The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 30 | 99.5x | 20.3x | Below average | |
Growth | 91 | 72.8% | 5.6% | Above average | |
Quality | 67 | 25.6% | 7.6% | Near average | |
Safety | 82 | -1.0x | 0.4x | Above average | |
Capital Return | 79 | — | 2.15% | Above average | |
Momentum | 94 | — | — | Above average | |
Sentiment | 40 | — | — | Near average |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sandisk Corporation (listed on NASDAQ under the ticker SNDK) is one of the world's leading companies in the design and manufacture of data storage solutions based on NAND flash memory technology. The company generates its revenue by selling SSDs and advanced storage solutions to three primary markets: Data Center, which is experiencing rapid growth driven by artificial intelligence application demand; Edge, which includes smartphones and personal computers; and the Consumer segment through retail sales channels.
The financial results for the third quarter of fiscal year 2026 showed an exceptional jump in the company's financial performance. Total revenue reached $5.95 billion, representing a massive growth of 251% year-over-year and a 97% growth compared to the previous quarter, exceeding the company's prior guidance range of $4.4 billion to $4.8 billion. This growth was driven by a shift in the product mix toward high-value customers and an improvement in the global pricing environment.
On the profitability front, the company recorded a non-GAAP gross margin of 78.4% compared to 51.1% in the previous quarter, significantly beating its prior guidance of 65% to 67%. The company also achieved quarterly GAAP net income of $3.6 billion with earnings per share of $23.03, while the non-GAAP operating margin reached approximately 70.9%, reflecting the high operational efficiency and strong financial leverage that the company currently enjoys.
The stock is currently trading at $1559.32, which is above the average analyst target of $1457.5 (-6.5%), with a consensus buy rating.
The New Business Models are long-term supply agreements spanning up to 5 years, aimed at providing supply assurances to customers and financial guarantees to Sandisk to reduce market volatility. The company has successfully signed 5 agreements to date, and the first three of these agreements provide a minimum remaining performance obligation (RPO) of $42 billion. These agreements are backed by financial guarantees exceeding $11 billion managed by major financial institutions, and they cover more than one-third of the company's bit production for fiscal year 2027.
The Data Center segment achieved exceptional growth of 233% sequentially compared to the previous quarter, with segment revenue reaching $1.467 billion. This record growth was driven by robust demand for enterprise SSDs based on TLC technology, which support intensive artificial intelligence workloads. The company expects this momentum to continue as shipments of QLC Stargate products begin in the fourth quarter.
The company expects to generate revenue between $7.75 billion and $8.25 billion in the fourth quarter, driven by bit shipment growth and higher pricing. The company also expects to achieve a non-GAAP gross margin between 79% and 81%, and a non-GAAP earnings per share range of $30 to $33 per share, assuming 158 million fully diluted shares.
Automated analysis for informational purposes only — not investment advice.
The company paid off the remaining $650 million balance of its Term Loan B (TLB), placing it in a strong net cash position with liquidity of $3.735 billion at the end of the third quarter. Building on this financial stability, the board of directors authorized a new $6 billion common stock repurchase program with no specified expiration date. This follows strategic investments that included extending the joint venture with Kioxia until December 2034 and investing $1 billion in Nanya to secure DRAM supply.