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.
Key Performance Indicators
Revenue
Increasing
1.88B
QoQ: 12.67% | YoY: 29.18%
Gross Profit
Increasing
606.00M
32.30% margin
QoQ: 276.40% | YoY: 0.53%
Operating Income
Decreasing
195.00M
QoQ: 179.59% | YoY: -17.86%
Net Income
Decreasing
104.00M
QoQ: 134.55% | YoY: -21.81%
EPS
Increasing
0.72
QoQ: 148.32% | YoY: 12.10%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.876B; YoY +29.18%, QoQ +12.67%
Gross Profit: $606M; Gross Margin 32.30%
Operating Income: $195M; Operating Margin 10.39%
Net Income: $104M; Net Margin 5.54%
EPS: $0.72; YoY +12.10%, QoQ +148.32%
EBITDA: $177M; EBITDA Margin 9.43%
Cash & Equivalents: $804M; Net Debt: -$72M (net cash)
Liquidity: Current ratio 2.38; Quick ratio 1.22; Cash ratio 0.43
Balance Sheet: Total assets $14.234B; Total liabilities $2.233B; Total stockholders’ equity $12.001B
Capital Structure: Total debt $732M; Long-term debt $179M; Short-term debt $553M; Interest expense $4M; Tax expense $69M; Effective tax rate ~39.9%
Working Capital Metrics: DSO 43.75 days; DIO 153.92 days; DPO 22.68 days; CCC ~197.67 days (cash conversion cycle)
Valuation: P/E 12.46x; P/B 0.432x; P/S 2.76x; EV/Revenue 28.88x; Price to Book 0.432x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.88B
29.18%
12.67%
Gross Profit
606.00M
0.53%
276.40%
Operating Income
195.00M
-17.86%
179.59%
Net Income
104.00M
-21.81%
134.55%
EPS
0.72
12.10%
148.32%
Key Financial Ratios
Gross Profit Margin
Fair
32.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
10.40%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.54%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.73%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.87%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.38
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.06
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
12.46x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.43x
Trading below book value, potential value opportunity or distressed
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