287.54 USD
+12.15 (+4.41%)
288.1 USD
+0.56 (+0.19%)
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 not priced too expensively while it is growing strongly. 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.
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
The Return On Assets of STX (20.29%) is better than 97.14% of its industry peers.
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 last Return On Invested Capital (44.46%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| 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 Profit Margin of 17.92%. This is amongst the best in the industry. STX outperforms 94.29% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
STX has a Operating Margin of 23.34%. This is amongst the best in the industry. STX outperforms 94.29% of its industry peers.
STX's Operating Margin has improved in the last couple of years.
STX's Gross Margin of 37.00% is fine compared to the rest of the industry. STX outperforms 71.43% of its industry peers.
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.
Compared to 1 year ago, STX has more shares outstanding
The number of shares outstanding for STX has been reduced compared to 5 years ago.
The debt/assets ratio for STX has been reduced compared to a year ago.
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/WACC5.21
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.98 indicates that STX may have some problems paying 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.
STX has a Quick 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.
With a Quick ratio value of 0.62, STX is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
| 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.
The Revenue has grown by 31.56% in the past year. This is a very strong growth!
The Revenue has been decreasing by -2.84% on average over the past years.
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 27.43% on average over the next years. This is a very strong growth
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
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.
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
A Price/Earnings ratio of 31.49 indicates a quite expensive valuation of STX.
Based on the Price/Earnings ratio, STX is valued a bit cheaper than 62.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, STX is valued at the same level.
The Price/Forward Earnings ratio is 18.81, which indicates a rather expensive current valuation of STX.
STX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.23. STX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.49 | ||
| Fwd PE | 18.81 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.43 | ||
| EV/EBITDA | 25.66 |
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.
The excellent profitability rating of STX 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)0.73
PEG (5Y)3.06
EPS Next 2Y37.39%
EPS Next 3Y28.39%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.04%. 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 0.58.
Compared to an average S&P500 Dividend Yield of 2.00, 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
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%
287.54
+12.15 (+4.41%)
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 Cap62.65B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target303.97 (5.71%)
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)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 | 31.49 | ||
| Fwd PE | 18.81 | ||
| P/S | 6.55 | ||
| P/FCF | 51.43 | ||
| P/OCF | 41.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.66 |
EPS(TTM)9.13
EY3.18%
EPS(NY)15.29
Fwd EY5.32%
FCF(TTM)5.59
FCFY1.94%
OCF(TTM)6.98
OCFY2.43%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.73
PEG (5Y)3.06
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
WACC8.54%
ROIC/WACC5.21
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.