SEAGATE TECHNOLOGY HOLDINGS (STX)
IE00BKVD2N49 - Common Stock
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 decent growth rate and is not valued too expensively. Finally STX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year STX was profitable.
STX had a positive operating cash flow in the past year.
STX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years STX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.34%, STX belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.91%, STX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STX is significantly below the industry average of 16.81%.
The 3 year average ROIC (11.70%) for STX is below the current ROIC(14.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | N/A | ||
| ROIC | 14.91% |
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
1.3 Margins
The Profit Margin of STX (11.34%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of STX has declined.
STX's Operating Margin of 13.12% is amongst the best of the industry. STX outperforms 84.38% of its industry peers.
STX's Operating Margin has declined in the last couple of years.
STX has a Gross Margin (28.92%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.12% | ||
| PM (TTM) | 11.34% | ||
| GM | 28.92% |
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%
2. Health
2.1 Basic Checks
STX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for STX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that STX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.16, STX is doing worse than 65.63% of the companies in the same industry.
The Debt to FCF ratio of STX is 8.95, which is on the high side as it means it would take STX, 8.95 years of fcf income to pay off all of its debts.
STX has a Debt to FCF ratio (8.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 1.16 |
ROIC/WACC1.41
WACC10.59%
2.3 Liquidity
STX has a Current Ratio of 1.14. 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 of 1.14. This is in the lower half of the industry: STX underperforms 78.13% of its industry peers.
A Quick Ratio of 0.70 indicates that STX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, STX is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 692.31% over the past year.
STX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.23% yearly.
STX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.79%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -8.81% on average per year.
EPS 1Y (TTM)692.31%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%818.18%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.11%
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 60.88% on average per year.
The Revenue is expected to grow by 12.43% on average over the next years. This is quite good.
EPS Next Y493.22%
EPS Next 2Y176.71%
EPS Next 3Y97.47%
EPS Next 5Y60.88%
Revenue Next Year41.55%
Revenue Next 2Y26.49%
Revenue Next 3Y16.67%
Revenue Next 5Y12.43%
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
Based on the Price/Earnings ratio of 32.44, the valuation of STX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as STX.
When comparing the Price/Earnings ratio of STX to the average of the S&P500 Index (28.96), we can say STX is valued inline with the index average.
STX is valuated reasonably with a Price/Forward Earnings ratio of 10.19.
STX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STX is cheaper than 75.00% of the companies in the same industry.
STX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as STX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.34 | ||
| EV/EBITDA | 20.89 |
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 97.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y176.71%
EPS Next 3Y97.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, STX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, STX pays a better dividend. On top of this STX pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, STX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of STX has a limited annual growth rate of 1.80%.
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)1.8%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
STX pays out 71.24% of its income as dividend. This is not a sustainable payout ratio.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.24%
EPS Next 2Y176.71%
EPS Next 3Y97.47%
SEAGATE TECHNOLOGY HOLDINGS
NASDAQ:STX (11/21/2024, 8:00:01 PM)
After market: 100 +0.08 (+0.08%)99.92
+1.9 (+1.94%)
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 Cap21.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(16)
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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 | 32.44 | ||
| Fwd PE | 10.19 | ||
| 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)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.12% | ||
| PM (TTM) | 11.34% | ||
| GM | 28.92% | ||
| 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 | 1.14 | ||
| Quick Ratio | 0.7 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)692.31%
EPS 3Y-39.22%
EPS 5Y
EPS Q2Q%
EPS Next Y493.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-15.04%
Revenue growth 5Y
Sales 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