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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.468
WDC's Cash to Debt is ranked lower than
67% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 4.95 vs. WDC: 1.468 )
WDC' s 10-Year Cash to Debt Range
Min: 0.82   Max: No Debt
Current: 1.47

Equity to Asset 0.345
WDC's Equity to Asset is ranked lower than
80% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.56 vs. WDC: 0.345 )
WDC' s 10-Year Equity to Asset Range
Min: -0.18   Max: 0.65
Current: 0.35

-0.18
0.65
F-Score: 6
Z-Score: 4.19
M-Score: -1.16
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 14.20
WDC's Operating margin (%) is ranked higher than
89% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 3.40 vs. WDC: 14.20 )
WDC' s 10-Year Operating margin (%) Range
Min: -15   Max: 15.5
Current: 14.2

-15
15.5
Net-margin (%) 12.9
WDC's Net-margin (%) is ranked higher than
89% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 2.50 vs. WDC: 12.9 )
WDC' s 10-Year Net-margin (%) Range
Min: -9.6   Max: 14
Current: 12.9

-9.6
14
ROE (%) 21
WDC's ROE (%) is ranked higher than
94% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 4.40 vs. WDC: 21 )
WDC' s 10-Year ROE (%) Range
Min: -1453.2   Max: 63.6
Current: 21

-1453.2
63.6
ROA (%) 11.3
WDC's ROA (%) is ranked higher than
92% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 2.60 vs. WDC: 11.3 )
WDC' s 10-Year ROA (%) Range
Min: -30.5   Max: 21
Current: 11.3

-30.5
21
ROC (Joel Greenblatt) (%) 42.20
WDC's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 8.80 vs. WDC: 42.20 )
WDC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 32.9   Max: 1049.4
Current: 42.2

32.9
1049.4
Revenue Growth (%) 11.5
WDC's Revenue Growth (%) is ranked higher than
89% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: 11.5 )
WDC' s 10-Year Revenue Growth (%) Range
Min: -4.6   Max: 20.8
Current: 11.5

-4.6
20.8
EBITDA Growth (%) 24.4
WDC's EBITDA Growth (%) is ranked higher than
94% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: 24.4 )
WDC' s 10-Year EBITDA Growth (%) Range
Min: -1.6   Max: 103.3
Current: 24.4

-1.6
103.3
EPS Growth (%) 33.4
WDC's EPS Growth (%) is ranked higher than
95% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: 33.4 )
WDC' s 10-Year EPS Growth (%) Range
Min: -5.3   Max: 43.3
Current: 33.4

-5.3
43.3
» WDC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2012

WDC Guru Trades in Q2 2012

Paul Tudor Jones 34,500 sh (New)
Jim Simons 1,636,900 sh (+236.81%)
Jeremy Grantham 387,524 sh (+77.5%)
Steven Romick 3,175,000 sh (+74.93%)
Steven Cohen 65,600 sh (+32.67%)
First Pacific Advisors 8,205,400 sh (+20.83%)
Chuck Royce 406,400 sh (+1.68%)
Robert Rodriguez 2,016,100 sh (unchged)
Joel Greenblatt Sold Out
Ken Heebner Sold Out
Pioneer Investments Sold Out
Charles Brandes 5,661,849 sh (-5.46%)
John Buckingham 27,915 sh (-11.18%)
» More
Q3 2012

WDC Guru Trades in Q3 2012

John Hussman 1,000,000 sh (New)
Steven Romick 3,175,000 sh (unchged)
Robert Rodriguez 2,016,100 sh (unchged)
Jim Simons Sold Out
First Pacific Advisors 8,056,500 sh (-1.81%)
John Buckingham 27,201 sh (-2.56%)
Chuck Royce 378,250 sh (-6.93%)
Charles Brandes 5,120,841 sh (-9.56%)
Jeremy Grantham 328,924 sh (-15.12%)
Paul Tudor Jones 6,300 sh (-81.74%)
Steven Cohen 5,600 sh (-91.46%)
» More
Q4 2012

