THE BUSINESSWEEK 50 RANKINGS + 25

68

SanDisk

For a while, it looked like SanDisk could do no wrong. Its memory cards have been snapped up by consumers for everything from cellular phones to digital cameras, and its Sansa line of flash-memory digital music players has been trying to give Apple a run for its money. But intense pricing in the volatile memory business could dampen the good times. SanDisk recently announced it would cut 10% of its workforce and slash executive pay as prices tumble for core products. It may need to get lean and mean fast; pc heavyweight Intel later this year will begin selling a flash memory-based hard drive that will compete against its products aimed at the notebook computer market. And new Sansa portable music players face potential strong competition from Apple?s iPhone coming in June.

Overall Grade

A-

Market Data

SNDK

Market Value
(2/28/2007)

$7.2 Billion

Profitability*

20.5%

B-

Sales Growth Rate**

42.9%

A-

12-Month Sales

$3.3 Billion

12-Month Net Income

$0.2 Billion

Total Return Past 12 Months

-39.6%

Past 36 Months

43.3%

Economic SectorInformation Technology
IndustryComputer Storage & Peripherals
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Eli Harari

Eli Harari, 61

CEO since 1988


The BW 50 + 25 Interactive Scoreboard

More BW Stories on SanDisk


More BW50 Profiles






Data as of 2/28/07 provided by Standard & Poor's Compustat