Seagate Technology (STX) Stock Analysis
Here is a fundamental analysis of Seagate Technology (STX), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| 1-Year Return | 648.03% | 69.29% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| 1-Year Volatility | 64.30% | 53.66% |
| Beta | 2.05 | 1.32 |
Company Profile
| Profile Item | STX |
|---|---|
| Name | Seagate Technology Holdings plc |
| Country/Region | Singapore |
| GICS Sector | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment |
| GICS Industry | Technology Hardware, Storage & Peripherals |
| GICS Sub-Industry | Technology Hardware, Storage & Peripherals |
| Market Capitalization | 210.65 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | December 11, 2002 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Seagate Technology (STX) trades at P/E ratio of 88.50, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
STX
Technology Hardware & Equipment industry group
88.50
Group distribution
- Max
- 171.43
- STX
- 88.50
- Q3
- 83.19
- Median
- 39.13
- Q1
- 23.68
- Min
- 9.35
Largest peers
- STX
- 88.50
- SNDK
- 67.56
- ANET
- 56.10
- CSCO
- 40.37
- AAPL
- 35.20
- WDC
- 33.67
- DELL
- 31.54
Price-to-Sales Ratio (TTM)
Seagate Technology (STX) trades at 19.13 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
STX
Technology Hardware & Equipment industry group
19.13
Group distribution
- Max
- 19.39
- STX
- 19.13
- Q3
- 9.05
- Median
- 4.10
- Q1
- 1.42
- Min
- 0.00
Largest peers
- SNDK
- 22.24
- ANET
- 21.17
- STX
- 19.13
- WDC
- 16.48
- AAPL
- 9.47
- CSCO
- 7.86
- DELL
- 1.91
Price-to-Book Ratio (MRQ)
Seagate Technology (STX) trades at 190.79 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
STX
Technology Hardware & Equipment industry group
190.79
Group distribution
- STX
- 190.79
- Max
- 17.76
- Q3
- 9.32
- Median
- 4.56
- Q1
- 2.09
- Min
- -3.27
Largest peers
- STX
- 190.79
- AAPL
- 40.10
- WDC
- 26.91
- SNDK
- 21.27
- ANET
- 15.24
- CSCO
- 9.77
- DELL
- -182.88
Valuation at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 88.50 | 39.13 |
| Price-to-Sales Ratio (TTM) | 19.13 | 4.10 |
| Price-to-Book Ratio (MRQ) | 190.79 | 4.56 |
| Free Cash Flow Yield | 0.76% | 1.95% |
Profitability
Return on Equity (TTM)
Seagate Technology (STX) posts ROE of 1,787.97%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
STX
Technology Hardware & Equipment industry group
1,787.97%
Group distribution
- STX
- 1,787.97%
- Max
- 44.16%
- Q3
- 19.25%
- Median
- 10.96%
- Q1
- 0.71%
- Min
- -25.92%
Largest peers
- STX
- 1,787.97%
- AAPL
- 141.47%
- WDC
- 85.92%
- SNDK
- 39.30%
- ANET
- 31.52%
- CSCO
- 25.23%
- DELL
- --
Net Profit Margin (TTM)
Seagate Technology (STX) keeps 21.60% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
STX
Technology Hardware & Equipment industry group
21.60%
Group distribution
- Max
- 30.43%
- STX
- 21.60%
- Q3
- 12.35%
- Median
- 4.45%
- Q1
- 0.00%
- Min
- -14.09%
Largest peers
- WDC
- 55.29%
- ANET
- 38.32%
- SNDK
- 34.19%
- AAPL
- 27.15%
- STX
- 21.60%
- CSCO
- 19.69%
- DELL
- 6.28%
Operating Profit Margin (TTM)
Seagate Technology (STX) turns 35.67% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
STX
Technology Hardware & Equipment industry group
35.67%
Group distribution
- STX
- 35.67%
- Max
- 35.67%
- Q3
- 15.55%
- Median
- 6.62%
- Q1
- 1.55%
- Min
- -18.45%
Largest peers
- SNDK
- 69.98%
- ANET
- 42.74%
- WDC
- 37.01%
- STX
- 35.67%
- AAPL
- 32.28%
- CSCO
- 24.99%
- DELL
- 8.86%
Profitability at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 1,787.97% | 10.96% |
| Return on Assets (TTM) | 24.66% | 4.31% |
| Net Profit Margin (TTM) | 21.60% | 4.45% |
| Operating Profit Margin (TTM) | 35.67% | 6.62% |
| Gross Profit Margin (TTM) | 41.57% | 38.82% |
Financial Strength
Current Ratio (MRQ)
Seagate Technology (STX) has current ratio of 1.33, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
STX
Technology Hardware & Equipment industry group
1.33
Group distribution
- Max
- 5.80
- Q3
- 3.18
- Median
- 1.90
- STX
- 1.33
- Q1
- 1.28
- Min
- 0.40
Largest peers
- SNDK
- 4.78
- ANET
- 2.83
- WDC
- 1.49
- STX
- 1.33
- AAPL
- 1.07
- DELL
- 0.95
- CSCO
- 0.93
Debt-to-Equity Ratio (MRQ)
Seagate Technology (STX) has debt-to-equity ratio of 3.82, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.
STX
Technology Hardware & Equipment industry group
3.82
Group distribution
- STX
- 3.82
- Max
- 2.02
- Q3
- 0.88
- Median
- 0.31
- Q1
- 0.05
- Min
- 0.00
Largest peers
- STX
- 3.82
- AAPL
- 0.80
- CSCO
- 0.68
- WDC
- 0.18
- SNDK
- 0.02
- DELL
- --
- ANET
- --
Financial Strength at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.33 | 1.90 |
| Debt-to-Equity Ratio (MRQ) | 3.82 | 0.31 |
| Net Debt / EBITDA | 0.86 | 0.91 |
Dividends
Dividend Yield (TTM)
Seagate Technology (STX) has dividend yield of 0.32%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
STX
Technology Hardware & Equipment industry group
0.32%
Group distribution
- Max
- 1.30%
- Q3
- 0.54%
- STX
- 0.32%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 1.39%
- DELL
- 0.64%
- AAPL
- 0.37%
- STX
- 0.32%
- WDC
- 0.11%
- SNDK
- 0.00%
- ANET
- 0.00%
Dividend Payout Ratio (TTM)
Seagate Technology (STX) has payout ratio of 27.70%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
STX
Technology Hardware & Equipment industry group
27.70%
Group distribution
- Max
- 37.10%
- STX
- 27.70%
- Q3
- 15.46%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 55.00%
- STX
- 27.70%
- DELL
- 17.57%
- AAPL
- 12.59%
- WDC
- 2.69%
- SNDK
- 0.00%
- ANET
- 0.00%
Dividends at a Glance
| Metric | Current stock: STX | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.32% | 0.00% |
| Dividend Payout Ratio (TTM) | 27.70% | 0.00% |