SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
NASDAQ:STX - Nasdaq - IE00BKVD2N49 - Common Stock - Currency: USD
STX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of STX while its profitability can be described as average. STX has a correct valuation and a medium growth rate. Finally STX also has an excellent dividend rating.
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
Looking at the Return On Assets, with a value of 19.75%, STX belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.04%, STX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STX is below the industry average of 16.28%.
The 3 year average ROIC (11.70%) for STX is below the current ROIC(24.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | N/A | ||
| ROIC | 24.04% |
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
1.3 Margins
STX has a better Profit Margin (17.49%) than 93.75% of its industry peers.
STX's Profit Margin has declined in the last couple of years.
STX has a Operating Margin of 19.26%. This is amongst the best in the industry. STX outperforms 87.50% of its industry peers.
STX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.79%, STX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
STX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.26% | ||
| PM (TTM) | 17.49% | ||
| GM | 33.79% |
OM growth 3Y-22.88%
OM growth 5Y-14.5%
PM growth 3Y-25.37%
PM growth 5Y-23.38%
GM growth 3Y-4.96%
GM growth 5Y-3.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STX 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.
Compared to 1 year ago, STX has a worse debt to assets ratio.
2.2 Solvency
STX has an Altman-Z score of 1.96. This is not the best score and indicates that STX is in the grey zone with still only limited risk for bankruptcy at the moment.
STX has a Altman-Z score of 1.96. This is comparable to the rest of the industry: STX outperforms 59.38% of its industry peers.
STX has a debt to FCF ratio of 6.66. This is a slightly negative value and a sign of low solvency as STX would need 6.66 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.66, STX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.66 | ||
| Altman-Z | 1.96 |
ROIC/WACC3
WACC8%
2.3 Liquidity
A Current Ratio of 1.36 indicates that STX should not have too much problems paying its short term obligations.
STX has a Current ratio (1.36) which is in line with its industry peers.
STX has a Quick Ratio of 1.36. 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 (0.75) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13020.00%, which is quite impressive.
The earnings per share for STX have been decreasing by -23.23% on average. This is quite bad
Looking at the last year, STX shows a very strong growth in Revenue. The Revenue has grown by 36.29%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -8.81% on average per year.
EPS 1Y (TTM)13020%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%475.76%
Revenue 1Y (TTM)36.29%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%30.51%
3.2 Future
Based on estimates for the next years, STX will show a very strong growth in Earnings Per Share. The EPS will grow by 49.23% on average per year.
Based on estimates for the next years, STX will show a quite strong growth in Revenue. The Revenue will grow by 10.78% on average per year.
EPS Next Y485.14%
EPS Next 2Y174.08%
EPS Next 3Y94.74%
EPS Next 5Y49.23%
Revenue Next Year38.73%
Revenue Next 2Y24.72%
Revenue Next 3Y17.29%
Revenue Next 5Y10.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.00, STX is valued correctly.
STX's Price/Earnings ratio is a bit cheaper when compared to the industry. STX is cheaper than 62.50% of the companies in the same industry.
STX is valuated rather cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.92, which indicates a very decent valuation of STX.
The rest of the industry has a similar Price/Forward Earnings ratio as STX.
When comparing the Price/Forward Earnings ratio of STX to the average of the S&P500 Index (20.94), we can say STX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
62.50% of the companies in the same industry are more expensive than STX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.74 | ||
| EV/EBITDA | 13.65 |
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.
STX has a very decent profitability rating, which may justify a higher PE ratio.
STX's earnings are expected to grow with 94.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y174.08%
EPS Next 3Y94.74%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 2.85, STX pays a better dividend. On top of this STX pays more dividend than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, STX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of STX has a limited annual growth rate of 1.79%.
STX has been paying a dividend for at least 10 years, so it has a reliable track record.
STX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.79%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
39.76% of the earnings are spent on dividend by STX. This is a low number and sustainable payout ratio.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.76%
EPS Next 2Y174.08%
EPS Next 3Y94.74%
NASDAQ:STX (5/13/2025, 1:09:58 PM)
104.95
+3 (+2.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners92.34%
Inst Owner Change0.23%
Ins Owners0.38%
Ins Owner Change-0.36%
Market Cap22.22B
Analysts76.43
Price Target112.4 (7.1%)
Short Float %8.95%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.8
Dividend Growth(5Y)1.79%
DP39.76%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.73%
Min EPS beat(2)7.19%
Max EPS beat(2)8.26%
EPS beat(4)4
Avg EPS beat(4)14.58%
Min EPS beat(4)5.16%
Max EPS beat(4)37.71%
EPS beat(8)7
Avg EPS beat(8)47.97%
EPS beat(12)8
Avg EPS beat(12)13.69%
EPS beat(16)11
Avg EPS beat(16)10.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.66%
Revenue beat(12)3
Avg Revenue beat(12)-2.43%
Revenue beat(16)3
Avg Revenue beat(16)-1.95%
PT rev (1m)-7.59%
PT rev (3m)-10.02%
EPS NQ rev (1m)15.63%
EPS NQ rev (3m)15.1%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)4.32%
Revenue NQ rev (3m)4.19%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 10.92 | ||
| P/S | 2.6 | ||
| P/FCF | 28.74 | ||
| P/OCF | 22.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.65 |
EPS(TTM)6.56
EY6.25%
EPS(NY)9.62
Fwd EY9.16%
FCF(TTM)3.65
FCFY3.48%
OCF(TTM)4.77
OCFY4.54%
SpS40.34
BVpS-3.92
TBVpS-9.67
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | N/A | ||
| ROCE | 31.93% | ||
| ROIC | 24.04% | ||
| ROICexc | 28.55% | ||
| ROICexgc | 39.7% | ||
| OM | 19.26% | ||
| PM (TTM) | 17.49% | ||
| GM | 33.79% | ||
| FCFM | 9.05% |
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
ROICexc(3y)13.88%
ROICexc(5y)17.94%
ROICexgc(3y)19.58%
ROICexgc(5y)25.16%
ROCE(3y)15.55%
ROCE(5y)18.99%
ROICexcg growth 3Y-23.55%
ROICexcg growth 5Y-15.5%
ROICexc growth 3Y-26.97%
ROICexc growth 5Y-17.2%
OM growth 3Y-22.88%
OM growth 5Y-14.5%
PM growth 3Y-25.37%
PM growth 5Y-23.38%
GM growth 3Y-4.96%
GM growth 5Y-3.64%
F-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.66 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 93.28% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.16% | ||
| Profit Quality | 51.74% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.96 |
F-Score7
WACC8%
ROIC/WACC3
Cap/Depr(3y)80.76%
Cap/Depr(5y)104.42%
Cap/Sales(3y)3.81%
Cap/Sales(5y)4.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13020%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%475.76%
EPS Next Y485.14%
EPS Next 2Y174.08%
EPS Next 3Y94.74%
EPS Next 5Y49.23%
Revenue 1Y (TTM)36.29%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%30.51%
Revenue Next Year38.73%
Revenue Next 2Y24.72%
Revenue Next 3Y17.29%
Revenue Next 5Y10.78%
EBIT growth 1Y1175.19%
EBIT growth 3Y-34.47%
EBIT growth 5Y-22.04%
EBIT Next Year263.57%
EBIT Next 3Y66.63%
EBIT Next 5Y32%
FCF growth 1Y36.33%
FCF growth 3Y-16.19%
FCF growth 5Y-10.54%
OCF growth 1Y11.49%
OCF growth 3Y-17.35%
OCF growth 5Y-12.22%