298.92 USD
+16.06 (+5.68%)
297.02 USD
-1.9 (-0.64%)
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. While STX belongs to the best of the industry regarding profitability, there are concerns on its financial health. STX is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
STX had positive earnings in the past year.
STX had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 20.29%, STX belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
STX has a better Return On Invested Capital (44.46%) than 97.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STX is in line with the industry average of 15.26%.
The last Return On Invested Capital (44.46%) for STX is above the 3 year average (13.27%), which is a sign of increasing profitability.
| 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
The Profit Margin of STX (17.92%) is better than 88.57% of its industry peers.
STX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.34%, STX belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
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.
STX's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, STX has more shares outstanding
Compared to 5 years ago, STX has less shares outstanding
STX has a better debt/assets ratio than last year.
2.2 Solvency
STX has a debt to FCF ratio of 4.10. This is a neutral value as STX would need 4.10 years to pay back of all of its debts.
The Debt to FCF ratio of STX (4.10) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | N/A |
ROIC/WACC5.22
WACC8.52%
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.
STX has a Current ratio of 0.98. This is in the lower half of the industry: STX underperforms 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.
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.
STX shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.56%.
The Revenue has been decreasing by -2.84% on average over the past years.
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
The Earnings Per Share is expected to grow by 27.43% on average over the next years. This is a very strong growth
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 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
STX is valuated quite expensively with a Price/Earnings ratio of 32.74.
STX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of STX to the average of the S&P500 Index (26.29), we can say STX is valued slightly more expensively.
The Price/Forward Earnings ratio is 20.13, which indicates a rather expensive current valuation of STX.
The rest of the industry has a similar Price/Forward Earnings ratio as STX.
STX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.74 | ||
| Fwd PE | 20.13 |
4.2 Price Multiples
STX's Enterprise Value to EBITDA is on the same level as 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 | 53.47 | ||
| EV/EBITDA | 26.31 |
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.
STX's earnings are expected to grow with 26.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)3.18
EPS Next 2Y35.4%
EPS Next 3Y26.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, STX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.91, STX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, STX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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 35.38% of its income as dividend. This is a sustainable payout ratio.
STX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.38%
EPS Next 2Y35.4%
EPS Next 3Y26.17%
298.92
+16.06 (+5.68%)
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-4.89%
Market Cap65.13B
Revenue(TTM)9.56B
Net Income(TTM)1.71B
Analysts79.31
Price Target296 (-0.98%)
Short Float %6.11%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)73.66%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)7.98%
EPS NY rev (1m)0.28%
EPS NY rev (3m)10.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.69%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.74 | ||
| Fwd PE | 20.13 | ||
| P/S | 6.81 | ||
| P/FCF | 53.47 | ||
| P/OCF | 42.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.31 |
EPS(TTM)9.13
EY3.05%
EPS(NY)14.85
Fwd EY4.97%
FCF(TTM)5.59
FCFY1.87%
OCF(TTM)6.98
OCFY2.33%
SpS43.87
BVpS-0.29
TBVpS-5.89
PEG (NY)0.79
PEG (5Y)3.18
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
WACC8.52%
ROIC/WACC5.22
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 32.74 and the Price/Book (PB) ratio is -1033.74.
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%.