SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
260.32 USD
+6.46 (+2.54%)
STX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. STX scores excellent on profitability, but there are concerns on its financial health. STX is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year STX was profitable.
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.
1.2 Ratios
STX's Return On Assets of 20.29% is amongst the best of the industry. STX outperforms 94.29% of its industry peers.
STX has a better Return On Invested Capital (44.46%) than 97.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STX is below the industry average of 16.16%.
The 3 year average ROIC (13.27%) for STX is below the current ROIC(44.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.29% | ||
| ROE | N/A | ||
| ROIC | 44.46% |
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
The Profit Margin of STX (17.92%) is better than 88.57% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.34%, STX belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
STX's Operating Margin has improved in the last couple of years.
STX's Gross Margin of 37.00% is fine compared to the rest of the industry. STX outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of STX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.34% | ||
| PM (TTM) | 17.92% | ||
| GM | 37% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STX is creating value.
STX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STX has been reduced compared to 5 years ago.
STX has a better debt/assets ratio than last year.
2.2 Solvency
STX has a debt to FCF ratio of 4.10. This is a neutral value as STX would need 4.10 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.10, STX is doing good in the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.26
WACC8.45%
2.3 Liquidity
STX has a Current Ratio of 0.98. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, STX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
STX has a Quick Ratio of 0.98. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of STX (0.62) is worse than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.43%, which is quite impressive.
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 31.56%.
STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.84% yearly.
EPS 1Y (TTM)196.43%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%65.19%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
3.2 Future
STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.24% yearly.
Based on estimates for the next years, STX will show a quite strong growth in Revenue. The Revenue will grow by 13.05% on average per year.
EPS Next Y41.2%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
EPS Next 5Y27.24%
Revenue Next Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.24%
Revenue Next 5Y13.05%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.51, the valuation of STX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STX is on the same level as its industry peers.
STX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.46.
A Price/Forward Earnings ratio of 17.73 indicates a rather expensive valuation of STX.
Based on the Price/Forward Earnings ratio, STX is valued a bit cheaper than 62.86% of the companies in the same industry.
STX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 17.73 |
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 | 45.52 | ||
| EV/EBITDA | 23.27 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
STX's earnings are expected to grow with 26.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)2.77
EPS Next 2Y34.64%
EPS Next 3Y26.13%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, STX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 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
35.38% of the earnings are spent on dividend by STX. This is a low number and sustainable payout ratio.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
NASDAQ:STX (11/19/2025, 2:58:30 PM)
260.32
+6.46 (+2.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.38%
Inst Owner Change-2%
Ins Owners0.3%
Ins Owner Change-20%
Market Cap55.44B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts78.67
Price Target234.86 (-9.78%)
Short Float %6.93%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
DP35.38%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.77%
Min EPS beat(2)4.67%
Max EPS beat(2)8.88%
EPS beat(4)4
Avg EPS beat(4)7.2%
Min EPS beat(4)4.67%
Max EPS beat(4)8.88%
EPS beat(8)8
Avg EPS beat(8)46.5%
EPS beat(12)10
Avg EPS beat(12)19.06%
EPS beat(16)11
Avg EPS beat(16)10.99%
Revenue beat(2)1
Avg Revenue beat(2)0.96%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)4
Avg Revenue beat(12)-1.33%
Revenue beat(16)4
Avg Revenue beat(16)-1.77%
PT rev (1m)23.59%
PT rev (3m)43.22%
EPS NQ rev (1m)6.3%
EPS NQ rev (3m)7.81%
EPS NY rev (1m)9.2%
EPS NY rev (3m)16.22%
Revenue NQ rev (1m)2.95%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)3.96%
Revenue NY rev (3m)6.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 17.73 | ||
| P/S | 5.8 | ||
| P/FCF | 45.52 | ||
| P/OCF | 36.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.27 |
EPS(TTM)9.13
EY3.51%
EPS(NY)14.68
Fwd EY5.64%
FCF(TTM)5.72
FCFY2.2%
OCF(TTM)7.14
OCFY2.74%
SpS44.88
BVpS-0.3
TBVpS-6.03
PEG (NY)0.69
PEG (5Y)2.77
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.29% | ||
| ROE | N/A | ||
| ROCE | 51.58% | ||
| ROIC | 44.46% | ||
| ROICexc | 59.85% | ||
| ROICexgc | 96.53% | ||
| OM | 23.34% | ||
| PM (TTM) | 17.92% | ||
| GM | 37% | ||
| FCFM | 12.74% |
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%
ROICexgc growth 3Y2.29%
ROICexgc 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-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 116.6% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.04% | ||
| Profit Quality | 71.1% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | N/A |
F-Score6
WACC8.45%
ROIC/WACC5.26
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)196.43%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%65.19%
EPS Next Y41.2%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
EPS Next 5Y27.24%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
Revenue Next Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.24%
Revenue Next 5Y13.05%
EBIT growth 1Y134.1%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year57.52%
EBIT Next 3Y32.1%
EBIT Next 5Y24.79%
FCF growth 1Y113.31%
FCF growth 3Y-13.77%
FCF growth 5Y-6.24%
OCF growth 1Y84.47%
OCF growth 3Y-13.22%
OCF growth 5Y-8.77%
SEAGATE TECHNOLOGY HOLDINGS / STX FAQ
What is the fundamental rating for STX stock?
ChartMill assigns a fundamental rating of 6 / 10 to STX.
What is the valuation status for STX stock?
ChartMill assigns a valuation rating of 5 / 10 to SEAGATE TECHNOLOGY HOLDINGS (STX). This can be considered as Fairly Valued.
Can you provide the profitability details for SEAGATE TECHNOLOGY HOLDINGS?
SEAGATE TECHNOLOGY HOLDINGS (STX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of SEAGATE TECHNOLOGY HOLDINGS (STX) stock?
The Price/Earnings (PE) ratio for SEAGATE TECHNOLOGY HOLDINGS (STX) is 28.51 and the Price/Book (PB) ratio is -880.01.
How sustainable is the dividend of SEAGATE TECHNOLOGY HOLDINGS (STX) stock?
The dividend rating of SEAGATE TECHNOLOGY HOLDINGS (STX) is 6 / 10 and the dividend payout ratio is 35.38%.