WDC Guru Trades in Q4 2012

Zeke Ashton 97,500 sh (New)
Whitney Tilson 62,500 sh (New)
David Einhorn 600,000 sh (New)
Joel Greenblatt 72,047 sh (New)
Ken Heebner 515,000 sh (New)
Paul Tudor Jones 283,900 sh (+4406.35%)
Chuck Royce 521,100 sh (+37.77%)
Robert Rodriguez 2,016,100 sh (unchged)
Jeremy Grantham 316,880 sh (unchged)
Steven Cohen Sold Out
Charles Brandes 4,620,895 sh (-9.76%)
John Buckingham 23,231 sh (-14.6%)
First Pacific Advisors 6,662,900 sh (-17.3%)
John Hussman 680,000 sh (-32%)
Steven Romick 1,850,000 sh (-41.73%)
» More
Q1 2013

WDC Guru Trades in Q1 2013

Steven Cohen 19,726 sh (New)
Jim Simons 43,000 sh (New)
RS Investment Management 88,130 sh (New)
David Einhorn 600,000 sh (unchged)
Ken Heebner Sold Out
Steven Romick Sold Out
John Buckingham 22,565 sh (-2.87%)
Chuck Royce 498,700 sh (-4.3%)
Charles Brandes 4,208,303 sh (-8.93%)
Robert Rodriguez 1,469,100 sh (-27.13%)
Jeremy Grantham 207,380 sh (-34.56%)
Whitney Tilson 40,000 sh (-36%)
Joel Greenblatt 37,983 sh (-47.28%)
First Pacific Advisors 3,361,100 sh (-49.55%)
John Hussman 297,000 sh (-56.32%)
Zeke Ashton 19,700 sh (-79.79%)
Paul Tudor Jones 6,700 sh (-97.64%)
» More
» Details

Insider Trades

Latest Guru Trades with WDC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Robert Rodriguez 2013-03-31 Reduce -27.13%2.79%$41.98 - $50.715 $ 62.332%1469100
John Hussman 2013-03-31 Reduce -56.32%0.43%$41.98 - $50.715 $ 62.332%297000
Joel Greenblatt 2013-03-31 Reduce -47.28%0.09%$41.98 - $50.715 $ 62.332%37983
John Hussman 2012-12-31 Reduce -32%0.3%$33.41 - $42.16 $ 62.371%680000
Joel Greenblatt 2012-12-31 New Buy0.18%$33.41 - $42.16 $ 62.371%72047
John Hussman 2012-09-30 New Buy0.93%$29.91 - $45.37 $ 62.363%1000000
Joel Greenblatt 2012-06-30 Sold Out 0.05%$28.96 - $44.09 $ 62.373%0
Robert Rodriguez 2012-03-31 Add 4.85%0.43%$30.98 - $42.6 $ 62.375%2016100
John Hussman 2012-03-31 Sold Out 0.26%$30.98 - $42.6 $ 62.375%0
Joel Greenblatt 2012-03-31 Reduce -52.94%0.05%$30.98 - $42.6 $ 62.375%12492
John Hussman 2011-12-31 Reduce -23.56%0.07%$24.44 - $32.38 $ 62.3121%516000
George Soros 2011-09-30 Sold Out 0.509%$25.96 - $38.52 $ 62.397%0
John Hussman 2011-09-30 New Buy0.28%$25.96 - $38.52 $ 62.397%675000
Joel Greenblatt 2011-09-30 New Buy0.13%$25.96 - $38.52 $ 62.397%31892
George Soros 2011-06-30 Add 74.1%0.22%$33.47 - $41.24 $ 62.369%994849
Robert Rodriguez 2011-06-30 Add 2.3%0.17%$33.47 - $41.24 $ 62.369%1922800
Charles Brandes 2011-06-30 Add 8.31%0.14%$33.47 - $41.24 $ 62.369%7020343
Charles Brandes 2011-03-31 Add 40.71%0.48%$29.44 - $37.71 $ 62.384%6481640
George Soros 2011-03-31 Add 331.67%0.19%$29.44 - $37.71 $ 62.384%571414
Joel Greenblatt 2011-03-31 Sold Out $29.44 - $37.71 $ 62.384%0
Joel Greenblatt 2010-12-31 New Buy0.3%$27.9 - $35.68 $ 62.392%26999
Charles Brandes 2010-12-31 Add 20.74%0.17%$27.9 - $35.68 $ 62.392%4606535
George Soros 2010-12-31 Add 1688.81%0.06%$27.9 - $35.68 $ 62.392%132372
David Dreman 2010-12-31 Sold Out $27.9 - $35.68 $ 62.392%0
Robert Rodriguez 2010-09-30 Add 60.7%2.58079e+06%$23.62 - $32.73 $ 62.3128%1879600
Charles Brandes 2010-09-30 New Buy0.67%$23.62 - $32.73 $ 62.3128%3815333
George Soros 2010-09-30 Reduce -36.21%$23.62 - $32.73 $ 62.3128%7400
David Dreman 2010-09-30 Reduce -23.17%$23.62 - $32.73 $ 62.3128%7053
Robert Rodriguez 2010-06-30 Add 71.04%2.23%$30.67 - $44.71 $ 62.366%1169600
John Hussman 2010-06-30 Sold Out 0.45%$30.67 - $44.71 $ 62.366%0
David Dreman 2010-06-30 Add 56.12%$30.67 - $44.71 $ 62.366%9180
David Dreman 2010-03-31 New Buy0.01%$37.99 - $46.5 $ 62.351%5880
George Soros 2010-03-31 Add 58.75%$37.99 - $46.5 $ 62.351%12700
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Western Digital Corporation

