SEAGATE TECHNOLOGY HOLDINGS (STX)
IE00BKVD2N49 - Common Stock
Overall STX gets a fundamental rating of 3 out of 10. We evaluated STX against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of STX have multiple concerns. STX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STX has reported negative net income.
STX had a positive operating cash flow in the past year.
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
STX has a worse Return On Assets (-10.18%) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.18% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)8.86%
ROA(5y)12.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of STX has declined.
The Gross Margin of STX (17.52%) is worse than 81.25% of its industry peers.
STX's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for STX so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.52% |
OM growth 3Y-60.47%
OM growth 5Y-44.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-12.21%
GM growth 5Y-9.46%
2. Health
2.1 Basic Checks
STX does not have a ROIC to compare to the WACC, probably because it is not profitable.
STX has less shares outstanding than it did 1 year ago.
STX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STX is higher compared to a year ago.
2.2 Solvency
STX has an Altman-Z score of 0.32. This is a bad value and indicates that STX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.32, STX is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
STX has a debt to FCF ratio of 11.38. This is a negative value and a sign of low solvency as STX would need 11.38 years to pay back of all of its debts.
The Debt to FCF ratio of STX (11.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.38 | ||
| Altman-Z | 0.32 |
ROIC/WACCN/A
WACC6.98%
2.3 Liquidity
A Current Ratio of 1.04 indicates that STX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, STX is not doing good in the industry: 87.50% 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 has a worse Quick ratio (0.62) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for STX have decreased strongly by -113.86% in the last year.
The earnings per share for STX have been decreasing by -49.57% on average. This is quite bad
The Revenue for STX has decreased by -30.81% in the past year. This is quite bad
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -7.97% on average per year.
EPS 1Y (TTM)-113.86%
EPS 3Y-66.89%
EPS 5Y-49.57%
EPS growth Q2Q-25%
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y-11.1%
Revenue growth 5Y-7.97%
Revenue growth Q2Q-17.59%
3.2 Future
The Earnings Per Share is expected to grow by 111.71% on average over the next years. This is a very strong growth
STX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.91% yearly.
EPS Next Y313.01%
EPS Next 2Y426.75%
EPS Next 3Y239.92%
EPS Next 5Y111.71%
Revenue Next Year-12.95%
Revenue Next 2Y7.8%
Revenue Next 3Y8.02%
Revenue Next 5Y4.91%
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
The Price/Earnings Ratio is negative for STX. In the last year negative earnings were reported.
STX is valuated rather expensively with a Price/Forward Earnings ratio of 17.23.
STX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STX is cheaper than 62.50% of the companies in the same industry.
STX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 36.2 | ||
| EV/EBITDA | 64.17 |
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.
A more expensive valuation may be justified as STX's earnings are expected to grow with 239.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y426.75%
EPS Next 3Y239.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, STX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.75, STX pays a better dividend. On top of this STX pays more dividend than 93.75% of the companies listed in the same industry.
STX's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of STX has a limited annual growth rate of 2.17%.
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)2.17%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
The earnings of STX are negative and hence is the payout ratio. STX will probably not be able to sustain this dividend level.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-79.81%
EPS Next 2Y426.75%
EPS Next 3Y239.92%
SEAGATE TECHNOLOGY HOLDINGS
NASDAQ:STX (4/26/2024, 7:18:03 PM)
After market: 86.3 +0.26 (+0.3%)86.04
-1.22 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.18% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-113.86%
EPS 3Y-66.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y313.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y-11.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y