237.49 USD
-3.01 (-1.25%)
238.25 USD
+0.76 (+0.32%)
Overall STX gets a fundamental rating of 6 out of 10. We evaluated STX 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 growing strongly while it is still valued neutral. This is a good combination!
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
The Return On Assets of STX (20.29%) is better than 94.29% of its industry peers.
The Return On Invested Capital of STX (44.46%) is better than 97.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STX is below the industry average of 15.28%.
The last Return On Invested Capital (44.46%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| 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
STX has a Profit Margin of 17.92%. This is amongst the best in the industry. STX outperforms 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.
In the last couple of years the Operating Margin of STX has grown nicely.
STX has a Gross Margin of 37.00%. This is in the better half of the industry: STX outperforms 71.43% of its industry peers.
STX's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STX is creating value.
STX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STX has less shares outstanding
STX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of STX is 4.10, which is a neutral value as it means it would take STX, 4.10 years of fcf income to pay off all of its debts.
STX has a better Debt to FCF ratio (4.10) than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.31
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.98 indicates that STX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, STX is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that STX may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, STX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 196.43% 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 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
The Earnings Per Share is expected to grow by 27.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.05% on average over the next years. This is quite good.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.01, STX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.47. STX is around the same levels.
The Price/Forward Earnings ratio is 16.17, which indicates a correct valuation of STX.
STX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.42. STX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 16.17 |
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.
STX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.53 | ||
| EV/EBITDA | 21.87 |
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.
A more expensive valuation may be justified as STX's earnings are expected to grow with 26.13% in the coming years.
PEG (NY)0.63
PEG (5Y)2.52
EPS Next 2Y34.64%
EPS Next 3Y26.13%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.23%.
Compared to an average industry Dividend Yield of 2.12, STX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of STX has a limited annual growth rate of 2.08%.
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)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.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.38%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
237.49
-3.01 (-1.25%)
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-1.92%
Ins Owners0.3%
Ins Owner Change-5.89%
Market Cap50.58B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts78.67
Price Target282.94 (19.14%)
Short Float %6.93%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)48.89%
PT rev (3m)68.78%
EPS NQ rev (1m)6.34%
EPS NQ rev (3m)7.81%
EPS NY rev (1m)7.81%
EPS NY rev (3m)10.41%
Revenue NQ rev (1m)2.76%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)3.35%
Revenue NY rev (3m)4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 16.17 | ||
| P/S | 5.29 | ||
| P/FCF | 41.53 | ||
| P/OCF | 33.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.87 |
EPS(TTM)9.13
EY3.84%
EPS(NY)14.68
Fwd EY6.18%
FCF(TTM)5.72
FCFY2.41%
OCF(TTM)7.14
OCFY3.01%
SpS44.88
BVpS-0.3
TBVpS-6.03
PEG (NY)0.63
PEG (5Y)2.52
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
WACC8.37%
ROIC/WACC5.31
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 26.01 and the Price/Book (PB) ratio is -802.83.
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%.