Western Digital
Through the investors’ lenses
3 of 4 cleared8 of 10 criteria
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 4/4
| Measure | WDC | Checked against | |
|---|---|---|---|
| Owner earnings | $9.38bn | positive | ✓ |
| Return on equity | 106.3% | median 13.8% | ✓ |
| Debt to equity | 0.24x | median 0.70x | ✓ |
| Operating margin | 34.5% | median 19.4% | ✓ |
Passes 4 of 4. These are the measures Warren Buffett published, applied to Western Digital’s own figures — their criteria, not their view of this company. What he looks at, and why →
Benjamin Graham 1/3
| Measure | WDC | Checked against | |
|---|---|---|---|
| Current ratio | 1.33x | 2.00x published | ✗ |
| Long-term debt to working capital | 0.75x | 1.00x published | ✓ |
| Positive earnings, ten years running | 2 yrs | 10 published | ✗ |
Passes 1 of 3. These are the measures Benjamin Graham published, applied to Western Digital’s own figures — their criteria, not their view of this company. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | WDC | Checked against | |
|---|---|---|---|
| Return on capital employed | 40.6% | median 11.9% | ✓ |
Passes 1 of 1. These are the measures Joel Greenblatt published, applied to Western Digital’s own figures — their criteria, not their view of this company. What he looks at, and why →
Peter Lynch 2/2
| Measure | WDC | Checked against | |
|---|---|---|---|
| Debt to equity | 0.24x | median 0.70x | ✓ |
| Net margin | 72.9% | median 13.5% | ✓ |
Passes 2 of 2. These are the measures Peter Lynch published, applied to Western Digital’s own figures — their criteria, not their view of this company. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 2.1% | whyThe figure most screeners publish. |
| Operating cash flow | 4.4% | whyAbsorbs working-capital swings that earnings do not. |
| Free cash flow | 5.0% | whyAfter maintaining the business. |
Spread between highest and lowest: 2.9 percentage points. Same filings, different denominators.
Coverage rating 78 / 100 — Adequate. ? Peer standing 48/50Direction 30/30Stability 0/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2026-07-03 | 5.0% |
| 2025-06-27 | 3.4% |
| 2020-07-03 | 336.2% |
| 2019-06-28 | 21.9% |
| 2018-06-29 | 17.6% |
| 2017-06-30 | 20.1% |
Coverage worsened sharply this year, 3.4% to 5.0%, after no clear trend before it. One year is not a trend, but it is worth knowing which direction the last one moved.
96% of the 48 technology here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.500 ÷ diluted EPS $24.28
- Operating cash flow — dividends paid $174m ÷ operating cash flow $3,929m
- Free cash flow — dividends paid $174m ÷ (operating cash flow $3,929m − capex $418m)
Where the figures came from
- 10-K filed 2026-08-14 · accession 0001628280-26-057139
Every one is public at sec.gov and free to check. That is the point — you should not have to take our word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell us — that is more useful to us than agreement.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
Who else looks like this
Every figure above is computed from Western Digital’s own filing, and every company here is measured the same way. Screen all of them on any of these twelve measures, or on the rules four investors published — free, and nothing you screen leaves your browser.
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