296.36 USD
+4.36 (+1.49%)
300.01 USD
+3.65 (+1.23%)
STX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 overvalued while it is showing excellent growth. This is an interesting combination.
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 has a better Return On Assets (20.29%) than 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.
The Average Return On Invested Capital over the past 3 years for STX is in line with the industry average of 15.26%.
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.
STX has a Operating Margin of 23.34%. This is amongst the best in the industry. STX outperforms 91.43% of its industry peers.
STX's Operating Margin has improved in the last couple of years.
The Gross Margin of STX (37.00%) is better 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
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.
STX has less shares outstanding than it did 5 years ago.
STX has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 4.10, STX is in the better half of the industry, outperforming 65.71% 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
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.98 indicates that STX may have some problems paying its short term obligations.
STX has a worse Current ratio (0.98) than 71.43% 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
The Earnings Per Share has grown by an impressive 196.43% over the past year.
STX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.31% yearly.
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
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.
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 Y41.6%
EPS Next 2Y35.4%
EPS Next 3Y26.17%
EPS Next 5Y27.43%
Revenue Next Year20.55%
Revenue Next 2Y17.56%
Revenue Next 3Y13.09%
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
Based on the Price/Earnings ratio of 32.46, the valuation of STX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.38, STX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 19.96, STX is valued on the expensive side.
STX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of STX to the average of the S&P500 Index (23.83), we can say STX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 19.96 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.01 | ||
| EV/EBITDA | 27.11 |
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.
STX's earnings are expected to grow with 26.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)3.15
EPS Next 2Y35.4%
EPS Next 3Y26.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, STX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.55, STX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, STX pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
35.38% of the earnings are spent on dividend by STX. This is a low number and sustainable payout ratio.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y35.4%
EPS Next 3Y26.17%
296.36
+4.36 (+1.49%)
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-1.91%
Ins Owners0.3%
Ins Owner Change-4.27%
Market Cap64.57B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target296 (-0.12%)
Short Float %5.84%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)26.03%
PT rev (3m)70.53%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)7.1%
EPS NY rev (1m)0.28%
EPS NY rev (3m)10.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)4.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 19.96 | ||
| P/S | 6.76 | ||
| P/FCF | 53.01 | ||
| P/OCF | 42.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.11 |
EPS(TTM)9.13
EY3.08%
EPS(NY)14.85
Fwd EY5.01%
FCF(TTM)5.59
FCFY1.89%
OCF(TTM)6.98
OCFY2.35%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.78
PEG (5Y)3.15
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
WACC8.53%
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 Y41.6%
EPS Next 2Y35.4%
EPS Next 3Y26.17%
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 Year20.55%
Revenue Next 2Y17.56%
Revenue Next 3Y13.09%
Revenue Next 5Y13.52%
EBIT growth 1Y134.1%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year72.08%
EBIT Next 3Y33.35%
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 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.
What are the PE and PB ratios of SEAGATE TECHNOLOGY HOLDINGS (STX) stock?
The Price/Earnings (PE) ratio for SEAGATE TECHNOLOGY HOLDINGS (STX) is 32.46 and the Price/Book (PB) ratio is -1024.89.
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%.