SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
NASDAQ:STX - Nasdaq - 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. While STX is still in line with the averages on profitability rating, there are concerns on its financial health. STX may be a bit undervalued, certainly considering the very reasonable score on growth STX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year STX was profitable.
In the past year STX had a positive cash flow from operations.
Of the past 5 years STX 4 years were profitable.
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 83.87% of the companies in the same industry.
STX has a Return On Invested Capital of 14.91%. This is in the better half of the industry: STX outperforms 77.42% of its industry peers.
STX had an Average Return On Invested Capital over the past 3 years of 11.70%. This is below the industry average of 16.39%.
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
STX's Profit Margin of 11.34% is amongst the best of the industry. STX outperforms 90.32% of its industry peers.
In the last couple of years the Profit Margin of STX has declined.
The Operating Margin of STX (13.12%) is better than 87.10% of its industry peers.
In the last couple of years the Operating Margin of STX has declined.
Looking at the Gross Margin, with a value of 28.92%, STX is in line with its industry, outperforming 48.39% of the companies in the same 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.
Compared to 1 year ago, STX has more shares outstanding
STX has less shares outstanding than it did 5 years ago.
STX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that STX is in the distress zone and has some risk of bankruptcy.
STX's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. STX is outperformed by 67.74% of its industry peers.
STX has a debt to FCF ratio of 8.95. This is a slightly negative value and a sign of low solvency as STX would need 8.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.95, STX is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.33
WACC11.19%
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.
With a Current ratio value of 1.14, STX is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
STX has a Quick Ratio of 1.14. This is a bad value and indicates that STX is not financially healthy enough and could expect problems in meeting its short term obligations.
STX has a Quick ratio of 0.70. This is in the lower half of the industry: STX underperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 991.07%, which is quite impressive.
The earnings per share for STX have been decreasing by -23.23% on average. This is quite bad
Looking at the last year, STX shows a very negative growth in Revenue. The Revenue has decreased by -11.28% in the last year.
The Revenue has been decreasing by -8.81% on average over the past years.
EPS 1Y (TTM)991.07%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%1591.67%
Revenue 1Y (TTM)-11.28%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.52%
3.2 Future
STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.05% yearly.
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.00% yearly.
EPS Next Y490.17%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
EPS Next 5Y44.05%
Revenue Next Year38.99%
Revenue Next 2Y25.35%
Revenue Next 3Y16.44%
Revenue Next 5Y10%
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 20.29, the valuation of STX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STX indicates a somewhat cheap valuation: STX is cheaper than 64.52% of the companies listed in the same industry.
STX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.32, the valuation of STX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STX indicates a rather cheap valuation: STX is cheaper than 83.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. STX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 10.32 |
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 ratio is a bit cheaper when compared to the industry. STX is cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.78 | ||
| EV/EBITDA | 21.46 |
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)0.04
PEG (5Y)N/A
EPS Next 2Y176.82%
EPS Next 3Y97.47%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, STX pays a better dividend. On top of this STX pays more dividend than 93.55% of the companies listed in the same industry.
STX's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of STX has a limited annual growth rate of 1.80%.
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)1.8%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
71.24% of the earnings are spent on dividend by STX. This is not a sustainable payout ratio.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.24%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
SEAGATE TECHNOLOGY HOLDINGS
NASDAQ:STX (1/21/2025, 8:00:00 PM)
After market: 105.6 +4.35 (+4.3%)101.25
+3.58 (+3.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change-0.11%
Ins Owners0.47%
Ins Owner Change-0.22%
Market Cap21.42B
Analysts74
Price Target122.85 (21.33%)
Short Float %5.91%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend2.8
Dividend Growth(5Y)1.8%
DP71.24%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.44%
Min EPS beat(2)5.16%
Max EPS beat(2)37.71%
EPS beat(4)4
Avg EPS beat(4)85.8%
Min EPS beat(4)5.16%
Max EPS beat(4)286.49%
EPS beat(8)6
Avg EPS beat(8)25%
EPS beat(12)7
Avg EPS beat(12)12.26%
EPS beat(16)11
Avg EPS beat(16)11.29%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-2.24%
Revenue beat(12)2
Avg Revenue beat(12)-2.53%
Revenue beat(16)4
Avg Revenue beat(16)-1.8%
PT rev (1m)0%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.94%
EPS NY rev (1m)0%
EPS NY rev (3m)8.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 10.32 | ||
| P/S | 2.95 | ||
| P/FCF | 33.78 | ||
| P/OCF | 24.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.46 |
EPS(TTM)4.99
EY4.93%
EPS(NY)9.81
Fwd EY9.69%
FCF(TTM)3
FCFY2.96%
OCF(TTM)4.19
OCFY4.14%
SpS34.35
BVpS-6.15
TBVpS-11.91
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | N/A | ||
| ROCE | 19.81% | ||
| ROIC | 14.91% | ||
| ROICexc | 20.08% | ||
| ROICexgc | 30.49% | ||
| OM | 13.12% | ||
| PM (TTM) | 11.34% | ||
| GM | 28.92% | ||
| FCFM | 8.73% |
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
ROICexc(3y)13.88%
ROICexc(5y)17.94%
ROICexgc(3y)19.58%
ROICexgc(5y)25.16%
ROCE(3y)15.55%
ROCE(5y)18.99%
ROICexcg growth 3Y-23.55%
ROICexcg growth 5Y-15.5%
ROICexc growth 3Y-26.97%
ROICexc growth 5Y-17.2%
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%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 76.94% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.21 |
F-Score7
WACC11.19%
ROIC/WACC1.33
Cap/Depr(3y)80.76%
Cap/Depr(5y)104.42%
Cap/Sales(3y)3.81%
Cap/Sales(5y)4.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)991.07%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%1591.67%
EPS Next Y490.17%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
EPS Next 5Y44.05%
Revenue 1Y (TTM)-11.28%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.52%
Revenue Next Year38.99%
Revenue Next 2Y25.35%
Revenue Next 3Y16.44%
Revenue Next 5Y10%
EBIT growth 1Y620.77%
EBIT growth 3Y-34.47%
EBIT growth 5Y-22.04%
EBIT Next Year258.17%
EBIT Next 3Y61.71%
EBIT Next 5Y29.43%
FCF growth 1Y-37.17%
FCF growth 3Y-16.19%
FCF growth 5Y-10.54%
OCF growth 1Y-36.98%
OCF growth 3Y-17.35%
OCF growth 5Y-12.22%