FPA Capital Comments on Western Digital - Jul 25, 2012

From FPA Capital's second-quarter commentary:

Fears of a slowdown and the uncertainties in Europe pressured our technology stocks. Western Digital was in addition hurt by concerns of excess supply of hard drives due to a recovery from the floods in Thailand. We believe these concerns are short sighted and that the earning power of Western Digital (WDC) has been greatly enhanced by its merger with Hitachi Global Storage. This combination should drive sizable synergies and the consolidated industry is likely to exhibit better price discipline going forward. Western Digital is selling at below 7x earnings and 3.5x EBITDA. This is before the expected synergies from its merger with Hitachi, which we believe will be substantial.
Check out FPA Capital latest stock trades

FPA Capital Fund on Western Digital - May 28, 2012

Western Digital has been in the portfolio since 2007 when we initially purchased the stock in the mid teens. We aggressively added to the position during the financial crisis when the stock traded as low as $10. WDC, which closed at $41.39, along with Seagate Technology, dominates the Hard Disk Drive (HDD) business. WDC has roughly 40% market share of an approximate 700 million unit world-wide market. During the first quarter, WDC closed its deal to purchase Hitachi’s HDD business for $4.8 billion. We believe this deal will add substantial earnings and free cash flow to the company over the next couple of years. Consensus earnings estimates for the combined company recently were increased to over $8 for WDC’s fiscal (June) year end 2013.
Check out latest stock trades

Top Ranked Articles about Western Digital Corporation

FPA Crescent Fund Steven Romick's First Quarter Sells Steven Romick - FPA Crescent Fund Steven Romick's First Quarter Sells
The "Great Investor" Steven Romick, Investment Officer of the First Pacific Advisor’s Crescent Fund, was actively selling in first quarter 2013. Romick’s Crescent Fund is currently valued at $6.1 billion and holds 57 stocks, two of them new. The fund has a quarter-over-quarter turnover of 2%. Guru Steven Romick is in the top 1% of money managers. Read more...
FPA Capital Fund Sells Six Robert Rodriguez - FPA Capital Fund Sells Six
As of April 10, 2013, the portfolio of First Pacific Advisors (FPA) Capital Fund, managed by Dennis Bryan and Rikard Ekstrand, is valued at $8.5 billion and holds 27 stocks, two of them new. The fund has a quarter-over-quarter turnover of 3%. As of quarter ending March 31, 2013, FPA reduced its position in six stocks: Read more...
Bob Rodriguez’s Top 3 Undervalued Predictable Stocks Robert Rodriguez - Bob Rodriguez’s Top 3 Undervalued Predictable Stocks
Guru Robert Rodriguez, who heads First Pacific Advisors’ FPA Capital Fund manages about $830 million through his 25-stock portfolio. Read more...
Steven Romick’s Top Growth Predictable Stocks Steven Romick - Steven Romick’s Top Growth Predictable Stocks
As the co-managing partner of Los Angeles-based First Pacific Advisors LLC, Steven Romick heads the firm’s Crescent Fund, through a contrarian value strategy. Romick has helped deliver about 125 percent cumulative return over the last 10 years, beating the S&P 500 by a long shot. Read more...
FPA Capital Comments on Western Digital
FPA Capital Fund on Western Digital
Western Digital has been in the portfolio since 2007 when we initially purchased the stock in the mid teens. We aggressively added to the position during the financial crisis when the stock traded as low as $10. WDC, which closed at $41.39, along with Seagate Technology, dominates the Hard Disk Drive (HDD) business. WDC has roughly 40% market share of an approximate 700 million unit world-wide market. During the first quarter, WDC closed its deal to purchase Hitachi’s HDD business for $4.8 billion. We believe this deal will add substantial earnings and free cash flow to the company over the next couple of years. Consensus earnings estimates for the combined company recently were increased to over $8 for WDC’s fiscal (June) year end 2013. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 12.40
WDC's P/E(ttm) is ranked higher than
91% of the 1353 Companies
in the Global Data Storage industry.

