407.69 USD
-38.88 (-8.71%)
At close: Jan 30, 2026
411.706 USD
+4.02 (+0.99%)
After Hours: 1/30/2026, 8:20:09 PM
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 some minor 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.
- STX had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years STX had a positive operating cash flow.
1.2 Ratios
- STX has a Return On Assets of 22.62%. This is amongst the best in the industry. STX outperforms 94.29% of its industry peers.
- STX has a better Return On Equity (429.19%) than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 45.09%, STX belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for STX is below the industry average of 15.92%.
- The last Return On Invested Capital (45.09%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.62% | ||
| ROE | 429.19% | ||
| ROIC | 45.09% |
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 19.59%, STX belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of STX has grown nicely.
- STX has a Operating Margin of 25.73%. This is amongst the best in the industry. STX outperforms 94.29% of its industry peers.
- In the last couple of years the Operating Margin of STX has grown nicely.
- With a decent Gross Margin value of 38.78%, STX is doing good in 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 | 25.73% | ||
| PM (TTM) | 19.59% | ||
| GM | 38.78% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STX is creating value.
- STX has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, STX has less shares outstanding
- Compared to 1 year ago, STX has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of STX is 2.69, which is a good value as it means it would take STX, 2.69 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of STX (2.69) is better than 71.43% of its industry peers.
- STX has a Debt/Equity ratio of 7.63. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 7.63, STX is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.63 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | N/A |
ROIC/WACC5.19
WACC8.69%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that STX should not have too much problems paying its short term obligations.
- The Current ratio of STX (1.12) is comparable to the rest of the industry.
- STX has a Quick Ratio of 1.12. 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 has a Quick ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.61%, which is quite impressive.
- The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
- STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.18%.
- 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)104.61%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%53.2%
Revenue 1Y (TTM)25.18%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%21.51%
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 27.43% on average per year.
- The Revenue is expected to grow by 13.52% on average over the next years. This is quite good.
EPS Next Y44.47%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
EPS Next 5Y27.43%
Revenue Next Year21.96%
Revenue Next 2Y19.85%
Revenue Next 3Y15.93%
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
- With a Price/Earnings ratio of 39.93, STX can be considered very expensive at the moment.
- STX's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, STX is valued a bit more expensive.
- STX is valuated quite expensively with a Price/Forward Earnings ratio of 26.45.
- STX's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, STX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.93 | ||
| Fwd PE | 26.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STX is on the same level as its industry peers.
- STX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.03 | ||
| EV/EBITDA | 32.35 |
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 30.15% in the coming years.
PEG (NY)0.9
PEG (5Y)3.87
EPS Next 2Y37.94%
EPS Next 3Y30.15%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, STX is not a good candidate for dividend investing.
- STX's Dividend Yield is a higher than the industry average which is at 0.65.
- With a Dividend Yield of 0.66, STX pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 31.07% 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.
DP31.07%
EPS Next 2Y37.94%
EPS Next 3Y30.15%
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 4 / 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 4 / 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 44.47% in the next year.