SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
225.4 USD
-0.63 (-0.28%)
225.328 USD
-0.07 (-0.03%)
We assign a fundamental rating of 6 out of 10 to STX. STX was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. STX scores excellent on profitability, but there are some minor concerns on its financial health. STX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STX had positive earnings in the past year.
In the past year STX had a positive cash flow from operations.
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
The Return On Assets of STX (18.31%) is better than 96.97% of its industry peers.
STX's Return On Invested Capital of 30.91% is amongst the best of the industry. STX outperforms 96.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STX is in line with the industry average of 14.92%.
The last Return On Invested Capital (30.91%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROIC | 30.91% |
ROA(3y)5.21%
ROA(5y)9.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.27%
ROIC(5y)18.72%
1.3 Margins
The Profit Margin of STX (16.15%) is better than 90.91% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.19%, STX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
STX's Operating Margin has improved in the last couple of years.
STX's Gross Margin of 35.32% is fine compared to the rest of the industry. STX outperforms 66.67% of its industry peers.
STX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.19% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.32% |
OM growth 3Y8.07%
OM growth 5Y10.02%
PM growth 3Y4.52%
PM growth 5Y11.07%
GM growth 3Y5.89%
GM growth 5Y5.48%
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.
The number of shares outstanding for STX has been reduced compared to 5 years ago.
The debt/assets ratio for STX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.06 indicates that STX is not in any danger for bankruptcy at the moment.
STX has a better Altman-Z score (4.06) than 72.73% of its industry peers.
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.
STX has a better Debt to FCF ratio (6.11) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 4.06 |
ROIC/WACC3.73
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.38 indicates that STX should not have too much problems paying its short term obligations.
STX's Current ratio of 1.38 is in line compared to the rest of the industry. STX outperforms 48.48% of its industry peers.
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.
STX has a Quick ratio of 0.84. This is comparable to the rest of the industry: STX outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 532.81% over the past year.
STX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.31% yearly.
The Revenue has grown by 38.86% in the past year. This is a very strong growth!
STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.84% yearly.
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
Based on estimates for the next years, STX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.89% on average per year.
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y29.3%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
EPS Next 5Y13.89%
Revenue Next Year15.96%
Revenue Next 2Y13.39%
Revenue Next 3Y10.79%
Revenue Next 5Y9.96%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.83, STX can be considered very expensive at the moment.
63.64% of the companies in the same industry are more expensive than STX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, STX is valued at the same level.
A Price/Forward Earnings ratio of 21.52 indicates a rather expensive valuation of STX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STX is on the same level as its industry peers.
STX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STX is cheaper than 63.64% of the companies in the same industry.
STX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.68 | ||
| EV/EBITDA | 23.98 |
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.
The excellent profitability rating of STX may justify a higher PE ratio.
STX's earnings are expected to grow with 22.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)2.7
EPS Next 2Y25.88%
EPS Next 3Y22.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, STX has a reasonable but not impressive dividend return.
STX's Dividend Yield is a higher than the industry average which is at 2.15.
Compared to an average S&P500 Dividend Yield of 2.38, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of STX has a limited annual growth rate of 2.08%.
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)2.08%
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.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.84%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
225.4
-0.63 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.38%
Inst Owner Change-0.09%
Ins Owners0.3%
Ins Owner Change-8.99%
Market Cap48.00B
Analysts78.67
Price Target190.03 (-15.69%)
Short Float %7.96%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
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)11.49%
PT rev (3m)54.88%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.61%
EPS NY rev (1m)1.11%
EPS NY rev (3m)6.42%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 21.52 | ||
| P/S | 5.28 | ||
| P/FCF | 58.68 | ||
| P/OCF | 44.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.98 |
EPS(TTM)8.1
EY3.59%
EPS(NY)10.47
Fwd EY4.65%
FCF(TTM)3.84
FCFY1.7%
OCF(TTM)5.09
OCFY2.26%
SpS42.71
BVpS-2.13
TBVpS-7.95
PEG (NY)0.95
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROCE | 35.87% | ||
| ROIC | 30.91% | ||
| ROICexc | 37.06% | ||
| ROICexgc | 51.22% | ||
| OM | 21.19% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.32% | ||
| FCFM | 8.99% |
ROA(3y)5.21%
ROA(5y)9.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.27%
ROIC(5y)18.72%
ROICexc(3y)16.46%
ROICexc(5y)22.64%
ROICexgc(3y)23.54%
ROICexgc(5y)31.58%
ROCE(3y)15.39%
ROCE(5y)21.72%
ROICexcg growth 3Y2.29%
ROICexcg growth 5Y6.53%
ROICexc growth 3Y1.57%
ROICexc growth 5Y6.9%
OM growth 3Y8.07%
OM growth 5Y10.02%
PM growth 3Y4.52%
PM growth 5Y11.07%
GM growth 3Y5.89%
GM growth 5Y5.48%
F-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 105.58% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 5.95 | ||
| Cash Conversion | 49.7% | ||
| Profit Quality | 55.68% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 4.06 |
F-Score7
WACC8.29%
ROIC/WACC3.73
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 Y29.3%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
EPS Next 5Y13.89%
Revenue 1Y (TTM)38.86%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%29.52%
Revenue Next Year15.96%
Revenue Next 2Y13.39%
Revenue Next 3Y10.79%
Revenue Next 5Y9.96%
EBIT growth 1Y356.87%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year57.52%
EBIT Next 3Y25.4%
EBIT Next 5Y16.92%
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%