WDCWestern Digital
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (0.9×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 84% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WDC?
Western Digital earns 47% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 38 points above what the capital costs: growth creates value
- Operating margin
- 39%
Operating margin · Computer Hardware median 2.9% · 12 months to Q1 2027
- Cash conversion
- 0.90×
Cash conversion · 1.06× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 7.2% |
| FY2022 | 13% |
| FY2023 | −8.8% |
| FY2024 | −6.4% |
| FY2025 | 25% |
| FY2026 | 34% |
Details›
- Gross margin12 months to Q1 2027
- 53%
- Operating margin12 months to Q1 2027
- 39%
- Net margin12 months to Q1 2027
- 69%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 7.9%
- Revenue, trailing twelve months
- $14.5B
- Free cash flow, trailing twelve months
- $4.29B
- Net income, trailing twelve months
- $10.0B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 47%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from WDC and who it buys from, as the companies report it.
- Customer one16%
Share of revenue · FY2026 10-K
- Customer two15%
Share of revenue · FY2026 10-K
- Customer three13%
Share of revenue · FY2026 10-K
- Top ten customers73%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; WDC’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Computer Hardware
The closest names by size in the same industry