441.24 USD
-1.69 (-0.38%)
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 some minor 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.
- In the past year STX had a positive cash flow from operations.
- STX had positive earnings in 4 of the past 5 years.
- In the past 5 years STX always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 22.62%, STX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 429.19%, STX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- STX has a better Return On Invested Capital (45.09%) than 97.14% of its industry peers.
- STX had an Average Return On Invested Capital over the past 3 years of 13.27%. This is below the industry average of 16.06%.
- The 3 year average ROIC (13.27%) for STX is below the current ROIC(45.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.62% | ||
| ROE | 429.19% | ||
| ROIC | 45.09% |
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 19.59% is amongst the best of the industry. STX outperforms 94.29% of its industry peers.
- In the last couple of years the Profit Margin of STX has grown nicely.
- With an excellent Operating Margin value of 25.73%, STX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- STX's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 38.78%, STX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- In the last couple of years the Gross Margin of STX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.73% | ||
| PM (TTM) | 19.59% | ||
| GM | 38.78% |
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
- 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.
- The number of shares outstanding for STX has been reduced compared to 5 years ago.
- STX has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of STX is 2.69, which is a good value as it means it would take STX, 2.69 years of fcf income to pay off all of its debts.
- STX's Debt to FCF ratio of 2.69 is fine compared to the rest of the industry. STX outperforms 71.43% of its industry peers.
- STX has a Debt/Equity ratio of 7.63. This is a high value indicating a heavy dependency on external financing.
- STX's Debt to Equity ratio of 7.63 is on the low side compared to the rest of the industry. STX is outperformed by 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.63 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | N/A |
ROIC/WACC5.19
WACC8.69%
2.3 Liquidity
- STX has a Current Ratio of 1.12. This is a normal value and indicates that STX is financially healthy and should not expect problems in meeting its short term obligations.
- STX has a Current ratio (1.12) which is in line with its industry peers.
- STX has a Quick Ratio of 1.12. 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 0.72. This is comparable to the rest of the industry: STX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.61%, 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.
- STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.18%.
- STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.84% yearly.
EPS 1Y (TTM)104.61%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%53.2%
Revenue 1Y (TTM)25.18%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.51%
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 27.43% 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 13.52% on average per year.
EPS Next Y44.47%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
EPS Next 5Y27.43%
Revenue Next Year21.96%
Revenue Next 2Y19.85%
Revenue Next 3Y15.93%
Revenue Next 5Y13.52%
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
- A Price/Earnings ratio of 43.22 indicates a quite expensive valuation of STX.
- The rest of the industry has a similar Price/Earnings ratio as STX.
- The average S&P500 Price/Earnings ratio is at 28.60. STX is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 28.63, STX can be considered very expensive at the moment.
- STX's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. STX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.22 | ||
| Fwd PE | 28.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STX is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.39 | ||
| EV/EBITDA | 35.05 |
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.
- STX's earnings are expected to grow with 30.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)4.19
EPS Next 2Y37.94%
EPS Next 3Y30.15%
5. Dividend
5.1 Amount
- STX has a yearly dividend return of 0.80%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.65, STX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 31.07% of its income as dividend. This is a sustainable payout ratio.
- STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.07%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
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 4 / 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 4 / 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 44.47% in the next year.