SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
NASDAQ:STX - Nasdaq - IE00BKVD2N49 - Common Stock - Currency: USD
Overall STX gets a fundamental rating of 5 out of 10. We evaluated STX against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While STX belongs to the best of the industry regarding profitability, there are concerns on its financial health. STX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
STX had positive earnings in the past year.
STX had a positive operating cash flow in the past year.
STX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years STX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.31%, STX belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
STX has a Return On Invested Capital of 30.87%. This is amongst the best in the industry. STX outperforms 93.75% of its industry peers.
STX had an Average Return On Invested Capital over the past 3 years of 13.20%. This is below the industry average of 16.63%.
The last Return On Invested Capital (30.87%) for STX is above the 3 year average (13.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROIC | 30.87% |
ROA(3y)5.21%
ROA(5y)9.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)18.67%
1.3 Margins
Looking at the Profit Margin, with a value of 16.15%, STX belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of STX has grown nicely.
With an excellent Operating Margin value of 21.16%, STX belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of STX has grown nicely.
STX has a better Gross Margin (35.29%) than 65.63% of its industry peers.
STX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.16% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.29% |
OM growth 3Y7.83%
OM growth 5Y9.87%
PM growth 3Y4.52%
PM growth 5Y11.07%
GM growth 3Y5.75%
GM growth 5Y5.4%
2. Health
2.1 Basic Checks
STX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STX has more shares outstanding than it did 1 year ago.
STX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of STX is 6.11, which is on the high side as it means it would take STX, 6.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.11, STX is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | N/A |
ROIC/WACC3.75
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.38 indicates that STX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, STX is in line with its industry, outperforming 43.75% of the companies in the same industry.
STX has a Quick Ratio of 1.38. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of STX (0.84) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 532.81%, which is quite impressive.
STX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.31% yearly.
Looking at the last year, STX shows a very strong growth in Revenue. The Revenue has grown by 38.86%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -2.84% on average per year.
EPS 1Y (TTM)532.81%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%146.67%
Revenue 1Y (TTM)38.86%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%29.52%
3.2 Future
STX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.17% yearly.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y21.5%
EPS Next 2Y20.36%
EPS Next 3Y15.54%
EPS Next 5Y2.17%
Revenue Next Year13.65%
Revenue Next 2Y9.85%
Revenue Next 3Y9.66%
Revenue Next 5Y5.53%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.00, the valuation of STX can be described as rather expensive.
Based on the Price/Earnings ratio, STX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.93, STX is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.64, which indicates a correct valuation of STX.
STX's Price/Forward Earnings is on the same level as the industry average.
STX is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
STX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.92 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
STX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STX's earnings are expected to grow with 15.54% in the coming years.
PEG (NY)0.88
PEG (5Y)1.84
EPS Next 2Y20.36%
EPS Next 3Y15.54%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
STX's Dividend Yield is rather good when compared to the industry average which is at 1.98. STX pays more dividend than 87.50% of the companies in the same industry.
STX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of STX has a limited annual growth rate of 2.11%.
STX has paid a dividend for at least 10 years, which is a reliable track record.
STX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.11%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
STX pays out 40.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
STX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.84%
EPS Next 2Y20.36%
EPS Next 3Y15.54%
NASDAQ:STX (8/15/2025, 10:07:07 AM)
153.87
-1.86 (-1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0.73%
Ins Owners0.34%
Ins Owner Change-11.47%
Market Cap32.65B
Analysts77.24
Price Target163.99 (6.58%)
Short Float %8.87%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend2.84
Dividend Growth(5Y)2.11%
DP40.84%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.67%
Max EPS beat(2)8.05%
EPS beat(4)4
Avg EPS beat(4)6.27%
Min EPS beat(4)4.67%
Max EPS beat(4)8.05%
EPS beat(8)7
Avg EPS beat(8)44.77%
EPS beat(12)9
Avg EPS beat(12)15.48%
EPS beat(16)11
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-1.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.96%
PT rev (1m)33.66%
PT rev (3m)45.9%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)0%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 15.64 | ||
| P/S | 3.59 | ||
| P/FCF | 39.92 | ||
| P/OCF | 30.15 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.07 |
EPS(TTM)8.1
EY5.26%
EPS(NY)9.84
Fwd EY6.4%
FCF(TTM)3.85
FCFY2.51%
OCF(TTM)5.1
OCFY3.32%
SpS42.87
BVpS-2.13
TBVpS-7.89
PEG (NY)0.88
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROCE | 35.81% | ||
| ROIC | 30.87% | ||
| ROICexc | 37% | ||
| ROICexgc | 50.85% | ||
| OM | 21.16% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.29% | ||
| FCFM | 8.99% |
ROA(3y)5.21%
ROA(5y)9.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.2%
ROIC(5y)18.67%
ROICexc(3y)16.38%
ROICexc(5y)22.59%
ROICexgc(3y)23.32%
ROICexgc(5y)31.46%
ROCE(3y)15.31%
ROCE(5y)21.67%
ROICexcg growth 3Y1.86%
ROICexcg growth 5Y6.27%
ROICexc growth 3Y1.34%
ROICexc growth 5Y6.75%
OM growth 3Y7.83%
OM growth 5Y9.87%
PM growth 3Y4.52%
PM growth 5Y11.07%
GM growth 3Y5.75%
GM growth 5Y5.4%
F-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 105.58% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.77% | ||
| Profit Quality | 55.68% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | N/A |
F-Score7
WACC8.24%
ROIC/WACC3.75
Cap/Depr(3y)87.8%
Cap/Depr(5y)94.66%
Cap/Sales(3y)3.69%
Cap/Sales(5y)3.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)532.81%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%146.67%
EPS Next Y21.5%
EPS Next 2Y20.36%
EPS Next 3Y15.54%
EPS Next 5Y2.17%
Revenue 1Y (TTM)38.86%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%29.52%
Revenue Next Year13.65%
Revenue Next 2Y9.85%
Revenue Next 3Y9.66%
Revenue Next 5Y5.53%
EBIT growth 1Y356.16%
EBIT growth 3Y-0.74%
EBIT growth 5Y6.74%
EBIT Next Year53.27%
EBIT Next 3Y24.02%
EBIT Next 5Y4.73%
FCF growth 1Y23.19%
FCF growth 3Y-13.77%
FCF growth 5Y-6.24%
OCF growth 1Y17.97%
OCF growth 3Y-13.22%
OCF growth 5Y-8.77%