Since hitting $114/share in November 2014, Western Digital’s stock has lost 70% of its value, and it’s trading at levels not seen since 2012. Also, its stock has trailed the S&P 500 over the last 1, 3, and 5 year periods.
What they do:
They design and manufacture data storage devices for the IT industry.
End markets served:
- Client devices (computers and mobile devices)
- Data center devices and solutions
- Client solutions
Note: They also generate license and royalty revenue from each of the three end markets. For more information, see page 6 of their annual report.
- Over 14, 000 patents worldwide.
- Customers include other equipment manufacturers (OEM), internet and social media infrastructure companies, and personal computer and Mac OEMs.
- Its three primary brands are HGST, SanDisk, and WD.
- For HDD (hard disk drives), its competitors are Seagate Technologies ($STX) and Toshiba Electronics.
- For flash, its competitors are Intel ($INTC), Micron ($MU), and Samsung.
To read about their business strategy, start on page five of the annual report.
What's its chart telling us?
- Price is testing the demand (support) zone between $22-$30.
- That zone has held the downside in check the previous three times (blue arrows).
- Note, the rallies from the $22-$30 zone are getting smaller.
|Headquarters||San Jose, CA|
|# of Employees||61,800 (as of 2020)|
|Market Cap.||$10.4 billion|
|TTM Revenue||$16.7 billion|
|KEY FINANCIALS||TTM, $ in millions|
|Net Income Margin||(1.5%)|
|Free Cash Flow||$947.3|
|Free Cash Flow Margin||5.6%|
|Return on Assets||0.9%|
|Return on Invested Capital (ROIC)||1.2%|
|Return on Equity||(2.6%)|