Sandisk Corporation — Earnings Quality Grade C
SNDK · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 53 days, change +2 days YoY
AR growth 14.2% vs revenue growth 10.4%
Revenue 10.4%, CFFO 127.2%. Cash follows revenue
Expense Quality
Inventory 6.3% vs COGS -8.0%. Normal
CapEx growth 22.9% is >2x revenue growth 10.4%
SG&A/Gross Profit = 25.9%, excellent (<30%)
Gross margin swung +14.0pp (16.1% → 30.1%)
Cash Flow Quality
CFFO/NI = -0.05. Below 1.0
FCF is negative ($-0.1B)
Accruals ratio = -13.3%. Low accruals
Cash $1.5B covers 73% of debt $2.0B
Balance Sheet Health
Goodwill+Intangibles $5.0B = 54% of equity. Over 50%
Debt/EBITDA = -1.6x. Healthy
Other assets grew 74.8% vs revenue 10.4%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -31% YoY. Normal
Manipulation Score
M-Score = -3.50 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10