Sandisk Corporation delivered a solid Q4 2024 despite a cyclical memory backdrop. Revenue rose 29.2% year over year to $1.876 billion and climbed 12.7% sequentially, supported by a favorable product mix and ongoing demand for storage solutions. Gross profit was $606 million for a gross margin of 32.3%, helping drive an operating income of $195 million and an operating margin of 10.4%. Net income reached $104 million with earnings per share of $0.72, underscoring a durable profitability profile in a historically volatile sector. EBITDA stood at $177 million (9.4% EBITDA margin), illustrating meaningful cash-generating capacity even as the business bears high working-capital intensity.
The balance sheet shows ample liquidity with cash and cash equivalents of $804 million, modest gross debt of $732 million and a net cash position of roughly $72 million. Total assets totaled $14.23 billion against stockholders’ equity of $12.00 billion, signaling a well-capitalized balance sheet. However, the company carries a substantial level of goodwill ($6.83 billion) and inventories totaling $2.17 billion, contributing to a longer cash conversion cycle (DSO ~43.8 days; DIO ~153.9 days; DPO ~22.7 days; CCC ~197.7 days). Trading multiples imply a conservative valuation: P/E around 12.5x, P/B roughly 0.43x, P/S about 2.76x, with EV/Revenue near 28.9x. The quarterly improvements are notable, but the stock remains exposed to the memory cycle and mix risk inherent to NAND-based storage. Overall, the near-term stance is cautiously constructive with a focus on demand dynamics, mix optimization, and capital allocation discipline.