( Industry Median: 18.30 vs. WDC: 12.40 )
WDC' s 10-Year P/E(ttm) Range
Min: 2.33   Max: 24.14
Current: 12.4

2.33
24.14
P/B 1.96
WDC's P/B is ranked lower than
69% of the 1848 Companies
in the Global Data Storage industry.

( Industry Median: 1.24 vs. WDC: 1.96 )
WDC' s 10-Year P/B Range
Min: 0.81   Max: 111
Current: 1.96

0.81
111
P/S 1.33
WDC's P/S is ranked lower than
53% of the 1882 Companies
in the Global Data Storage industry.

( Industry Median: 0.81 vs. WDC: 1.33 )
WDC' s 10-Year P/S Range
Min: 0.18   Max: 1.34
Current: 1.33

0.18
1.34
PFCF 9.53
WDC's PFCF is ranked higher than
80% of the 1077 Companies
in the Global Data Storage industry.

( Industry Median: 14.92 vs. WDC: 9.53 )
WDC' s 10-Year PFCF Range
Min: 2.7   Max: 89.88
Current: 9.53

2.7
89.88
EV-to-EBIT 8.52
WDC's EV-to-EBIT is ranked higher than
90% of the 1386 Companies
in the Global Data Storage industry.

( Industry Median: 14.28 vs. WDC: 8.52 )
WDC' s 10-Year EV-to-EBIT Range
Min: 1.5   Max: 157.6
Current: 8.52

1.5
157.6
PEG 0.87
WDC's PEG is ranked higher than
77% of the 356 Companies
in the Global Data Storage industry.

( Industry Median: 1.52 vs. WDC: 0.87 )
WDC' s 10-Year PEG Range
Min: 0.06   Max: 0.8
Current: 0.87

0.06
0.8
Shiller P/E 14.11
WDC's Shiller P/E is ranked lower than
100% of the Companies
in the Global Data Storage industry.

( Industry Median: vs. WDC: 14.11 )
WDC' s 10-Year Shiller P/E Range
Min: 5.09   Max: 260.83
Current: 14.11

5.09
260.83

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.20
WDC's Dividend Yield is ranked higher than
57% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.77 vs. WDC: 1.20 )
WDC' s 10-Year Dividend Yield Range
Min: 0.6   Max: 1.57
Current: 1.2

0.6
1.57
Yield on cost (5-Year) 1.20
WDC's Yield on cost (5-Year) is ranked higher than
58% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.74 vs. WDC: 1.20 )
WDC' s 10-Year Yield on cost (5-Year) Range
Min: 0.6   Max: 1.57
Current: 1.2

0.6
1.57
Share Buyback Rate -2
WDC's Share Buyback Rate is ranked lower than
78% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: -2 )
WDC' s 10-Year Share Buyback Rate Range
Min: -0.3   Max: -13.8
Current: -2

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 6.4
WDC's Price/Net Current Asset Value is ranked higher than
54% of the 1704 Companies
in the Global Data Storage industry.

( Industry Median: 7.00 vs. WDC: 6.4 )
WDC' s 10-Year Price/Net Current Asset Value Range
Min: 3.2   Max: 9.6
Current: 6.4

3.2
9.6
Price/Tangible Book 3
WDC's Price/Tangible Book is ranked lower than
81% of the 1816 Companies
in the Global Data Storage industry.

( Industry Median: 1.30 vs. WDC: 3 )
WDC' s 10-Year Price/Tangible Book Range
Min: 1.5   Max: 100
Current: 3

1.5
100
Price/DCF (Projected) 0.8
WDC's Price/DCF (Projected) is ranked higher than
83% of the 394 Companies
in the Global Data Storage industry.

