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SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis

NASDAQ:STX - Nasdaq - IE00BKVD2N49 - Common Stock - Currency: USD

100.85  -1.79 (-1.74%)

After market: 100.3 -0.55 (-0.55%)

Fundamental Rating

5

STX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. There are concerns on the financial health of STX while its profitability can be described as average. STX may be a bit undervalued, certainly considering the very reasonable score on growth STX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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6

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.
STX Yearly Net Income VS EBIT VS OCF VS FCFSTX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

STX's Return On Assets of 14.81% is amongst the best of the industry. STX outperforms 90.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.35%, STX belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STX is significantly below the industry average of 17.13%.
The 3 year average ROIC (11.70%) for STX is below the current ROIC(20.35%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 14.81%
ROE N/A
ROIC 20.35%
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
STX Yearly ROA, ROE, ROICSTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 1K 1.5K

1.3 Margins

STX's Profit Margin of 14.67% is amongst the best of the industry. STX outperforms 93.55% of its industry peers.
STX's Profit Margin has declined in the last couple of years.
STX has a better Operating Margin (16.79%) than 90.32% of its industry peers.
STX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.75%, STX perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
STX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 16.79%
PM (TTM) 14.67%
GM 31.75%
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%
STX Yearly Profit, Operating, Gross MarginsSTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STX is creating value.
The number of shares outstanding for STX has been increased compared to 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 a worse debt to assets ratio.
STX Yearly Shares OutstandingSTX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
STX Yearly Total Debt VS Total AssetsSTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

STX has a debt to FCF ratio of 8.29. This is a slightly negative value and a sign of low solvency as STX would need 8.29 years to pay back of all of its debts.
The Debt to FCF ratio of STX (8.29) is better than 64.52% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.29
Altman-Z N/A
ROIC/WACC2.53
WACC8.04%
STX Yearly LT Debt VS Equity VS FCFSTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

STX has a Current Ratio of 1.23. 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 1.23, STX is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that STX may have some problems paying its short term obligations.
STX has a Quick ratio of 0.74. This is in the lower half of the industry: STX underperforms 74.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 0.74
STX Yearly Current Assets VS Current LiabilitesSTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 991.07% over the past year.
Measured over the past years, STX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.23% on average per year.
STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.17%.
STX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.81% yearly.
EPS 1Y (TTM)991.07%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%1591.67%
Revenue 1Y (TTM)24.17%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.52%

3.2 Future

Based on estimates for the next years, STX will show a very strong growth in Earnings Per Share. The EPS will grow by 43.64% on average per year.
Based on estimates for the next years, STX will show a quite strong growth in Revenue. The Revenue will grow by 10.05% on average per year.
EPS Next Y487.41%
EPS Next 2Y179.31%
EPS Next 3Y99.14%
EPS Next 5Y43.64%
Revenue Next Year36.91%
Revenue Next 2Y24.84%
Revenue Next 3Y15.29%
Revenue Next 5Y10.05%

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.
STX Yearly Revenue VS EstimatesSTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
STX Yearly EPS VS EstimatesSTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 20.21, STX is valued on the expensive side.
Based on the Price/Earnings ratio, STX is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
STX is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.10, the valuation of STX can be described as reasonable.
Based on the Price/Forward Earnings ratio, STX is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, STX is valued rather cheaply.
Industry RankSector Rank
PE 20.21
Fwd PE 10.1
STX Price Earnings VS Forward Price EarningsSTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STX is valued a bit cheaper than 64.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STX indicates a somewhat cheap valuation: STX is cheaper than 64.52% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 31.17
EV/EBITDA 16.34
STX Per share dataSTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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 99.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y179.31%
EPS Next 3Y99.14%

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7

5. Dividend

5.1 Amount

STX has a Yearly Dividend Yield of 2.81%.
STX's Dividend Yield is rather good when compared to the industry average which is at 3.03. STX pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, STX pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.81%

5.2 History

The dividend of STX has a limited annual growth rate of 1.79%.
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)1.79%
Div Incr Years1
Div Non Decr Years11
STX Yearly Dividends per shareSTX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

