Seagate Technology Holdings plc
Seagate Technology Holdings plc Fundamental Analysis
Seagate Technology Holdings plc (STX) shows moderate financial fundamentals with a PE ratio of 74.40, profit margin of 21.60%, and ROE of 9.16%. The company generates $11.2B in annual revenue with strong year-over-year growth of 38.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze STX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSTX demonstrates superior asset utilization.
Valuation Score
ModerateSTX shows balanced valuation metrics.
Growth Score
ModerateSTX shows steady but slowing expansion.
Financial Health Score
ExcellentSTX maintains a strong and stable balance sheet.
Profitability Score
ModerateSTX maintains healthy but balanced margins.
Key Financial Metrics
Is STX Expensive or Cheap?
P/E Ratio
STX trades at 74.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STX's PEG of 1.34 indicates fair valuation.
Price to Book
The market values Seagate Technology Holdings plc at 161.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.44 times EBITDA. This signals the market has high growth expectations.
How Well Does STX Make Money?
Net Profit Margin
For every $100 in sales, Seagate Technology Holdings plc keeps $21.60 as profit after all expenses.
Operating Margin
Core operations generate 28.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.16 in profit for every $100 of shareholder equity.
ROA
Seagate Technology Holdings plc generates $26.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Seagate Technology Holdings plc generates strong operating cash flow of $2.92B, reflecting robust business health.
Free Cash Flow
Seagate Technology Holdings plc generates strong free cash flow of $2.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.91 in free cash annually.
FCF Yield
STX converts 1.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
161.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
9.16
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.55
vs 25 benchmark
How STX Stacks Against Its Sector Peers
| Metric | STX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.40 | 36.81 | Worse (Expensive) |
| ROE | 916.38% | 974.00% | Neutral |
| Net Margin | 21.60% | 5914823191.00% | Weak |
| Debt/Equity | 0.36 | 0.34 | Neutral |
| Current Ratio | 1.33 | 4.93 | Neutral |
| ROA | 26.74% | -294975.00% (disorted) | Strong |
STX outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Seagate Technology Holdings plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.98%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
80.82%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-21.91%
Industry Style: Growth, Innovation, High Beta
Declining