SEAGATE TECHNOLOGY HOLDINGS (STX)

IE00BKVD2N49 - Common Stock

94.58  -0.14 (-0.15%)

Premarket: 94.58 0 (0%)

Fundamental Rating

3

Overall STX gets a fundamental rating of 3 out of 10. We evaluated STX against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. STX may be in some trouble as it scores bad on both profitability and health. STX is valued expensive and it does not seem to be growing.



2

1. Profitability

1.1 Basic Checks

STX had negative earnings in the past year.
In the past year STX had a positive cash flow from operations.
Of the past 5 years STX 4 years were profitable.
Each year in the past 5 years STX had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -10.18%, STX is doing worse than 65.63% of the companies in the same industry.
Industry RankSector Rank
ROA -10.18%
ROE N/A
ROIC N/A
ROA(3y)8.86%
ROA(5y)12.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

STX's Operating Margin has declined in the last couple of years.
STX has a Gross Margin of 17.52%. This is in the lower half of the industry: STX underperforms 78.13% of its industry peers.
STX's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for STX so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 17.52%
OM growth 3Y-60.47%
OM growth 5Y-44.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.21%
GM growth 5Y-9.46%

2

2. Health

2.1 Basic Checks

STX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, STX has less shares outstanding
STX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STX is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.44, we must say that STX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STX (0.44) is worse than 71.88% of its industry peers.
The Debt to FCF ratio of STX is 11.38, which is on the high side as it means it would take STX, 11.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.38, STX is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 11.38
Altman-Z 0.44
ROIC/WACCN/A
WACC6.99%

2.3 Liquidity

STX has a Current Ratio of 1.04. This is a normal value and indicates that STX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, STX is doing worse than 87.50% of the companies in the same industry.
STX has a Quick Ratio of 1.04. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.
STX has a worse Quick ratio (0.62) than 93.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.62

3

3. Growth

3.1 Past

STX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -113.86%.
STX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.57% yearly.
The Revenue for STX has decreased by -30.81% in the past year. This is quite bad
STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.97% yearly.
EPS 1Y (TTM)-113.86%
EPS 3Y-66.89%
EPS 5Y-49.57%
EPS growth Q2Q-25%
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y-11.1%
Revenue growth 5Y-7.97%
Revenue growth Q2Q-17.59%

3.2 Future

STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 111.71% yearly.
Based on estimates for the next years, STX will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y309.53%
EPS Next 2Y421.7%
EPS Next 3Y235.51%
EPS Next 5Y111.71%
Revenue Next Year-12.86%
Revenue Next 2Y7.72%
Revenue Next 3Y7.94%
Revenue Next 5Y4.91%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

3

4. Valuation

4.1 Price/Earnings Ratio

STX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of STX can be described as rather expensive.
STX's Price/Forward Earnings is on the same level as the industry average.
STX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 19.31

4.2 Price Multiples

STX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as STX.
Industry RankSector Rank
P/FCF 39.79
EV/EBITDA 69.18

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STX's earnings are expected to grow with 235.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y421.7%
EPS Next 3Y235.51%

6

5. Dividend

5.1 Amount

STX has a Yearly Dividend Yield of 3.17%.
STX's Dividend Yield is rather good when compared to the industry average which is at 2.55. STX pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, STX pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.17%

5.2 History

The dividend of STX has a limited annual growth rate of 2.17%.
STX has paid a dividend for at least 10 years, which is a reliable track record.
STX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.17%
Div Incr Years0
Div Non Decr Years10

5.3 Sustainability

The earnings of STX are negative and hence is the payout ratio. STX will probably not be able to sustain this dividend level.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-79.81%
EPS Next 2Y421.7%
EPS Next 3Y235.51%

SEAGATE TECHNOLOGY HOLDINGS

NASDAQ:STX (3/27/2024, 8:00:01 PM)

Premarket: 94.58 0 (0%)

94.58

-0.14 (-0.15%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.82B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.17%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 19.31
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.18%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 17.52%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.04
Quick Ratio 0.62
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-113.86%
EPS 3Y-66.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y309.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y-11.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y