( Industry Median: 1.20 vs. WDC: 0.8 )
WDC' s 10-Year Price/DCF (Projected) Range
Min: 0.4   Max: 3.3
Current: 0.8

0.4
3.3
Price/Median PS Value 1.6
WDC's Price/Median PS Value is ranked lower than
66% of the 1785 Companies
in the Global Data Storage industry.

( Industry Median: 1.10 vs. WDC: 1.6 )
WDC' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.3
Current: 1.6

0.4
1.3
Price/Peter Lynch Fair Value 0.8
WDC's Price/Peter Lynch Fair Value is ranked higher than
86% of the 181 Companies
in the Global Data Storage industry.

( Industry Median: 1.10 vs. WDC: 0.8 )
WDC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.2   Max: 0.5
Current: 0.8

0.2
0.5
Price/Graham Number 1.2
WDC's Price/Graham Number is ranked higher than
54% of the 1322 Companies
in the Global Data Storage industry.

( Industry Median: 1.10 vs. WDC: 1.2 )
WDC' s 10-Year Price/Graham Number Range
Min: 0.6   Max: 1.8
Current: 1.2

0.6
1.8
Earnings Yield (Greenblatt) 11.70
WDC's Earnings Yield (Greenblatt) is ranked higher than
92% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 4.50 vs. WDC: 11.70 )
WDC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 67.5
Current: 11.7

0.6
67.5
Forward Rate of Return (Yacktman) 14.38
WDC's Forward Rate of Return (Yacktman) is ranked higher than
96% of the 1887 Companies
in the Global Data Storage industry.

( Industry Median: 0.00 vs. WDC: 14.38 )
WDC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -16.8   Max: 68.6
Current: 14.38

-16.8
68.6

Business Description

Western Digital Corporation was founded in 1970. The Company is a Delaware Corporation. It is a developer and manufacturer of storage products that enable people to create, manage, experience and preserve digital content. It designs and makes storage devices, networking equipment and home entertainment products under the WD, HGST and G-Technology brands. It serves each of the main markets addressing storage opportunities — enterprise and cloud data centers, client, consumer electronics, backup, the internet and other emerging markets such as automotive and home and small office networking. The Company operates its global business through two independent subsidiaries due to regulatory requirements—WD and HGST, both long-time innovators in the storage industry. Its main products are hard drives that use one or more rotating magnetic disks ('magnetic media') to store and allow fast access to data. Hard drives are today's main storage medium for digital content. Its hard drives are used in desktop and notebook computers, corporate and multiple types of data centers, home entertainment equipment and stand-alone consumer storage devices. The Company offers a line of storage devices. Its hard drives currently include 3.5-inch and 2.5-inch form factors, capacities ranging from 30 gigabytes ('GB') to 4 terabytes ('TB'), nominal rotation speeds up to 15,000 revolutions per minute ('RPM'), and interfaces such as Advanced Technology Attachment ('ATA') and Serial Attached SCSI (Small Computer System Interface) ('SAS'). In addition, it offer a family of hard drives specifically designed to consume substantially less power than standard drives, utilizing its WD GreenPower Technologytm. Its solid-state drives currently include 2.5-inch, mSATA, MO-297 and CompactFlash form factors, capacities ranging from 128 MB to 400 GB, and interfaces such as SAS, Serial Advanced Technology Attachment ('SATA') and Parallel Advanced Technology Attachment ('PATA'). It also participate in the mobile computing market of smart phones and tablets with standalone Western Digital software applications such as WD Photos and WD2go for iOS, Android and Windows Phone platforms. Its other products include solid-state drives, home entertainment and networking products and software applications for smart phones and tablets. It has one of the industry's patent portfolios with more than 6,000 active patents worldwide. It maintains sales offices in selected parts of the world including the major geographies of the Americas, Asia Pacific, Europe and the Middle East. It use a broad group of distributors to sell its products to non-direct customers such as small computer and CE manufacturers, dealers, systems integrators, online retailers and other resellers. It sells its products directly to a select group of major retailers such as computer superstores, warehouse clubs, online retailers, and computer electronics stores, and authorize sales through distributors to smaller ret
Company Website
SEC Reports
Industry: Data Storage
Compare:STX, EMC, NTAP, SNDK, STEC
Traded in other countries:WDC.Germany

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