SEAGATE TECHNOLOGY HOLDINGS (STX) Stock Fundamental Analysis
USA - NASDAQ:STX - IE00BKVD2N49 - Common Stock
212.625 USD
-1.78 (-0.83%)
STX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 34 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 has a decent growth rate and is not valued too expensively.
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.
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 18.31%, STX belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.91%, STX belongs to the best of the industry, outperforming 97.06% 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 14.92%.
The last Return On Invested Capital (30.91%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROIC | 30.91% |
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
With an excellent Profit Margin value of 16.15%, STX belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
STX's Profit Margin has improved in the last couple of years.
The Operating Margin of STX (21.19%) is better than 91.18% of its industry peers.
STX's Operating Margin has improved in the last couple of years.
The Gross Margin of STX (35.32%) is better than 67.65% of its industry peers.
In the last couple of years the Gross Margin of STX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.19% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.32% |
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.
Compared to 1 year ago, STX has more shares outstanding
STX has less shares outstanding than it did 5 years ago.
STX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.89 indicates that STX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.89, STX is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
STX has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as STX would need 6.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.11, STX is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.89 |
ROIC/WACC3.72
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.38 indicates that STX should not have too much problems paying its short term obligations.
STX has a Current ratio of 1.38. This is comparable to the rest of the industry: STX outperforms 47.06% of its industry peers.
A Quick Ratio of 0.84 indicates that STX may have some problems paying its short term obligations.
STX's Quick ratio of 0.84 is in line compared to the rest of the industry. STX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
STX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 532.81%, which is quite impressive.
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 38.86%.
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)532.81%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%146.67%
Revenue 1Y (TTM)38.86%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%29.52%
3.2 Future
Based on estimates for the next years, STX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.89% on average per year.
STX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y29.3%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
EPS Next 5Y13.89%
Revenue Next Year15.96%
Revenue Next 2Y13.39%
Revenue Next 3Y10.79%
Revenue Next 5Y9.96%
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
STX is valuated quite expensively with a Price/Earnings ratio of 26.25.
67.65% of the companies in the same industry are more expensive than STX, based on the Price/Earnings ratio.
STX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.30 indicates a rather expensive valuation of STX.
The rest of the industry has a similar Price/Forward Earnings ratio as STX.
The average S&P500 Price/Forward Earnings ratio is at 23.18. STX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 20.3 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STX is cheaper than 64.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as STX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.36 | ||
| EV/EBITDA | 22.84 |
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.
STX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STX's earnings are expected to grow with 22.39% in the coming years.
PEG (NY)0.9
PEG (5Y)2.55
EPS Next 2Y25.88%
EPS Next 3Y22.39%
5. Dividend
5.1 Amount
STX has a Yearly Dividend Yield of 1.27%.
STX's Dividend Yield is a higher than the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.34, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
STX pays out 40.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.84%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
NASDAQ:STX (10/21/2025, 10:05:07 AM)
212.625
-1.78 (-0.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.38%
Inst Owner Change-0.07%
Ins Owners0.3%
Ins Owner Change-8.99%
Market Cap45.28B
Analysts78.67
Price Target190.03 (-10.63%)
Short Float %7.96%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend2.84
Dividend Growth(5Y)2.08%
DP40.84%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.67%
Max EPS beat(2)8.05%
EPS beat(4)4
Avg EPS beat(4)6.27%
Min EPS beat(4)4.67%
Max EPS beat(4)8.05%
EPS beat(8)7
Avg EPS beat(8)44.77%
EPS beat(12)9
Avg EPS beat(12)15.48%
EPS beat(16)11
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)0.74%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-1.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.96%
PT rev (1m)9.48%
PT rev (3m)45.69%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)1.11%
EPS NY rev (3m)6.42%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 20.3 | ||
| P/S | 4.98 | ||
| P/FCF | 55.36 | ||
| P/OCF | 41.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.84 |
EPS(TTM)8.1
EY3.81%
EPS(NY)10.47
Fwd EY4.93%
FCF(TTM)3.84
FCFY1.81%
OCF(TTM)5.09
OCFY2.39%
SpS42.71
BVpS-2.13
TBVpS-7.95
PEG (NY)0.9
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.31% | ||
| ROE | N/A | ||
| ROCE | 35.87% | ||
| ROIC | 30.91% | ||
| ROICexc | 37.06% | ||
| ROICexgc | 51.22% | ||
| OM | 21.19% | ||
| PM (TTM) | 16.15% | ||
| GM | 35.32% | ||
| FCFM | 8.99% |
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%
ROICexcg growth 3Y2.29%
ROICexcg 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-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 105.58% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 5.95 | ||
| Cash Conversion | 49.7% | ||
| Profit Quality | 55.68% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.89 |
F-Score7
WACC8.3%
ROIC/WACC3.72
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)532.81%
EPS 3Y-0.25%
EPS 5Y10.31%
EPS Q2Q%146.67%
EPS Next Y29.3%
EPS Next 2Y25.88%
EPS Next 3Y22.39%
EPS Next 5Y13.89%
Revenue 1Y (TTM)38.86%
Revenue growth 3Y-7.94%
Revenue growth 5Y-2.84%
Sales Q2Q%29.52%
Revenue Next Year15.96%
Revenue Next 2Y13.39%
Revenue Next 3Y10.79%
Revenue Next 5Y9.96%
EBIT growth 1Y356.87%
EBIT growth 3Y-0.51%
EBIT growth 5Y6.89%
EBIT Next Year57.52%
EBIT Next 3Y25.4%
EBIT Next 5Y16.92%
FCF growth 1Y23.19%
FCF growth 3Y-13.77%
FCF growth 5Y-6.24%
OCF growth 1Y17.97%
OCF growth 3Y-13.22%
OCF growth 5Y-8.77%