Sandisk Corp (NASDAQ: SNDK)

Sector: Technology Industry: Computer Hardware CIK: 0002023554
Market Cap 84.68 Bn
P/B 8.29
P/E -81.35
P/S 9.48
ROIC (Qtr) -4.87
Div Yield % 0.00
Rev 1y % (Qtr) 61.25
Total Debt (Qtr) 603.00 Mn
Debt/Equity (Qtr) 0.06
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About

Investment thesis

Bull case

  • Strong operating cash flow of 1.63B provides robust 2.70x coverage of total debt 603M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.54B provide 76.95x coverage of short-term debt 20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.63B provides exceptional 13.34x coverage of interest expenses 122M, showing strong debt service capability.
  • Strong tangible asset base of 8B provides 13.27x coverage of total debt 603M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 1.63B provides 2.63x coverage of SG&A expenses 619M, showing efficient operational cost management.

Bear case

  • Investment activities of 207M provide weak support for R&D spending of 1.21B, which is 0.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of (736M) show weak coverage of depreciation charges of 147M, with a -5.01 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 1.63B barely covers operating expenses of 1.89B with a 0.86 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Long-term investments of 677M represent a high 1.07x of fixed assets 631M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 1.63B provides only 1.34x coverage of R&D expenses of 1.21B, suggesting vulnerability in maintaining innovation investments.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 179.24 Bn 53.40 21.22 0.00 Bn
2 WDC Western Digital Corp 98.04 Bn 26.19 9.13 4.66 Bn
3 STX Seagate Technology Holdings plc 88.97 Bn 45.16 8.85 4.50 Bn
4 DELL Dell Technologies Inc. 88.38 Bn 16.28 0.83 31.24 Bn
5 SNDK Sandisk Corp 84.68 Bn -81.35 9.48 0.60 Bn
6 PSTG Pure Storage, Inc. 23.69 Bn 181.72 6.80 0.23 Bn
7 HPQ Hp Inc 19.18 Bn 6.12 0.30 9.67 Bn
8 SMCI Super Micro Computer, Inc. 18.00 Bn 20.62 0.64 4.88 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.51 2.19
EV to Cash from Ops. EV/CFO 51.99 2.50
EV to Debt EV to Debt 140.29 44.88
EV to EBIT EV/EBIT -114.94 2.12
EV to EBITDA EV/EBITDA -181.92 -19.56
EV to Free Cash Flow [EV/FCF] EV/FCF 58.38 -8.34
EV to Market Cap EV to Market Cap 1.00 11.85
EV to Revenue EV/Rev 9.47 54.76
Price to Book Value [P/B] P/B 8.29 8.20
Price to Earnings [P/E] P/E -81.35 5.99
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.24
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.08
Dividend per Basic Share Div per Share (Qtr) 0.00 0.28
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.46
Interest Coverage Int. cover (Qtr) -6.03 -105.33
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.56 -18.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 91.42 858.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -286.80 -125.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -148.95 -43.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -202.94 -115.12
EBT Growth (1y) % EBT 1y % (Qtr) -224.17 -99.71
EPS Growth (1y) % EPS 1y % (Qtr) -326.88 -80.56
FCF Growth (1y) % FCF 1y % (Qtr) 505.88 665.24
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.85 34.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.93 7.23
Current Ratio Curr Ratio (Qtr) 3.11 13.52
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 -0.79
Interest Cover Ratio Int Coverage (Qtr) -6.03 -105.33
Times Interest Earned Times Interest Earned (Qtr) -6.03 -105.33
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -6.60 -628.62
EBIT Margin % EBIT Margin % (Qtr) -8.24 -682.62
EBT Margin % EBT Margin % (Qtr) -9.61 -686.50
Gross Margin % Gross Margin % (Qtr) 34.80 35.11
Net Profit Margin % Net Margin % (Qtr) -11.70 -690.74