281.3 USD
-4.92 (-1.72%)
281.52 USD
+0.22 (+0.08%)
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. 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
STX had positive earnings in the past year.
In the past year STX had a positive cash flow from operations.
Of the past 5 years STX 4 years were profitable.
STX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 20.29%, STX belongs to the best of the industry, outperforming 94.29% 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.
The Average Return On Invested Capital over the past 3 years for STX is below the industry average of 15.27%.
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
Looking at the Profit Margin, with a value of 17.92%, STX belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Profit Margin of STX has grown nicely.
The Operating Margin of STX (23.34%) is better than 91.43% of its industry peers.
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
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.
Compared to 1 year ago, STX has an improved debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 4.10, STX is in the better half of 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/WACC5.23
WACC8.5%
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's Current ratio of 0.98 is on the low side compared to the rest of the industry. STX is outperformed by 71.43% of its industry peers.
A Quick Ratio of 0.62 indicates that STX may have some problems paying its short term obligations.
STX's Quick ratio of 0.62 is on the low side compared to the rest of the industry. STX is outperformed by 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 27.43% yearly.
Based on estimates for the next years, STX will show a quite strong growth in Revenue. The Revenue will grow by 13.52% on average per year.
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
A Price/Earnings ratio of 30.81 indicates a quite expensive valuation of STX.
Compared to the rest of the industry, the Price/Earnings ratio of STX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.84, STX is valued at the same level.
With a Price/Forward Earnings ratio of 18.40, STX is valued on the expensive side.
STX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of STX to the average of the S&P500 Index (23.40), we can say STX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
STX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.32 | ||
| EV/EBITDA | 26.6 |
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 28.39% in the coming years.
PEG (NY)0.71
PEG (5Y)2.99
EPS Next 2Y37.39%
EPS Next 3Y28.39%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.04%.
STX's Dividend Yield is a higher than the industry average which is at 0.58.
With a Dividend Yield of 1.04, STX pays less dividend than the S&P500 average, which is at 2.00.
| 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 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 2Y37.39%
EPS Next 3Y28.39%
281.3
-4.92 (-1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.44%
Inst Owner Change-1.9%
Ins Owners0.3%
Ins Owner Change-4.24%
Market Cap61.29B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target303.97 (8.06%)
Short Float %5.84%
Short Ratio2.95
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-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)7.43%
PT rev (3m)75.12%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)1.51%
EPS NY rev (3m)10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 18.4 | ||
| P/S | 6.41 | ||
| P/FCF | 50.32 | ||
| P/OCF | 40.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.6 |
EPS(TTM)9.13
EY3.25%
EPS(NY)15.29
Fwd EY5.44%
FCF(TTM)5.59
FCFY1.99%
OCF(TTM)6.98
OCFY2.48%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.71
PEG (5Y)2.99
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
WACC8.5%
ROIC/WACC5.23
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.
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 30.81 and the Price/Book (PB) ratio is -972.81.
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%.