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SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis

NASDAQ:STX - Nasdaq - IE00BKVD2N49 - Common Stock - Currency: USD

126.07  -0.42 (-0.33%)

After market: 126.05 -0.02 (-0.02%)

Fundamental Rating

5

Overall STX gets a fundamental rating of 5 out of 10. We evaluated STX against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of STX while its profitability can be described as average. STX has a correct valuation and a medium growth rate. STX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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6

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.
Of the past 5 years STX 4 years were profitable.
In the past 5 years STX always reported a positive cash flow from operatings.
STX Yearly Net Income VS EBIT VS OCF VS FCFSTX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

STX has a Return On Assets of 19.75%. This is amongst the best in the industry. STX outperforms 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.04%, STX belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STX is below the industry average of 16.42%.
The last Return On Invested Capital (24.04%) for STX is above the 3 year average (11.70%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 19.75%
ROE N/A
ROIC 24.04%
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
STX Yearly ROA, ROE, ROICSTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

STX's Profit Margin of 17.49% is amongst the best of the industry. STX outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of STX has declined.
STX has a better Operating Margin (19.26%) than 87.50% of its industry peers.
STX's Operating Margin has declined in the last couple of years.
STX has a Gross Margin (33.79%) which is comparable to the rest of the industry.
STX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 19.26%
PM (TTM) 17.49%
GM 33.79%
OM growth 3Y-22.88%
OM growth 5Y-14.5%
PM growth 3Y-25.37%
PM growth 5Y-23.38%
GM growth 3Y-4.96%
GM growth 5Y-3.64%
STX Yearly Profit, Operating, Gross MarginsSTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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3

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.
Compared to 5 years ago, STX has less shares outstanding
The debt/assets ratio for STX is higher compared to a year ago.
STX Yearly Shares OutstandingSTX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
STX Yearly Total Debt VS Total AssetsSTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 2.33 indicates that STX is not a great score, but indicates only limited risk for bankruptcy at the moment.
STX has a Altman-Z score (2.33) which is comparable to the rest of the industry.
STX has a debt to FCF ratio of 6.66. This is a slightly negative value and a sign of low solvency as STX would need 6.66 years to pay back of all of its debts.
STX has a Debt to FCF ratio of 6.66. This is in the better half of the industry: STX outperforms 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.66
Altman-Z 2.33
ROIC/WACC2.93
WACC8.2%
STX Yearly LT Debt VS Equity VS FCFSTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

A Current Ratio of 1.36 indicates that STX should not have too much problems paying its short term obligations.
The Current ratio of STX (1.36) is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that STX may have some problems paying its short term obligations.
STX has a Quick ratio of 0.75. This is in the lower half of the industry: STX underperforms 65.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 0.75
STX Yearly Current Assets VS Current LiabilitesSTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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6

3. Growth

3.1 Past

STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13020.00%, which is quite impressive.
Measured over the past years, STX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.23% on average per year.
The Revenue has grown by 36.29% 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 -8.81% yearly.
EPS 1Y (TTM)13020%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%475.76%
Revenue 1Y (TTM)36.29%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%30.51%

3.2 Future

STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.14% yearly.
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.49% yearly.
EPS Next Y524.6%
EPS Next 2Y172.58%
EPS Next 3Y100.85%
EPS Next 5Y47.14%
Revenue Next Year38.7%
Revenue Next 2Y24.5%
Revenue Next 3Y17.23%
Revenue Next 5Y11.49%

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.
STX Yearly Revenue VS EstimatesSTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
STX Yearly EPS VS EstimatesSTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 19.22, the valuation of STX can be described as rather expensive.
STX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of STX to the average of the S&P500 Index (26.60), we can say STX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.26, the valuation of STX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STX is on the same level as its industry peers.
STX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
Industry RankSector Rank
PE 19.22
Fwd PE 13.26
STX Price Earnings VS Forward Price EarningsSTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

STX's Enterprise Value to EBITDA is on the same level as the industry average.
STX's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 34.61
EV/EBITDA 16.43
STX Per share dataSTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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.
STX has a very decent profitability rating, which may justify a higher PE ratio.
STX's earnings are expected to grow with 100.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y172.58%
EPS Next 3Y100.85%

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7

5. Dividend

5.1 Amount

STX has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.03, STX pays a better dividend. On top of this STX pays more dividend than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, STX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.26%

5.2 History

The dividend of STX has a limited annual growth rate of 1.79%.
STX has been paying a dividend for at least 10 years, so it has a reliable track record.
STX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.79%
Div Incr Years1
Div Non Decr Years11
STX Yearly Dividends per shareSTX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

