SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
240.5 USD
-18.63 (-7.19%)
239 USD
-1.5 (-0.62%)
We assign a fundamental rating of 6 out of 10 to STX. STX was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While STX has a great profitability rating, there are quite some 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
STX had positive earnings in the past year.
In the past year STX had a positive cash flow from operations.
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's Return On Assets of 20.29% is amongst the best of the industry. STX outperforms 94.29% of its industry peers.
With an excellent Return On Invested Capital value of 44.46%, STX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
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
STX's Profit Margin of 17.92% is amongst the best of 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.
STX's Operating Margin has improved in the last couple of years.
The Gross Margin of STX (37.00%) is better than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STX is creating value.
The number of shares outstanding for STX has been increased compared to 1 year ago.
STX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STX has been reduced compared to a year ago.
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.
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/WACC5.27
WACC8.44%
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.
STX has a Current ratio of 0.98. This is in the lower half of the industry: STX underperforms 71.43% of its industry peers.
A Quick Ratio of 0.62 indicates that STX may have some problems paying 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.
The Revenue has grown by 31.56% in the past year. This is a very strong growth!
The Revenue has been decreasing by -2.84% on average over the past years.
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
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.05% yearly.
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
A Price/Earnings ratio of 26.34 indicates a quite expensive valuation of STX.
STX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.07. STX is around the same levels.
With a Price/Forward Earnings ratio of 16.38, STX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of STX to the average of the S&P500 Index (34.08), we can say STX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STX.
The rest of the industry has a similar Price/Free Cash Flow ratio as STX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.05 | ||
| EV/EBITDA | 23.72 |
4.3 Compensation for Growth
STX's 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.
A more expensive valuation may be justified as STX's earnings are expected to grow with 26.13% in the coming years.
PEG (NY)0.64
PEG (5Y)2.56
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.
STX's Dividend Yield is a higher than the industry average which is at 1.95.
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 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
STX pays out 35.38% of its income as dividend. This is a 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%
240.5
-18.63 (-7.19%)
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 Cap51.22B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts78.67
Price Target234.86 (-2.35%)
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 | 26.34 | ||
| Fwd PE | 16.38 | ||
| P/S | 5.36 | ||
| P/FCF | 42.05 | ||
| P/OCF | 33.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.72 |
EPS(TTM)9.13
EY3.8%
EPS(NY)14.68
Fwd EY6.11%
FCF(TTM)5.72
FCFY2.38%
OCF(TTM)7.14
OCFY2.97%
SpS44.88
BVpS-0.3
TBVpS-6.03
PEG (NY)0.64
PEG (5Y)2.56
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
WACC8.44%
ROIC/WACC5.27
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 26.34 and the Price/Book (PB) ratio is -813.
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%.