275.39 USD
-4.69 (-1.67%)
275.39 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to STX. STX was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. STX scores excellent on profitability, but there are concerns on its financial health. STX is not overvalued while it is showing excellent growth. This is an interesting combination.
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 20.29%, STX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
The Return On Invested Capital of STX (44.46%) is better than 97.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STX is below the industry average of 16.06%.
The last Return On Invested Capital (44.46%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.29% | ||
| ROE | N/A | ||
| ROIC | 44.46% |
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
STX's Profit Margin of 17.92% is amongst the best of the industry. STX outperforms 94.29% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.34%, STX belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Operating Margin of STX has grown nicely.
With a decent Gross Margin value of 37.00%, STX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
STX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.34% | ||
| PM (TTM) | 17.92% | ||
| GM | 37% |
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.
Compared to 1 year ago, STX has more shares outstanding
Compared to 5 years ago, STX has less shares outstanding
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 4.10, which is a neutral value as it means it would take STX, 4.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.10, STX is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.21
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.98 indicates that STX may have some problems paying its short term obligations.
The Current ratio of STX (0.98) is worse than 65.71% of its industry peers.
STX has a Quick Ratio of 0.98. 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 (0.62) is worse than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.43%, which is quite impressive.
The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.56%.
STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.84% yearly.
EPS 1Y (TTM)196.43%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%65.19%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
3.2 Future
The Earnings Per Share is expected to grow by 27.43% on average over the next years. This is a very strong growth
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.52% yearly.
EPS Next Y43.32%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
EPS Next 5Y27.43%
Revenue Next Year20.83%
Revenue Next 2Y17.99%
Revenue Next 3Y13.81%
Revenue Next 5Y13.52%
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
A Price/Earnings ratio of 30.16 indicates a quite expensive valuation of STX.
Based on the Price/Earnings ratio, STX is valued a bit cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. STX is around the same levels.
A Price/Forward Earnings ratio of 18.01 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 rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STX indicates a somewhat cheap valuation: STX is cheaper than 62.86% of the companies listed 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 | 49.26 | ||
| EV/EBITDA | 25.66 |
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 28.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)2.93
EPS Next 2Y37.39%
EPS Next 3Y28.39%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.04%.
Compared to an average industry Dividend Yield of 0.58, STX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.08%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
STX pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
275.39
-4.69 (-1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.44%
Inst Owner Change-1.9%
Ins Owners0.3%
Ins Owner Change-4.24%
Market Cap60.00B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target303.97 (10.38%)
Short Float %6.25%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
DP35.38%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.77%
Min EPS beat(2)4.67%
Max EPS beat(2)8.88%
EPS beat(4)4
Avg EPS beat(4)7.2%
Min EPS beat(4)4.67%
Max EPS beat(4)8.88%
EPS beat(8)8
Avg EPS beat(8)46.5%
EPS beat(12)10
Avg EPS beat(12)19.06%
EPS beat(16)11
Avg EPS beat(16)10.99%
Revenue beat(2)1
Avg Revenue beat(2)0.96%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)4
Avg Revenue beat(12)-1.33%
Revenue beat(16)4
Avg Revenue beat(16)-1.77%
PT rev (1m)7.43%
PT rev (3m)75.12%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)1.51%
EPS NY rev (3m)10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 18.01 | ||
| P/S | 6.28 | ||
| P/FCF | 49.26 | ||
| P/OCF | 39.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.66 |
EPS(TTM)9.13
EY3.32%
EPS(NY)15.29
Fwd EY5.55%
FCF(TTM)5.59
FCFY2.03%
OCF(TTM)6.98
OCFY2.53%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.7
PEG (5Y)2.93
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.29% | ||
| ROE | N/A | ||
| ROCE | 51.58% | ||
| ROIC | 44.46% | ||
| ROICexc | 59.85% | ||
| ROICexgc | 96.53% | ||
| OM | 23.34% | ||
| PM (TTM) | 17.92% | ||
| GM | 37% | ||
| FCFM | 12.74% |
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%
ROICexgc growth 3Y2.29%
ROICexgc 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-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 116.6% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.04% | ||
| Profit Quality | 71.1% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | N/A |
F-Score6
WACC8.53%
ROIC/WACC5.21
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)196.43%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%65.19%
EPS Next Y43.32%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
EPS Next 5Y27.43%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
Revenue Next Year20.83%
Revenue Next 2Y17.99%
Revenue Next 3Y13.81%
Revenue Next 5Y13.52%
EBIT growth 1Y134.1%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year72.03%
EBIT Next 3Y34.67%
EBIT Next 5Y24.79%
FCF growth 1Y113.31%
FCF growth 3Y-13.77%
FCF growth 5Y-6.24%
OCF growth 1Y84.47%
OCF growth 3Y-13.22%
OCF growth 5Y-8.77%
SEAGATE TECHNOLOGY HOLDINGS / STX FAQ
What is the fundamental rating for STX stock?
ChartMill assigns a fundamental rating of 6 / 10 to STX.
Can you provide the valuation status for SEAGATE TECHNOLOGY HOLDINGS?
ChartMill assigns a valuation rating of 5 / 10 to SEAGATE TECHNOLOGY HOLDINGS (STX). This can be considered as Fairly Valued.
Can you provide the profitability details for SEAGATE TECHNOLOGY HOLDINGS?
SEAGATE TECHNOLOGY HOLDINGS (STX) has a profitability rating of 8 / 10.
How financially healthy is SEAGATE TECHNOLOGY HOLDINGS?
The financial health rating of SEAGATE TECHNOLOGY HOLDINGS (STX) is 3 / 10.
Can you provide the expected EPS growth for STX stock?
The Earnings per Share (EPS) of SEAGATE TECHNOLOGY HOLDINGS (STX) is expected to grow by 43.32% in the next year.