49.96% of the earnings are spent on dividend by STX. This is a bit on the high side, but may be sustainable.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.96%
EPS Next 2Y179.31%
EPS Next 3Y99.14%
STX Yearly Income VS Free CF VS DividendSTX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B 2B
STX Dividend Payout.STX Dividend Payout, showing the Payout Ratio.STX Dividend Payout.PayoutRetained Earnings

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SEAGATE TECHNOLOGY HOLDINGS

NASDAQ:STX (2/21/2025, 8:00:01 PM)

After market: 100.3 -0.55 (-0.55%)

100.85

-1.79 (-1.74%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-21 2025-01-21/amc
Earnings (Next)04-21 2025-04-21/amc
Inst Owners92.34%
Inst Owner Change2.22%
Ins Owners0.38%
Ins Owner Change-0.07%
Market Cap21.35B
Analysts76
Price Target125.7 (24.64%)
Short Float %6.41%
Short Ratio4.29
Dividend
Industry RankSector Rank
Dividend Yield 2.81%
Yearly Dividend2.8
Dividend Growth(5Y)1.79%
DP49.96%
Div Incr Years1
Div Non Decr Years11
Ex-Date03-19 2025-03-19 (0.72)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.18%
Min EPS beat(2)5.16%
Max EPS beat(2)7.19%
EPS beat(4)4
Avg EPS beat(4)15.97%
Min EPS beat(4)5.16%
Max EPS beat(4)37.71%
EPS beat(8)6
Avg EPS beat(8)17.96%
EPS beat(12)7
Avg EPS beat(12)12.79%
EPS beat(16)11
Avg EPS beat(16)10.92%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.61%
Revenue beat(12)2
Avg Revenue beat(12)-2.51%
Revenue beat(16)3
Avg Revenue beat(16)-1.93%
PT rev (1m)1.68%
PT rev (3m)5.56%
EPS NQ rev (1m)-9.91%
EPS NQ rev (3m)17.32%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)-8.86%
Revenue NQ rev (3m)-5.95%
Revenue NY rev (1m)-3.03%
Revenue NY rev (3m)-3.28%
Valuation
Industry RankSector Rank
PE 20.21
Fwd PE 10.1
P/S 2.66
P/FCF 31.17
P/OCF 22.76
P/B N/A
P/tB N/A
EV/EBITDA 16.34
EPS(TTM)4.99
EY4.95%
EPS(NY)9.99
Fwd EY9.9%
FCF(TTM)3.24
FCFY3.21%
OCF(TTM)4.43
OCFY4.39%
SpS37.95
BVpS-5.1
TBVpS-10.85
PEG (NY)0.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 14.81%
ROE N/A
ROCE 27.03%
ROIC 20.35%
ROICexc 27.07%
ROICexgc 40.09%
OM 16.79%
PM (TTM) 14.67%
GM 31.75%
FCFM 8.53%
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 Turnover1.01
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 8.29
Debt/EBITDA 3.25
Cap/Depr 100%
Cap/Sales 3.15%
Interest Coverage 250
Cash Conversion 58.55%
Profit Quality 58.1%
Current Ratio 1.23
Quick Ratio 0.74
Altman-Z N/A
F-Score7
WACC8.04%
ROIC/WACC2.53
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 Y487.41%
EPS Next 2Y179.31%
EPS Next 3Y99.14%
EPS Next 5Y43.64%
Revenue 1Y (TTM)24.17%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.52%
Revenue Next Year36.91%
Revenue Next 2Y24.84%
Revenue Next 3Y15.29%
Revenue Next 5Y10.05%
EBIT growth 1Y12363.6%
EBIT growth 3Y-34.47%
EBIT growth 5Y-22.04%
EBIT Next Year268.66%
EBIT Next 3Y65.75%
EBIT Next 5Y29.36%
FCF growth 1Y-9.27%
FCF growth 3Y-16.19%
FCF growth 5Y-10.54%
OCF growth 1Y-17.43%
OCF growth 3Y-17.35%
OCF growth 5Y-12.22%