SEAGATE TECHNOLOGY HOLDINGS (STX)
IE00BKVD2N49 - Common Stock
We assign a fundamental rating of 5 out of 10 to STX. STX was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. While STX is still in line with the averages on profitability rating, there are concerns on its financial health. STX has a decent growth rate and is not valued too expensively. STX also has an excellent dividend rating.
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.
Of the past 5 years STX 4 years were profitable.
Each year in the past 5 years STX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STX (10.34%) is better than 83.87% of its industry peers.
STX's Return On Invested Capital of 14.91% is fine compared to the rest of the industry. STX outperforms 77.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STX is below the industry average of 15.77%.
The 3 year average ROIC (11.70%) for STX is below the current ROIC(14.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | N/A | ||
| ROIC | 14.91% |
ROA(3y)5.25%
ROA(5y)8.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.7%
ROIC(5y)14.3%
1.3 Margins
STX's Profit Margin of 11.34% is amongst the best of the industry. STX outperforms 90.32% of its industry peers.
In the last couple of years the Profit Margin of STX has declined.
STX's Operating Margin of 13.12% is amongst the best of the industry. STX outperforms 87.10% of its industry peers.
STX's Operating Margin has declined in the last couple of years.
The Gross Margin of STX (28.92%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.12% | ||
| PM (TTM) | 11.34% | ||
| GM | 28.92% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STX is creating some value.
STX has more shares outstanding than it did 1 year ago.
STX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for STX is higher compared to a year ago.
2.2 Solvency
STX has an Altman-Z score of 1.02. This is a bad value and indicates that STX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, STX is doing worse than 67.74% of the companies in the same industry.
The Debt to FCF ratio of STX is 8.95, which is on the high side as it means it would take STX, 8.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.95, STX is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.28
WACC11.64%
2.3 Liquidity
A Current Ratio of 1.14 indicates that STX should not have too much problems paying its short term obligations.
STX's Current ratio of 1.14 is on the low side compared to the rest of the industry. STX is outperformed by 77.42% of its industry peers.
STX has a Quick Ratio of 1.14. 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 0.70, STX is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 692.31%, which is quite impressive.
The earnings per share for STX have been decreasing by -23.23% on average. This is quite bad
STX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.79%.
Measured over the past years, STX shows a decrease in Revenue. The Revenue has been decreasing by -8.81% on average per year.
EPS 1Y (TTM)692.31%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%818.18%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.11%
3.2 Future
The Earnings Per Share is expected to grow by 44.05% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.00% on average over the next years. This is quite good.
EPS Next Y490.17%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
EPS Next 5Y44.05%
Revenue Next Year41.19%
Revenue Next 2Y26.51%
Revenue Next 3Y16.67%
Revenue Next 5Y10%
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
Based on the Price/Earnings ratio of 28.35, the valuation of STX can be described as expensive.
STX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, STX is valued at the same level.
Based on the Price/Forward Earnings ratio of 8.90, the valuation of STX can be described as reasonable.
Based on the Price/Forward Earnings ratio, STX is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. STX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA is on the same level as the industry average.
61.29% of the companies in the same industry are more expensive than STX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | 19.01 |
4.3 Compensation for Growth
STX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of STX may justify a higher PE ratio.
STX's earnings are expected to grow with 97.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y176.82%
EPS Next 3Y97.47%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 3.29%.
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 2.34, STX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
The dividend of STX has a limited annual growth rate of 1.80%.
STX has paid a dividend for at least 10 years, which is 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)1.8%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
71.24% of the earnings are spent on dividend by STX. This is not a sustainable payout ratio.
The dividend of STX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.24%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
SEAGATE TECHNOLOGY HOLDINGS
NASDAQ:STX (12/20/2024, 8:00:00 PM)
After market: 87.63 +0.32 (+0.37%)87.31
-0.23 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change-0.45%
Ins Owners0.47%
Ins Owner Change-0.22%
Market Cap18.47B
Analysts74
Price Target122.85 (40.71%)
Short Float %5.52%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Dividend Growth(5Y)1.8%
DP71.24%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.44%
Min EPS beat(2)5.16%
Max EPS beat(2)37.71%
EPS beat(4)4
Avg EPS beat(4)85.8%
Min EPS beat(4)5.16%
Max EPS beat(4)286.49%
EPS beat(8)6
Avg EPS beat(8)25%
EPS beat(12)7
Avg EPS beat(12)12.26%
EPS beat(16)11
Avg EPS beat(16)11.29%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-2.24%
Revenue beat(12)2
Avg Revenue beat(12)-2.53%
Revenue beat(16)4
Avg Revenue beat(16)-1.8%
PT rev (1m)3.82%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.94%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)8.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 8.9 | ||
| P/S | 2.54 | ||
| P/FCF | 29.13 | ||
| P/OCF | 20.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.01 |
EPS(TTM)3.08
EY3.53%
EPS(NY)9.81
Fwd EY11.23%
FCF(TTM)3
FCFY3.43%
OCF(TTM)4.19
OCFY4.8%
SpS34.35
BVpS-6.15
TBVpS-11.91
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.34% | ||
| ROE | N/A | ||
| ROCE | 19.81% | ||
| ROIC | 14.91% | ||
| ROICexc | 20.08% | ||
| ROICexgc | 30.49% | ||
| OM | 13.12% | ||
| PM (TTM) | 11.34% | ||
| GM | 28.92% | ||
| FCFM | 8.73% |
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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.95 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 76.94% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.02 |
F-Score7
WACC11.64%
ROIC/WACC1.28
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)692.31%
EPS 3Y-39.22%
EPS 5Y-23.23%
EPS Q2Q%818.18%
EPS Next Y490.17%
EPS Next 2Y176.82%
EPS Next 3Y97.47%
EPS Next 5Y44.05%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y-15.04%
Revenue growth 5Y-8.81%
Sales Q2Q%49.11%
Revenue Next Year41.19%
Revenue Next 2Y26.51%
Revenue Next 3Y16.67%
Revenue Next 5Y10%
EBIT growth 1Y620.77%
EBIT growth 3Y-34.47%
EBIT growth 5Y-22.04%
EBIT Next Year266.44%
EBIT Next 3Y62.72%
EBIT Next 5Y29.43%
FCF growth 1Y-37.17%
FCF growth 3Y-16.19%
FCF growth 5Y-10.54%
OCF growth 1Y-36.98%
OCF growth 3Y-17.35%
OCF growth 5Y-12.22%