SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
261.94 USD
+3.73 (+1.44%)
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 has an excellent profitability rating, but there are concerns on its financial health. STX is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
STX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STX has a Return On Assets of 20.29%. This is amongst the best in 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.
STX had an Average Return On Invested Capital over the past 3 years of 13.27%. This 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 has a better Profit Margin (17.92%) than 88.57% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.34%, STX belongs to the top 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.
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.
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
STX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The Debt to FCF ratio of STX (4.10) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.25
WACC8.47%
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.
The Current ratio of STX (0.98) is worse than 71.43% of its industry peers.
A Quick Ratio of 0.62 indicates that STX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, STX is doing worse than 74.29% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
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
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.
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
STX is valuated quite expensively with a Price/Earnings ratio of 28.69.
Compared to the rest of the industry, the Price/Earnings ratio of STX is on the same level as its industry peers.
STX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
STX is valuated rather expensively with a Price/Forward Earnings ratio of 17.84.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio is at 34.59. STX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as STX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.8 | ||
| EV/EBITDA | 23.64 |
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.
STX's earnings are expected to grow with 26.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)2.78
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.
With a Dividend Yield of 1.13, STX pays less dividend than the S&P500 average, which is at 2.44.
| 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 paid a dividend for at least 10 years, which is 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.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y34.64%
EPS Next 3Y26.13%
NASDAQ:STX (11/17/2025, 3:55:00 PM)
261.94
+3.73 (+1.44%)
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 Cap55.79B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts78.67
Price Target234.86 (-10.34%)
Short Float %7.09%
Short Ratio3.71
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 | 28.69 | ||
| Fwd PE | 17.84 | ||
| P/S | 5.84 | ||
| P/FCF | 45.8 | ||
| P/OCF | 36.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.64 |
EPS(TTM)9.13
EY3.49%
EPS(NY)14.68
Fwd EY5.61%
FCF(TTM)5.72
FCFY2.18%
OCF(TTM)7.14
OCFY2.72%
SpS44.88
BVpS-0.3
TBVpS-6.03
PEG (NY)0.7
PEG (5Y)2.78
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
WACC8.47%
ROIC/WACC5.25
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 28.69 and the Price/Book (PB) ratio is -885.48.
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%.