278.79 USD
+13.16 (+4.95%)
279.5 USD
+0.71 (+0.25%)
Taking everything into account, STX scores 6 out of 10 in our fundamental rating. 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 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.
In the past year STX had a positive cash flow from operations.
Of the past 5 years STX 4 years were profitable.
In the past 5 years STX always reported a positive cash flow from operatings.
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.
Looking at the Return On Invested Capital, with a value of 44.46%, STX belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STX is below the industry average of 15.32%.
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
The Profit Margin of STX (17.92%) is better than 88.57% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
STX's Operating Margin of 23.34% is amongst the best of the industry. STX outperforms 91.43% of its industry peers.
In the last couple of years the Operating Margin of STX has grown nicely.
STX has a better Gross Margin (37.00%) 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STX is creating value.
Compared to 1 year ago, STX has more shares outstanding
STX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, STX has an improved debt to assets ratio.
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.
STX's Debt to FCF ratio of 4.10 is fine compared to the rest of the industry. STX outperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.24
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.98 indicates that STX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, STX is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that STX may have some problems paying its short term obligations.
STX has a Quick ratio of 0.62. This is in the lower half of the industry: STX underperforms 71.43% 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.
Measured over the past years, STX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.31% on average per year.
Looking at the last year, STX shows a very strong growth in Revenue. The Revenue has grown by 31.56%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -2.84% on average per year.
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 Y41.2%
EPS Next 2Y34.64%
EPS Next 3Y26.21%
EPS Next 5Y27.43%
Revenue Next Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.77%
Revenue Next 5Y13.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 30.54, the valuation of STX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as STX.
STX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
Based on the Price/Forward Earnings ratio of 18.99, the valuation of STX can be described as rather expensive.
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.
STX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STX.
STX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.87 | ||
| EV/EBITDA | 24.8 |
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.
A more expensive valuation may be justified as STX's earnings are expected to grow with 26.21% in the coming years.
PEG (NY)0.74
PEG (5Y)2.96
EPS Next 2Y34.64%
EPS Next 3Y26.21%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.11%. 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 1.92.
With a Dividend Yield of 1.11, STX pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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 3Y26.21%
278.79
+13.16 (+4.95%)
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-2.02%
Ins Owners0.3%
Ins Owner Change-3.72%
Market Cap60.74B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target296 (6.17%)
Short Float %6.11%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)20.47%
PT rev (3m)68.78%
EPS NQ rev (1m)6.26%
EPS NQ rev (3m)7.81%
EPS NY rev (1m)7.81%
EPS NY rev (3m)10.41%
Revenue NQ rev (1m)2.76%
Revenue NQ rev (3m)3.69%
Revenue NY rev (1m)3.35%
Revenue NY rev (3m)4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.54 | ||
| Fwd PE | 18.99 | ||
| P/S | 6.35 | ||
| P/FCF | 49.87 | ||
| P/OCF | 39.96 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.8 |
EPS(TTM)9.13
EY3.27%
EPS(NY)14.68
Fwd EY5.27%
FCF(TTM)5.59
FCFY2.01%
OCF(TTM)6.98
OCFY2.5%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.74
PEG (5Y)2.96
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
WACC8.49%
ROIC/WACC5.24
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 3Y26.21%
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 Year20.56%
Revenue Next 2Y17.37%
Revenue Next 3Y13.77%
Revenue Next 5Y13.52%
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 30.54 and the Price/Book (PB) ratio is -964.13.
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%.