STX pays out 39.76% 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.
DP39.76%
EPS Next 2Y172.58%
EPS Next 3Y100.85%
STX Yearly Income VS Free CF VS DividendSTX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B 2B
STX Dividend Payout.STX Dividend Payout, showing the Payout Ratio.STX Dividend Payout.PayoutRetained Earnings

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SEAGATE TECHNOLOGY HOLDINGS

NASDAQ:STX (6/12/2025, 8:00:01 PM)

After market: 126.05 -0.02 (-0.02%)

126.07

-0.42 (-0.33%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners92.34%
Inst Owner Change3.93%
Ins Owners0.38%
Ins Owner Change-0.85%
Market Cap26.75B
Analysts76.43
Price Target121.35 (-3.74%)
Short Float %8.36%
Short Ratio3.95
Dividend
Industry RankSector Rank
Dividend Yield 2.26%
Yearly Dividend2.8
Dividend Growth(5Y)1.79%
DP39.76%
Div Incr Years1
Div Non Decr Years11
Ex-Date06-25 2025-06-25 (0.72)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.62%
Min EPS beat(2)7.19%
Max EPS beat(2)8.05%
EPS beat(4)4
Avg EPS beat(4)14.53%
Min EPS beat(4)5.16%
Max EPS beat(4)37.71%
EPS beat(8)7
Avg EPS beat(8)47.94%
EPS beat(12)8
Avg EPS beat(12)13.67%
EPS beat(16)11
Avg EPS beat(16)10.76%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.66%
Revenue beat(12)3
Avg Revenue beat(12)-2.42%
Revenue beat(16)3
Avg Revenue beat(16)-1.95%
PT rev (1m)7.96%
PT rev (3m)-2.09%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)15.31%
EPS NY rev (1m)6.74%
EPS NY rev (3m)6.23%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)4.36%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.38%
Valuation
Industry RankSector Rank
PE 19.22
Fwd PE 13.26
P/S 3.13
P/FCF 34.61
P/OCF 26.52
P/B N/A
P/tB N/A
EV/EBITDA 16.43
EPS(TTM)6.56
EY5.2%
EPS(NY)9.51
Fwd EY7.54%
FCF(TTM)3.64
FCFY2.89%
OCF(TTM)4.75
OCFY3.77%
SpS40.24
BVpS-3.91
TBVpS-9.65
PEG (NY)0.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 19.75%
ROE N/A
ROCE 31.93%
ROIC 24.04%
ROICexc 28.55%
ROICexgc 39.7%
OM 19.26%
PM (TTM) 17.49%
GM 33.79%
FCFM 9.05%
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
ROICexc(3y)13.88%
ROICexc(5y)17.94%
ROICexgc(3y)19.58%
ROICexgc(5y)25.16%
ROCE(3y)15.55%
ROCE(5y)18.99%
ROICexcg growth 3Y-23.55%
ROICexcg growth 5Y-15.5%
ROICexc growth 3Y-26.97%
ROICexc growth 5Y-17.2%
OM growth 3Y-22.88%
OM growth 5Y-14.5%
PM growth 3Y-25.37%
PM growth 5Y-23.38%
GM growth 3Y-4.96%
GM growth 5Y-3.64%
F-Score7
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.66
Debt/EBITDA 2.71
Cap/Depr 93.28%
Cap/Sales 2.76%
Interest Coverage 250
Cash Conversion 53.16%
Profit Quality 51.74%
Current Ratio 1.36
Quick Ratio 0.75
Altman-Z 2.33
F-Score7
WACC8.2%
ROIC/WACC2.93
Cap/Depr(3y)80.76%
Cap/Depr(5y)104.42%
Cap/Sales(3y)3.81%
Cap/Sales(5y)4.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13020%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%475.76%
EPS Next Y524.6%
EPS Next 2Y172.58%
EPS Next 3Y100.85%
EPS Next 5Y47.14%
Revenue 1Y (TTM)36.29%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%30.51%
Revenue Next Year38.7%
Revenue Next 2Y24.5%
Revenue Next 3Y17.23%
Revenue Next 5Y11.49%
EBIT growth 1Y1175.19%
EBIT growth 3Y-34.47%
EBIT growth 5Y-22.04%
EBIT Next Year279.16%
EBIT Next 3Y70.27%
EBIT Next 5Y32%
FCF growth 1Y36.33%
FCF growth 3Y-16.19%
FCF growth 5Y-10.54%
OCF growth 1Y11.49%
OCF growth 3Y-17.35%
OCF growth 5Y-12.22%