Sandisk Corporation (SNDK)

FairStock Score: 89/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with what Sandisk actually does: it sells NAND flash storage, a hardware business that can be cyclical and competitive. The filed numbers show a dramatic turnaround. In FY2025, the period ended 2025-06-27, revenue was $7.4B and net income was a loss of $1.6B. By FY2026, the period ended 2026-07-03, revenue reached $20.2B and net income $11.4B. Within fiscal 2026, the quarterly climb was steep: Q1 ended 2025-10-03 had $2.3B revenue and $112M net income; Q2 ended 2026-01-02 had $3.0B revenue and $803M net income; Q3 ended 2026-04-03 had $6.0B revenue and $3.6B net income. That is an extraordinary up-cycle, and the balance sheet looks strong: FairStock calculations show debt-to-equity of 0.01, ROE 91.64%, ROCE 43.91%, Piotroski 8/9, Altman Z 10.51, and trailing free cash flow of $11.5B, a 12.6% FCF yield. But I am wary of paying for peak cyclical earnings. At the 2026-10-13 close of $1482.33, the FairStock P/E is 20.08 and PEG is 0.07, which looks cheap if growth persists. Yet P/B is 14.04 and the Graham Number is $423.10, leaving a margin of safety of -250.35%—the price is far above asset-based value. Beta of 5.05 confirms extreme volatility. This is a Lynch turnaround, but a turnaround in a commodity hardware cycle rarely deserves a permanent premium. I would require a much wider discount to intrinsic value before calling it a bargain.

In plain English: Sandisk makes memory and storage products, including solid-state drives and flash storage for computers, phones, cars, and other devices. The business has swung from losses to large profits, generates a lot of cash, and carries very little debt. But at the current stock price, it looks expensive compared with the value of its assets, even though profits have risen sharply.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-03) · fiscal Q2 2026 10-Q (period ended 2026-01-02) · fiscal Q1 2026 10-Q (period ended 2025-10-03) · fiscal Q3 2025 10-Q (period ended 2025-03-28) · FY2026 10-K (period ended 2026-07-03) · FY2025 10-K (period ended 2025-06-27) · FY2024 10-K (period ended 2024-06-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer