Sandisk Corporation (SNDK) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Sandisk Corporation

Updated on October 31, 2026 · accounts published on October 29, 2026

A highly profitable, cash-rich business with an uneven profitability record

Sandisk trades at a P/E of 9.2 over the last 12 months, 71 % below its sector median of 31.5, while earning a 93 % ROIC.

• Is Sandisk expensive or cheap? Its P/E of 9.2 over the last 12 months is 71 % below the sector median of 31.5, yet its free cash flow yield is only 1.5 %.
• How is the business doing? Revenue grew 175 % and EPS 752 % over the last 12 months, with a 73 % operating margin.
• How strong is the balance sheet? Sandisk held net cash of $29.22 per share in fiscal 2026, and net debt stands at −0.3× EBITDA.
• Is Sandisk growing with real cash or by diluting shareholders? Free cash flow was 57 % of revenue in fiscal 2026, while stock-based pay took just 1.1 % of revenue.
• What to expect from the next earnings? 14 of 16 analysts rate it a buy; next results on February 4, 2027, with EPS of $52.16 expected.

Is Sandisk expensive or cheap?

Over the last 12 months Sandisk trades at a P/E of 9.2, 71 % below the 31.5 median of 317 sector peers, and an EV/EBITDA of 7.4×. On earnings alone, that looks low. Other measures disagree: price to book is 9.3× and the free cash flow yield is just 1.5 %, so investors get little cash back for the market value they pay. The share price has risen 488 % in 12 months and still sits 51 % below its 52-week high of $2,335.00, against a low of $194.38. A multiple this low after a run like that suggests the market doubts these earnings will last.

How is the business doing?

Over the last 12 months revenue rose 175 % and EPS 752 %, with a 73 % operating margin and a 67 % net margin. ROIC stands at 93 %, 84.4 points above the 8.2 % median of 458 sector peers. The history is the caution: ROIC cleared 10 % in only 1 of the last 6 fiscal years (2021-2026), and the worst was −16.2 % in 2023. The present is exceptional and the record is uneven, so the key question is how much of today's profitability holds.

How strong is the balance sheet?

At the end of fiscal 2026 Sandisk held $32.39 per share in cash against $3.17 of debt, a net cash position of $29.22 per share. Net debt to EBITDA is −0.3×, well inside the 2.0× tolerated for hardware companies. Over the last 12 months the current ratio is 2.58, the Altman Z-score of 26.4 sits deep in the safe zone and the Piotroski score is 7 of 9. The nuance is scale: that net cash equals only 2.5 % of the current share price, so the balance sheet removes financial risk but offers little cushion for the valuation.

Is Sandisk growing with real cash or by diluting shareholders?

In technology, generic ratios fall short: what matters is growth, pricing power and how much stock-based pay dilutes owners. Sandisk passes every test. Revenue per share grew 48 % a year over fiscal 2023-2026, against a healthy threshold of 15 %. The fiscal 2026 gross margin of 72 % is double the 35 % considered healthy for hardware, a sign of pricing power. Free cash flow equalled 57 % of revenue, above the 20 % bar, and stock-based compensation cost only 1.1 % of revenue, far below the 10 % healthy limit. Growth here comes with cash and very little dilution.

What to expect from the next earnings?

Sandisk has beaten EPS estimates in each of the last 8 quarters. On October 29, 2026 it reported EPS of $49.51 against $46.67 expected, a 6 % beat. For the quarter due February 4, 2027, analysts expect $52.16. Over the last 30 days the 2027 EPS consensus rose 1.5 %, from $212.53 to $215.79 across 13 analysts, and the revenue consensus rose 1.3 %. Of 16 analysts, 14 recommend buying, 2 holding and none selling. Expectations are high and still rising, and an unbroken record of beats sets the bar for the next report.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.