SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
217.51 USD
-2.34 (-1.06%)
217.5 USD
-0.01 (0%)
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. While STX belongs to the best of the industry regarding profitability, 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
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.
STX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STX has a Return On Assets of 18.31%. This is amongst the best in the industry. STX outperforms 96.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.91%, STX belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STX is in line with the industry average of 14.92%.
The 3 year average ROIC (13.27%) for STX is below the current ROIC(30.91%), indicating increased profibility in the last year.
| 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
STX has a Profit Margin of 16.15%. This is amongst the best in the industry. STX outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of STX has grown nicely.
STX has a better Operating Margin (21.19%) than 90.91% of its industry peers.
STX's Operating Margin has improved in the last couple of years.
STX has a better Gross Margin (35.32%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of STX has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STX is creating value.
The number of shares outstanding for STX has been increased compared to 1 year ago.
STX has less shares outstanding than it did 5 years ago.
STX has a better debt/assets ratio than last year.
2.2 Solvency
STX has an Altman-Z score of 3.97. This indicates that STX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.97, STX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.11, STX is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.97 |
ROIC/WACC3.66
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.38 indicates that STX should not have too much problems paying its short term obligations.
STX has a Current ratio of 1.38. This is comparable to the rest of the industry: STX outperforms 45.45% of its industry peers.
A Quick Ratio of 0.84 indicates that STX may have some problems paying its short term obligations.
The Quick ratio of STX (0.84) is comparable to the rest of the industry.
| 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.
Looking at the last year, STX shows a very strong growth in Revenue. The Revenue has grown by 38.86%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -2.84% on average per year.
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.
Based on estimates for the next years, STX will show a quite strong growth in Revenue. The Revenue will grow by 9.96% on average per year.
EPS Next Y27.88%
EPS Next 2Y24.03%
EPS Next 3Y19.51%
EPS Next 5Y13.89%
Revenue Next Year15.68%
Revenue Next 2Y12.78%
Revenue Next 3Y9.94%
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
A Price/Earnings ratio of 26.85 indicates a quite expensive valuation of STX.
Based on the Price/Earnings ratio, STX is valued a bit cheaper than 63.64% of the companies in the same industry.
STX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.00, the valuation of STX can be described as rather expensive.
STX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of STX to the average of the S&P500 Index (22.89), we can say STX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 21 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
STX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.63 | ||
| EV/EBITDA | 23.37 |
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.
The excellent profitability rating of STX may justify a higher PE ratio.
STX's earnings are expected to grow with 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)2.61
EPS Next 2Y24.03%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.33%.
STX's Dividend Yield is a higher than the industry average which is at 2.14.
With a Dividend Yield of 1.33, STX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of STX has a limited annual growth rate of 2.08%.
STX has been paying a dividend for at least 10 years, so it has 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.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.84%
EPS Next 2Y24.03%
EPS Next 3Y19.51%
217.51
-2.34 (-1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change-0.72%
Ins Owners0.34%
Ins Owner Change-8.61%
Market Cap46.32B
Analysts77.93
Price Target173.58 (-20.2%)
Short Float %8.5%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)5.85%
PT rev (3m)41.47%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 21 | ||
| P/S | 5.09 | ||
| P/FCF | 56.63 | ||
| P/OCF | 42.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.37 |
EPS(TTM)8.1
EY3.72%
EPS(NY)10.36
Fwd EY4.76%
FCF(TTM)3.84
FCFY1.77%
OCF(TTM)5.09
OCFY2.34%
SpS42.71
BVpS-2.13
TBVpS-7.95
PEG (NY)0.96
PEG (5Y)2.61
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 | 3.97 |
F-Score7
WACC8.45%
ROIC/WACC3.66
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 Y27.88%
EPS Next 2Y24.03%
EPS Next 3Y19.51%
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 Year15.68%
Revenue Next 2Y12.78%
Revenue Next 3Y9.94%
Revenue Next 5Y9.96%
EBIT growth 1Y356.87%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year53.27%
EBIT Next 3Y22.26%
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%