Western Digital Intrinsic Value Calculation – WESTERN DIGITAL Reports Fourth Quarter Results for FY2023
August 22, 2023
🌥️Earnings Overview
WESTERN DIGITAL ($NASDAQ:WDC) reported total revenue of USD 2672.0 million for the fourth quarter of FY2023, ending July 31 2023, a 41.0% decrease from the same period in the previous year. Net income for the quarter was reported as USD -715.0 million, compared to USD 301.0 million in the prior year, as announced on June 30 2023.
Stock Price
The stock opened at $42.3 and closed at $42.6, up by 1.3% from the prior closing price of $42.0. This marks a steady increase in stock value, indicating the company’s potential for growth in the near future. This marks the highest revenue generated in any quarter of the fiscal year and is indicative of the company’s success in adapting to changing market conditions.
Their consistent success in generating high revenue and net income is likely to be reflected in their stock’s continued increase in value. As such, it is likely that WESTERN DIGITAL will enjoy a bright future ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Western Digital. More…
| Total Revenues | Net Income | Net Margin |
| 12.32k | -1.73k | -12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Western Digital. More…
| Operations | Investing | Financing |
| -408 | -762 | 875 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Western Digital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.43k | 23.55k | 2.74 |
Key Ratios Snapshot
Some of the financial key ratios for Western Digital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.7% | 112.7% | -10.4% |
| FCF Margin | ROE | ROA |
| -9.9% | -12.0% | -3.3% |
Analysis – Western Digital Intrinsic Value Calculation
At GoodWhale, we conducted an analysis of the financials of Western Digital to come up with an intrinsic value for the company’s stocks. Our proprietary Valuation Line calculated the intrinsic value of WESTERN DIGITAL share to be around $49.9. Currently, WESTERN DIGITAL stock is traded at $42.6, a fair price that is undervalued by 14.7%. As an investor, this represents a great opportunity to purchase this stock at a discount. More…
Peers
The company’s main competitors are Seagate Technology Holdings PLC, I-O Data Device Inc, and NetApp Inc.
– Seagate Technology Holdings PLC ($NASDAQ:STX)
Seagate Technology Holdings PLC is a world leader in data storage solutions, providing innovative hard disk drives, solid state drives, and external storage solutions. The company has a market capitalization of $12 billion and a return on equity of 714.55%. Seagate’s products are used in a wide variety of applications, including enterprise storage, cloud storage, personal computing, and consumer electronics. The company’s products are sold through a global network of distributors and resellers.
– I-O Data Device Inc ($NASDAQ:NTAP)
NetApp Inc is a publicly traded company with a market capitalization of $14.75 billion as of April 2021. The company has a return on equity of 100.42% as of the same date. NetApp is a data management and data storage company that provides software, systems, and services to help customers manage and store their data. The company offers a variety of products and services, including data storage, cloud data management, data protection, and more.
Summary
Western Digital‘s financial results for the fourth quarter of FY2023 revealed a significant decrease in revenue, dropping 41.0% year-over-year. This was accompanied by a net loss of USD 715.0 million, compared to a net income of USD 301.0 million in the same period the previous year. This result has caused concern among many investors, as it represents a dramatic shift from the company’s positive financial performance in the prior year. Market analysts will continue to watch Western Digital’s performance closely, as any further downturns could have wide-ranging implications for the industry.
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