346.1 USD
-0.43 (-0.12%)
346.1 USD
0 (0%)
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. While STX has a great profitability rating, there are quite some 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
- 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.
- STX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.29%, STX belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years for STX is below the industry average of 16.06%.
- 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 94.29% of its industry peers.
- In the last couple of years the Profit Margin of STX has grown nicely.
- Looking at the Operating Margin, with a value of 23.34%, STX belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- STX's Operating Margin has improved in the last couple of years.
- STX has a Gross Margin of 37.00%. This is in the better half of the industry: STX outperforms 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
- STX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- STX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for STX has been reduced compared to 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.
- The Debt to FCF ratio of STX (4.10) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.15
WACC8.64%
2.3 Liquidity
- STX has a Current 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.
- Looking at the Current ratio, with a value of 0.98, STX is doing worse than 65.71% 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 worse Quick ratio (0.62) than 68.57% 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.
- The Earnings Per Share has been growing by 10.31% on average over the past years. This is quite good.
- 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.
- STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.52% yearly.
EPS Next Y43.32%
EPS Next 2Y37.39%
EPS Next 3Y28.39%
EPS Next 5Y27.43%
Revenue Next Year21.06%
Revenue Next 2Y18.16%
Revenue Next 3Y14.05%
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
- The Price/Earnings ratio is 37.91, which means the current valuation is very expensive for STX.
- The rest of the industry has a similar Price/Earnings ratio as STX.
- When comparing the Price/Earnings ratio of STX to the average of the S&P500 Index (27.21), we can say STX is valued slightly more expensively.
- STX is valuated rather expensively with a Price/Forward Earnings ratio of 22.64.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, STX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.91 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
- STX's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.91 | ||
| EV/EBITDA | 31.88 |
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.
- STX has an outstanding profitability rating, which may justify a higher PE ratio.
- STX's earnings are expected to grow with 28.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)3.68
EPS Next 2Y37.39%
EPS Next 3Y28.39%
5. Dividend
5.1 Amount
- STX has a yearly dividend return of 0.85%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.64, STX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 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.
- 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%
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 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.