WBAG:STX

Stock Analysis Report

Seagate Technology

Executive Summary

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Seagate Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

STX

3.1%

AT Tech

-0.6%

AT Market


1 Year Return

40.7%

STX

11.0%

AT Tech

2.0%

AT Market

Return vs Industry: STX exceeded the Austrian Tech industry which returned 11% over the past year.

Return vs Market: STX exceeded the Austrian Market which returned 2% over the past year.


Shareholder returns

STXIndustryMarket
7 Day-0.3%3.1%-0.6%
30 Day7.1%5.4%3.0%
90 Day28.4%9.3%6.7%
1 Year48.8%40.7%12.6%11.0%5.7%2.0%
3 Yearn/a33.1%26.9%46.0%32.8%
5 Yearn/a84.3%60.2%65.2%42.0%

Price Volatility Vs. Market

How volatile is Seagate Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Seagate Technology undervalued compared to its fair value and its price relative to the market?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STX (€52.9) is trading below our estimate of fair value (€54.13)

Significantly Below Fair Value: STX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: STX is good value based on its PE Ratio (9.3x) compared to the Tech industry average (26.4x).

PE vs Market: STX is good value based on its PE Ratio (9.3x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: STX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: STX is overvalued based on its PB Ratio (8.8x) compared to the XE Tech industry average (1.3x).


Next Steps

  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is Seagate Technology forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

-5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STX's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: STX's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: STX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STX's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: STX's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STX's Return on Equity is forecast to be very high in 3 years time (73.5%).


Next Steps

Past Performance

How has Seagate Technology performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STX has high quality earnings.

Growing Profit Margin: STX's current net profit margins (17.7%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: STX's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: STX's earnings growth over the past year (20.2%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: STX earnings growth over the past year (20.2%) exceeded the Tech industry -14.9%.


Return on Equity

High ROE: Whilst STX's Return on Equity (99.55%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seagate Technology's financial position?


Financial Position Analysis

Short Term Liabilities: STX's short term assets ($4.0B) exceeds its short term liabilities ($2.5B)

Long Term Liabilities: STX's short term assets (4.0B) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: STX's debt to equity ratio (233.9%) is considered high

Reducing Debt: STX's debt to equity ratio has increased from 128.6% to 233.9% over the past 5 years.

Debt Coverage: STX's debt is well covered by operating cash flow (39.4%).

Interest Coverage: STX's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: STX has a high level of physical assets or inventory.

Debt Coverage by Assets: STX's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Seagate Technology's current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Seagate Technology before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.7%markettop25%4.3%industryaverage1.6%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: STX's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: STX's dividend (4.27%) is in the top 25% of dividend payers in the Austrian market (4.26%)


Stability and Growth of Payments

Stable Dividend: STX's dividend payments have been volatile in the past 10 years.

Growing Dividend: STX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), STX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STX's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

What is the CEO of Seagate Technology's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Dave Mosley (52yo)

2.1yrs

Tenure

US$10,344,579

Compensation

Dr. William David Mosley, also known as Dave, has been Chief Executive Officer of Seagate Technology Plc since October 1, 2017. Dr. Mosley served as President and Chief Operating Officer of Seagate Technol ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD10.34M) is above average for companies of similar size in the Austrian market ($USD3.58M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: STX's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

61yo

Average Age

Experienced Board: STX's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: STX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$290,96412 Nov 19
Jay Geldmacher
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,500
Max PriceUS$52.90
SellUS$5,208,19306 Nov 19
Stephen Luczo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares100,000
Max PriceUS$52.08
SellUS$4,404,99108 May 19
Stephen Luczo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares99,999
Max PriceUS$44.05
SellUS$2,028,41622 Feb 19
Stephen Luczo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares50,000
Max PriceUS$40.57
SellUS$2,025,39120 Feb 19
Stephen Luczo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares50,000
Max PriceUS$40.51
SellUS$439,47020 Feb 19
James Murphy
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales & Marketing
Shares10,832
Max PriceUS$40.57
BuyUS$88,220,53008 Feb 19
ValueAct Capital Management L.P.
EntityCompany
Shares2,225,000
Max PriceUS$40.34
BuyUS$14,252,74910 Dec 18
ValueAct Capital Management L.P.
EntityCompany
Shares400,000
Max PriceUS$35.95
SellUS$1,166,71206 Dec 18
Stephen Luczo
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceUS$38.89
SellUS$513,13304 Dec 18
James Murphy
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales & Marketing
Shares13,660
Max PriceUS$37.56
BuyUS$4,599,27530 Nov 18
ValueAct Capital Management L.P.
EntityCompany
Shares124,127
Max PriceUS$37.09
BuyUS$13,696,41123 Nov 18
ValueAct Capital Management L.P.
EntityCompany
Shares371,086
Max PriceUS$37.04

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Steve Luczo (62yo)

    Executive Chairman

    • Tenure: 17.4yrs
    • Compensation: US$569.20k
  • Kate Schuelke (56yo)

    Senior VP

    • Tenure: 2.4yrs
    • Compensation: US$1.96m
  • Géraldine Hottier-Fayon (45yo)

    Interim Principal Accounting Officer

    • Tenure: 1.3yrs
  • Dave Mosley (52yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$10.34m
  • Jim Murphy (60yo)

    Executive Vice President of Worldwide Sales & Marketing

    • Tenure: 2.8yrs
    • Compensation: US$4.88m
  • Shanye Hudson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Ravi Naik

    Chief Information Officer

    • Tenure: 2.3yrs
  • Jeffrey Nygaard (55yo)

    Executive VP of Operations

    • Tenure: 0yrs
    • Compensation: US$5.09m
  • Gianluca Romano (50yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$2.98m
  • John Morris

    Senior VP & CTO

    • Tenure: 0yrs

Board Members

  • Steve Luczo (62yo)

    Executive Chairman

    • Tenure: 17.4yrs
    • Compensation: US$569.20k
  • Ed Zander (72yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$327.47k
  • Bill Coleman (71yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$302.44k
  • Mike Cannon (66yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$357.47k
  • Judy Bruner (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$332.74k
  • Mark Adams (55yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$312.47k
  • Dave Mosley (52yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$10.34m
  • Jay Geldmacher (63yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$307.47k
  • Stephanie Tilenius (52yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$307.47k
  • Dylan Haggart (32yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$297.47k

Company Information

Seagate Technology plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seagate Technology plc
  • Ticker: STX
  • Exchange: WBAG
  • Founded: 1979
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$15.521b
  • Listing Market Cap: US$14.050b
  • Shares outstanding: 262.71m
  • Website: https://www.seagate.com

Number of Employees


Location

  • Seagate Technology plc
  • 38/39 Fitzwilliam Square
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 2002
STTDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2002
STXWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 2002
0Y2ALSE (London Stock Exchange)YesCommon SharesGBUSDDec 2002

Biography

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. The company manufactures and distributes hard disk drives; solid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 22:06
End of Day Share Price2019/11/15 00:00
Earnings2019/10/04
Annual Earnings2019/06/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.