304.01 USD
+19.54 (+6.87%)
304.481 USD
+0.47 (+0.15%)
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. While STX has a great profitability rating, there are quite some concerns on its financial health. STX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
STX had positive earnings in the past year.
STX had a positive operating cash flow in the past year.
STX had positive earnings in 4 of the past 5 years.
In the past 5 years STX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 20.29%, STX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
STX has a Return On Invested Capital of 44.46%. This is amongst the best in the industry. STX outperforms 97.14% of its industry peers.
STX had an Average Return On Invested Capital over the past 3 years of 13.27%. This is below the industry average of 16.06%.
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
With an excellent Profit Margin value of 17.92%, STX belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
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 94.29% 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 37.00%, STX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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
STX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 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 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.2
WACC8.55%
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 65.71% 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 68.57% of its industry peers.
| 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
STX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.43% yearly.
The Revenue is expected to grow by 13.52% on average over the next years. This is quite good.
EPS Next Y43.32%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
EPS Next 5Y27.43%
Revenue Next Year20.83%
Revenue Next 2Y17.99%
Revenue Next 3Y13.81%
Revenue Next 5Y13.52%
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
Based on the Price/Earnings ratio of 33.30, the valuation of STX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STX indicates a somewhat cheap valuation: STX is cheaper than 62.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. STX is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 19.88, which indicates a rather expensive current valuation of STX.
62.86% of the companies in the same industry are more expensive than STX, based on the Price/Forward Earnings ratio.
STX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STX is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
STX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.38 | ||
| EV/EBITDA | 28.16 |
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 28.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)3.23
EPS Next 2Y37.39%
EPS Next 3Y28.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, STX has a reasonable but not impressive dividend return.
STX's Dividend Yield is a higher than the industry average which is at 0.64.
Compared to an average S&P500 Dividend Yield of 1.90, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 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
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 2Y37.39%
EPS Next 3Y28.39%
304.01
+19.54 (+6.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.9%
Inst Owner Change-0.01%
Ins Owners0.29%
Ins Owner Change-2.74%
Market Cap66.23B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.33
Price Target303.97 (-0.01%)
Short Float %6.25%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
DP35.38%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
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)2.69%
PT rev (3m)59.96%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)6.73%
EPS NY rev (1m)1.22%
EPS NY rev (3m)10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.22%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 19.88 | ||
| P/S | 6.93 | ||
| P/FCF | 54.38 | ||
| P/OCF | 43.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.16 |
EPS(TTM)9.13
EY3%
EPS(NY)15.29
Fwd EY5.03%
FCF(TTM)5.59
FCFY1.84%
OCF(TTM)6.98
OCFY2.29%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.77
PEG (5Y)3.23
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
WACC8.55%
ROIC/WACC5.2
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 Y43.32%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
EPS Next 5Y27.43%
Revenue 1Y (TTM)31.56%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.26%
Revenue Next Year20.83%
Revenue Next 2Y17.99%
Revenue Next 3Y13.81%
Revenue Next 5Y13.52%
EBIT growth 1Y134.1%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year72.03%
EBIT Next 3Y34.67%
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.
Can you provide the valuation status for SEAGATE TECHNOLOGY HOLDINGS?
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.
How financially healthy is SEAGATE TECHNOLOGY HOLDINGS?
The financial health rating of SEAGATE TECHNOLOGY HOLDINGS (STX) is 3 / 10.
Can you provide the expected EPS growth for STX stock?
The Earnings per Share (EPS) of SEAGATE TECHNOLOGY HOLDINGS (STX) is expected to grow by 43.32% in the next year.