SanDisk Corp (SNDK) AI Stock Analysis

• Market Cap: $6.90B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.29
• Shares Outstanding: 145,805,540
• 10 Day Avg. Volume: 2,776,565
• 30 Day Avg. Volume: 2,203,558
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: -4.18
• 1Y Price Target: $57.45
• Price Target Upside: 18.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 47 Neutral
• Price Target: $41.00 ▼(-15.36% Downside)

SanDisk Corp's overall stock score reflects its current challenges. The most significant factor is the weak financial performance, with ongoing losses and negative cash flows. Technical analysis suggests potential short-term weakness, but valuation concerns due to a lack of data also weigh heavily. Without earnings call or corporate events data, the score is primarily driven by financial and technical considerations.

Positive Factors

Earnings

SanDisk posted upside results for the June quarter and guided higher for the September quarter, indicating strong performance and future expectations.

Financial Performance

SanDisk's reported net non-GAAP income exceeded investor expectations, showing better-than-expected financial performance.

Partnerships

SanDisk is working on a qualification with a second major hyperscale customer, indicating potential for future growth and partnerships.

Negative Factors

Consumer Spending

Analyst remains cautious given weaker PC refresh vs expectations and a weaker consumer spending environment.

Market Growth

Growth lags what is seen elsewhere, which has been a pattern for the last few quarters.

Startup Costs

Startup costs for the new BICS 8 technology are increasing slightly faster than expected.

SanDisk Corp Business Overview & Revenue Model

Company Description

SanDisk Corp, a subsidiary of Western Digital Corporation, is a leading global provider of flash memory storage solutions. The company specializes in producing a wide range of products, including solid-state drives (SSDs), USB flash drives, and memory cards, catering to both consumer electronics and enterprise applications. SanDisk's products are widely used in smartphones, tablets, digital cameras, and data centers, as well as in various embedded storage solutions for industrial and automotive sectors.

How the Company Makes Money

SanDisk Corp generates revenue primarily through the sale of its flash memory storage products. The company's key revenue streams include consumer electronics, where it supplies memory cards and USB flash drives to retail customers, and enterprise solutions, offering SSDs and flash storage systems to data centers and IT infrastructures. Additionally, SanDisk benefits from strategic partnerships and collaborations with major technology companies, enhancing its market reach and product offerings. Licensing agreements and technology partnerships also contribute to revenue, allowing SanDisk to leverage its intellectual property in the flash memory industry.

SanDisk Corp Financial Statement Overview

Summary

SanDisk Corp's financial performance presents a mixed picture. Despite improvements in operational efficiency and a strong equity position, the company faces persistent net losses and negative cash flows. The company needs to address profitability issues and improve cash flow management.

Income Statement

SanDisk Corp has faced challenges with declining revenue and profitability. The gross profit margin improved from 7.1% to 16.1%, showing some operational efficiency gains. However, the net profit margin remains negative at -10.1%, indicating ongoing losses. Revenue growth was 9.5% annually, but still low compared to historical performance. EBIT and EBITDA margins are negative, reflecting operational struggles.

Balance Sheet

SanDisk's balance sheet shows a robust equity position with an equity ratio of 82.0%. The debt-to-equity ratio is low at 0.09, suggesting manageable leverage. However, the return on equity is negative at -6.1%, indicating the company's inability to generate profits from shareholders’ equity.

Cash Flow

The company experienced a significant improvement in free cash flow from -932M to -475M, yet it remains negative. The operating cash flow to net income ratio is unfavorable at 0.46, showing that cash generation from core operations is weak. Despite some positive investing cash flow, overall cash flow management needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.60B	6.66B	6.09B	9.75B
Gross Profit	880.00M	1.07B	430.00M	3.24B
EBITDA	-1.79B	-220.00M	-847.00M	1.74B
Net Income	-1.96B	-672.00M	-2.14B	1.06B
Balance Sheet
Total Assets	12.98B	13.51B	13.82B	15.76B
Cash, Cash Equivalents and Short-Term Investments	1.48B	328.00M	292.00M	335.00M
Total Debt	1.85B	996.00M	1.02B	950.00M
Total Liabilities	3.77B	2.42B	2.38B	2.78B
Stockholders Equity	9.22B	11.08B	11.44B	12.98B
Cash Flow
Free Cash Flow	-145.00M	-475.00M	-932.00M	741.00M
Operating Cash Flow	-56.00M	-309.00M	-713.00M	1.15B
Investing Cash Flow	563.00M	210.00M	-189.00M	-472.00M
Financing Cash Flow	174.00M	136.00M	860.00M	-650.00M

SanDisk Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	74 Outperform	$20.07B	23.49	17.67%	―	-3.63%	2.26%
TEL	72 Outperform	$61.14B	42.35	11.63%	1.31%	4.86%	-56.43%
FTV	72 Outperform	$16.41B	21.90	7.36%	0.47%	-0.12%	-11.27%
JBL	66 Neutral	$22.36B	40.60	32.41%	0.15%	-6.13%	-53.35%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
COHR	59 Neutral	$14.27B	―	0.63%	―	23.42%	71.17%
SNDK	47 Neutral	$6.90B	―		―	―	―