SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
279.35 USD
+0.88 (+0.32%)
282 USD
+2.65 (+0.95%)
Taking everything into account, STX scores 6 out of 10 in our fundamental rating. STX was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While STX has a great profitability rating, there are quite some concerns on its financial health. STX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year STX was profitable.
In the past year STX had a positive cash flow from operations.
Of the past 5 years STX 4 years were profitable.
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 20.29%, STX belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
STX has a Return On Invested Capital of 44.46%. This is amongst the best in the industry. STX outperforms 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 16.54%.
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
Looking at the Profit Margin, with a value of 17.92%, STX belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Profit Margin of STX has grown nicely.
STX's Operating Margin of 23.34% is amongst the best of the industry. STX outperforms 91.43% of its industry peers.
STX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.00%, STX is in the better half of 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 | 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.
The number of shares outstanding for STX has been increased compared to 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 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.
STX has a better Debt to FCF ratio (4.10) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.26
WACC8.46%
2.3 Liquidity
STX has a Current 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.
With a Current ratio value of 0.98, STX is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that STX may have some problems paying its short term obligations.
STX's Quick ratio of 0.62 is on the low side compared to the rest of the industry. STX is outperformed by 71.43% 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.
Looking at the last year, STX shows a very strong growth in Revenue. 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
Based on estimates for the next years, STX will show a very strong growth in Earnings Per Share. The EPS will grow by 27.24% on average per year.
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.05% yearly.
EPS Next Y41.2%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
EPS Next 5Y27.24%
Revenue Next Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.24%
Revenue Next 5Y13.05%
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 30.60 indicates a quite expensive valuation of STX.
STX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.06, STX is valued at the same level.
The Price/Forward Earnings ratio is 19.02, which indicates a rather expensive current valuation of STX.
The rest of the industry has a similar Price/Forward Earnings ratio as STX.
The average S&P500 Price/Forward Earnings ratio is at 32.73. STX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STX is cheaper than 62.86% 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 | 48.84 | ||
| EV/EBITDA | 25.45 |
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 26.13% in the coming years.
PEG (NY)0.74
PEG (5Y)2.97
EPS Next 2Y34.64%
EPS Next 3Y26.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, STX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, STX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, STX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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
35.38% 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.
DP35.38%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
279.35
+0.88 (+0.32%)
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-0.55%
Ins Owners0.3%
Ins Owner Change-7.45%
Market Cap59.49B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts78.67
Price Target234.86 (-15.93%)
Short Float %7.09%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
DP35.38%
Div Incr Years1
Div Non Decr Years11
Ex-Date
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)23.59%
PT rev (3m)43.22%
EPS NQ rev (1m)6.58%
EPS NQ rev (3m)7.87%
EPS NY rev (1m)9.2%
EPS NY rev (3m)16.22%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)3.73%
Revenue NY rev (1m)3.96%
Revenue NY rev (3m)6.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 19.02 | ||
| P/S | 6.22 | ||
| P/FCF | 48.84 | ||
| P/OCF | 39.14 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.45 |
EPS(TTM)9.13
EY3.27%
EPS(NY)14.68
Fwd EY5.26%
FCF(TTM)5.72
FCFY2.05%
OCF(TTM)7.14
OCFY2.55%
SpS44.88
BVpS-0.3
TBVpS-6.03
PEG (NY)0.74
PEG (5Y)2.97
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
WACC8.46%
ROIC/WACC5.26
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 Y41.2%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
EPS Next 5Y27.24%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
Revenue Next Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.24%
Revenue Next 5Y13.05%
EBIT growth 1Y134.1%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year57.52%
EBIT Next 3Y32.1%
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.
What is the valuation status for STX stock?
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.
What are the PE and PB ratios of SEAGATE TECHNOLOGY HOLDINGS (STX) stock?
The Price/Earnings (PE) ratio for SEAGATE TECHNOLOGY HOLDINGS (STX) is 30.6 and the Price/Book (PB) ratio is -944.34.
How sustainable is the dividend of SEAGATE TECHNOLOGY HOLDINGS (STX) stock?
The dividend rating of SEAGATE TECHNOLOGY HOLDINGS (STX) is 6 / 10 and the dividend payout ratio is 35.38%.