STX Fundamental Analysis - SEAGATE TECHNOLOGY HOLDINGS

Fundamental Rating

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. STX scores excellent on profitability, but there are some minor concerns on its financial health. STX is not valued too expensively and it also shows a decent growth rate.

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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.

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.

The Return On Invested Capital of STX (30.91%) is better than 96.97% of its industry peers.

The Average Return On Invested Capital over the past 3 years for STX is in line with the industry average of 14.98%.

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

With an excellent Profit Margin value of 16.15%, STX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.

STX's Profit Margin has improved in the last couple of years.

Looking at the Operating Margin, with a value of 21.19%, STX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.

STX's Operating Margin has improved in the last couple of years.

Looking at the Gross Margin, with a value of 35.32%, STX is in the better half of the industry, outperforming 66.67% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

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 3.84. This indicates that STX is financially healthy and has little risk of bankruptcy at the moment.

The Altman-Z score of STX (3.84) is better than 72.73% of its industry peers.

STX has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as STX would need 6.11 years to pay back of all of its debts.

With a decent Debt to FCF ratio value of 6.11, STX is doing good in 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	3.84

ROIC/WACC3.72

WACC8.32%

2.3 Liquidity

STX has a Current Ratio of 1.38. This is a normal value and indicates that STX is financially healthy and should not expect problems in meeting its short term obligations.

The Current ratio of STX (1.38) is comparable to the rest of the industry.

STX has a Quick Ratio of 1.38. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.

Looking at the Quick ratio, with a value of 0.84, STX is in line with its industry, outperforming 48.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.38
Quick Ratio	0.84

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

The Earnings Per Share is expected to grow by 13.89% on average over the next years. This is quite good.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

STX is valuated quite expensively with a Price/Earnings ratio of 26.33.

Based on the Price/Earnings ratio, STX is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.

STX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 20.59, STX is valued on the expensive side.

STX's Price/Forward Earnings is on the same level as the industry average.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, STX is valued at the same level.

		Industry Rank	Sector Rank
PE	26.33
Fwd PE	20.59

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STX is on the same level as its industry peers.

The rest of the industry has a similar Price/Free Cash Flow ratio as STX.

		Industry Rank	Sector Rank
P/FCF	55.52
EV/EBITDA	22.52

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.

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)0.94

PEG (5Y)2.55

EPS Next 2Y24.03%

EPS Next 3Y19.51%

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5. Dividend

5.1 Amount

STX has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.

STX's Dividend Yield is rather good when compared to the industry average which is at 1.85. STX pays more dividend than 81.82% of the companies in the same industry.

Compared to the average S&P500 Dividend Yield of 2.38, STX is paying slightly less dividend.

		Industry Rank	Sector Rank
Dividend Yield	1.46%

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 their dividend for at least 10 years, which is a reliable track record.

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%

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SEAGATE TECHNOLOGY HOLDINGS

NASDAQ:STX (9/17/2025, 3:12:03 PM)

213.257

+2.13 (+1.01%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryTechnology Hardware, Storage & Peripherals

Earnings (Last)07-29 2025-07-29/amc

Earnings (Next)10-20 2025-10-20/amc

Inst Owners95.54%

Inst Owner Change-0.72%

Ins Owners0.34%

Ins Owner Change-12.65%

Market Cap45.42B

Analysts77.93

Price Target173.58 (-18.61%)

Short Float %8.5%

Short Ratio4.99

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.46%

Yearly Dividend2.84

Dividend Growth(5Y)2.08%

DP40.84%

Div Incr Years1

Div Non Decr Years11

Ex-Date09-30 2025-09-30 (0.72)

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)43.04%

EPS NQ rev (1m)0.49%

EPS NQ rev (3m)3.31%

EPS NY rev (1m)5.25%

EPS NY rev (3m)8.92%

Revenue NQ rev (1m)0.12%

Revenue NQ rev (3m)1.51%

Revenue NY rev (1m)1.79%

Revenue NY rev (3m)3.66%

Valuation

		Industry Rank	Sector Rank
PE	26.33
Fwd PE	20.59
P/S	4.99
P/FCF	55.52
P/OCF	41.94
P/B	N/A
P/tB	N/A
EV/EBITDA	22.52

EPS(TTM)8.1

EY3.8%

EPS(NY)10.36

Fwd EY4.86%

FCF(TTM)3.84

FCFY1.8%

OCF(TTM)5.09

OCFY2.38%

SpS42.71

BVpS-2.13

TBVpS-7.95

PEG (NY)0.94

PEG (5Y)2.55

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	3.84

F-Score7

WACC8.32%

ROIC/WACC3.72

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%

SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens