profile |
Already Invested in Western Digital?
The danger of trading Western Digital is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Western Digital is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Western Digital. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Western Digital is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Western Digital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Western Digital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Western Digital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Western Digital Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Western Digital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For information on how to trade Western Stock refer to our How to Trade Western Stock guide.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Western Digital. If investors know Western will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Western Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.96) | Earnings Share 0.91 | Revenue Per Share 43.315 | Quarterly Revenue Growth (0.41) | Return On Assets 0.0404 |
The market value of Western Digital is measured differently than its book value, which is the value of Western that is recorded on the company's balance sheet. Investors also form their own opinion of Western Digital's value that differs from its market value or its book value, called intrinsic value, which is Western Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Western Digital's market value can be influenced by many factors that don't directly affect Western Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Western Digital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Western Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Western Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.