Western Digital’s fiscal first-quarter revenue rose 55% year over year to $4.4 billion, beating guidance by the widest margin since the SanDisk split. This was entirely driven by pricing. The second-quarter revenue guide was 13% above FactSet consensus.
Demand for data center buildouts is only increasing, driven by long-term structural trends such as AI and the Internet of Things. This could prolong the current upcycle and make it more durable than previous cycles.
The HDD market is commodity-like and cyclical, leaving Western Digital vulnerable to market pricing declines that can shrink the top line and sink margins. In HDD downturns, these stocks can crater.
|
Metric
|
WDC
|
STX
|
MU
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.01 | 43.00 | 12.41 |
Price/Book Value | 15.25 | 43.98 | 7.58 |
Price/Sales | 10.13 | 11.16 | 7.97 |
Price/Cash Flow | 25.50 | 30.33 | 11.13 |
|
Metric
|
WDC
|
STX
|
MU
|
|---|---|---|---|
Quick Ratio | 0.87 | 1.07 | 2.90 |
Current Ratio | 1.43 | 1.67 | 3.31 |
Interest Coverage | 91.30 | 13.89 | 931.07 |
|
Metric
|
WDC
|
STX
|
MU
|
|---|---|---|---|
Return on Assets (Normalized) | 34.53% | 40.17% | 72.26% |
Return on Equity (Normalized) | 61.74% | 551.95% | 102.18% |
Return on Invested Capital (Normalized) | 47.32% | 71.29% | 90.66% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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SNDK
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STX
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P
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LNVGY
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LNVGF
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HPQ
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United States