WESTERN DIGITAL CORP (WDC) Stock Analysis

Analysis from 10-Q filed 2025-10-31. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 29.9%. FCF margin 24.7%. D/E 0.2x. Source: 10-Q filed 2025-10-31.

Metric	Value	Context
ROIC	29.9%	Above industry average
FCF Margin	24.7%	Strong cash generation
Debt/Equity	0.2x	Conservative leverage

ROIC 29.9% — Top 5% of sector peers. FCF margin 24.7% — Top 25%.

Explore WESTERN DIGITAL CORP: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WDC: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: WESTERN DIGITAL CORP earns 29.9% ROIC, Top 5% in Technology

ROIC TTM 29.9%, sector median 3.9%, Top 5%. DuPont: NOPAT margin 28.0% × asset turnover 0.8x. Gross margin 45.4%. Operating margin 30.3%. Source: 10-Q filed 2025-10-31.

Metric	WDC	Rating	Context
Return on Invested Capital (ROIC)	29.9%	Excellent	Above sector median of 3.9%
Return on Equity (ROE)	99.3%	Excellent	Efficient use of shareholder equity
Gross Margin	45.4%	Good	Strong pricing power
Operating Margin	30.3%	Excellent	Efficient operations

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Cash Flow: WESTERN DIGITAL CORP generates $2.9B FCF at 24.7% margin, positive NaN/8 quarters

FCF TTM $2.9B. FCF margin 24.7%, Top 25%. OCF/Net income 0.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.

Metric	WDC	Rating	Context
Free Cash Flow Margin	24.7%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$2.9B	Good	Positive cash generation
OCF/Net Income	0.5x	Adequate	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: WESTERN DIGITAL CORP at 0.2x leverage

Debt/Equity 0.2x. Net cash $469.0M. Source: 10-Q filed 2025-10-31.

Metric	WDC	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$469.0M	Excellent	Net cash positive

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Valuation: WESTERN DIGITAL CORP trades at 15.8x earnings

P/E 15.8x. EV/Sales 8.8x. FCF yield 2.9%. Source: 10-Q filed 2025-10-31.

Metric	WDC	Rating	Context
P/E Ratio	15.8x	Adequate	Reasonable valuation
EV/Sales	8.8x	Adequate	Growth premium priced in
FCF Yield	2.9%	Adequate	Lower cash yield

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Capital Allocation: WESTERN DIGITAL CORP returns 2.0% shareholder yield

Total shareholder yield 2.0% (buyback 2.0%). Capital returned $2.1B TTM. Source: 10-Q filed 2025-10-31.

Metric	WDC	Rating	Context
Total Shareholder Yield	2.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.0%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$2.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	29.9%	Top 5%	7.7x above
Free Cash Flow Margin	24.7%	Top 25%	3.0x above
Gross Margin	45.4%	Bottom 50%	0.9x below
Operating Margin	30.3%	Top 10%	6.7x above
Return on Equity (ROE)	99.3%	Top 5%	19.7x above
P/E Ratio	15.8x	N/A	-

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Financial Scorecard

Metric	WDC	Rating	Sector Context
Return on Invested Capital (ROIC)	29.9%	Excellent	Top 5% of sector (median: 3.9%)
Free Cash Flow Margin	24.7%	Excellent	Top 25% of sector (median: 8.3%)
Gross Margin	45.4%	Good	Bottom 50% of sector (median: 50.7%)
Debt to Equity Ratio	16.3%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	15.8x	Adequate	Fair value
Free Cash Flow Yield	2.9%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is WESTERN DIGITAL CORP's Return on Invested Capital (ROIC)?

WESTERN DIGITAL CORP (WDC) has a trailing twelve-month Return on Invested Capital (ROIC) of 29.9%. Sector median 3.9%. Source: 10-Q filed 2025-10-31.

Q: What is WESTERN DIGITAL CORP's Free Cash Flow Margin?

WESTERN DIGITAL CORP (WDC) has a free cash flow margin of 24.7%, generating $2.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.

Q: What is WESTERN DIGITAL CORP's P/E ratio and how does it compare to peers?

WESTERN DIGITAL CORP (WDC) trades at a P/E ratio of 15.8x, which is above the sector median of N/A. EV/Sales 8.8x. FCF yield 2.9%. Source: 10-Q filed 2025-10-31.

Q: What is WESTERN DIGITAL CORP's revenue and earnings growth?

WESTERN DIGITAL CORP (WDC) grew revenue by 32.0% year-over-year. EPS +273.9% YoY. Source: 10-Q filed 2025-10-31.

Q: Is WESTERN DIGITAL CORP buying back stock?

WESTERN DIGITAL CORP (WDC) repurchased $2.1 billion of stock over the trailing twelve months. This represents a buyback yield of 2.0%. Source: 10-Q filed 2025-10-31.

Q: How does WESTERN DIGITAL CORP compare to competitors in Technology?

Compared to other companies in Technology, WESTERN DIGITAL CORP (WDC) shows: ROIC 29.9%, sector median 3.9% (Top 5%). FCF margin 24.7%, sector median 8.3% (Top 25%). Gross margin 45.4%, 5.3pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with WESTERN DIGITAL CORP?

No quantitative warning flags fired for WESTERN DIGITAL CORP (WDC) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-31.

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Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.