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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

STX
GSPC
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Seagate Technology (STX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Seagate Technology (STX) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry group median
1-Year Return648.03%69.29%

Risk

Drawdown

STX
GSPC
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Seagate Technology (STX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry group median
1-Year Volatility64.30%53.66%
Beta2.051.32

Company Profile

Company profile fields for Seagate Technology (STX)
Profile ItemSTX
NameSeagate Technology Holdings plc
Country/RegionSingapore
GICS SectorInformation Technology
GICS Industry GroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
GICS Sub-IndustryTechnology Hardware, Storage & Peripherals
Market Capitalization210.65 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateDecember 11, 2002
Security TypeCommon 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
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Where Seagate Technology (STX) stands on P/E ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Seagate Technology (STX) stands on P/S ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Seagate Technology (STX) stands on P/B ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry group median
Price-to-Earnings Ratio (TTM)88.5039.13
Price-to-Sales Ratio (TTM)19.134.10
Price-to-Book Ratio (MRQ)190.794.56
Free Cash Flow Yield0.76%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
--
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Where Seagate Technology (STX) stands on ROE within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Seagate Technology (STX) stands on net margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Seagate Technology (STX) stands on operating margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry 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
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Where Seagate Technology (STX) stands on current ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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
--
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Where Seagate Technology (STX) stands on debt-to-equity ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry group median
Current Ratio (MRQ)1.331.90
Debt-to-Equity Ratio (MRQ)3.820.31
Net Debt / EBITDA0.860.91

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%
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Where Seagate Technology (STX) stands on dividend yield within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Seagate Technology (STX) stands on payout ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Seagate Technology (STX) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: STXIndustry group median
Dividend Yield (TTM)0.32%0.00%
Dividend Payout Ratio (TTM)27.70%0.00%