Seagate Technology
Market Cap
US$14.1b
Last Updated
2020/02/16 23:48 UTC
Data Sources
Company Financials +
Executive Summary
Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.7% per year for the next 3 years
Snowflake Analysis
Proven track record average 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.2%
STX
1.4%
US Tech
1.5%
US Market
1 Year Return
18.1%
STX
81.9%
US Tech
20.1%
US Market
Return vs Industry: STX underperformed the US Tech industry which returned 81.9% over the past year.
Return vs Market: STX underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| STX | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 1.4% | 1.5% |
| 30 Day | -11.6% | 1.5% | 1.4% |
| 90 Day | -10.2% | 19.9% | 8.7% |
| 1 Year | 24.2%18.1% | 84.6%81.9% | 22.7%20.1% |
| 3 Year | 35.0%14.5% | 132.4%116.2% | 50.1%40.5% |
| 5 Year | 15.5%-13.2% | 149.3%124.7% | 73.1%54.1% |
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
2 weeks ago | Simply Wall St
Should You Be Adding Seagate Technology (NASDAQ:STX) To Your Watchlist Today?1 month ago | Simply Wall St
Are Seagate Technology plc’s (NASDAQ:STX) High Returns Really That Great?1 month ago | Simply Wall St
Should You Rely On Seagate Technology's (NASDAQ:STX) Earnings Growth?Valuation
Is Seagate Technology undervalued compared to its fair value and its price relative to the market?
10.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STX ($53.99) is trading below our estimate of fair value ($60.27)
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 (8.6x) compared to the Tech industry average (22.1x).
PE vs Market: STX is good value based on its PE Ratio (8.6x) compared to the US market (18.4x).
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 (7.7x) compared to the US Tech industry average (1.8x).
Next Steps
Future Growth
How is Seagate Technology forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
-0.7%
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 (-0.7% per year).
Earnings vs Market: STX's earnings are forecast to decline over the next 3 years (-0.7% 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 (-0.09% per year).
High Growth Revenue: STX's revenue is forecast to decline over the next 3 years (-0.09% 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 (71.5%).
Next Steps
Past Performance
How has Seagate Technology performed over the past 5 years?
7.0%
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%) are higher than last year (14.7%).
Past Earnings Growth Analysis
Earnings Trend: STX's earnings have grown by 7% per year over the past 5 years.
Accelerating Growth: STX's earnings growth over the past year (1.9%) is below its 5-year average (7% per year).
Earnings vs Industry: STX earnings growth over the past year (1.9%) exceeded the Tech industry 0.4%.
Return on Equity
High ROE: Whilst STX's Return on Equity (92.68%) 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 ($4.2B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: STX's short term assets ($4.2B) do not cover its long term liabilities ($4.4B).
Debt to Equity History and Analysis
Debt Level: STX's debt to equity ratio (226.3%) is considered high.
Reducing Debt: STX's debt to equity ratio has increased from 106.2% to 226.3% over the past 5 years.
Debt Coverage: STX's debt is well covered by operating cash flow (44%).
Interest Coverage: STX's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Inventory Level: STX has a high level of physical assets or inventory.
Debt Coverage by Assets: STX's debt is covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Seagate Technology's current dividend yield, its reliability and sustainability?
4.81%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Seagate Technology before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: STX's dividend (4.82%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: STX's dividend (4.82%) is in the top 25% of dividend payers in the US market (3.69%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, STX has been paying a dividend for less than 10 years.
Growing Dividend: STX's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.6%), 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 (46.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Dave Mosley (52yo)
2.3yrs
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 about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 17.7yrs | US$569.20k | 0.27% $37.8m | |
| CEO & Director | 2.3yrs | US$10.34m | 0.13% $18.1m | |
| Executive VP & CFO | 1.1yrs | US$2.98m | no data | |
| Executive VP | 0yrs | US$5.09m | 0.021% $3.0m | |
| Senior VP | 2.7yrs | US$1.96m | 0.0048% $681.9k | |
| Interim Principal Accounting Officer | 1.5yrs | no data | 0.0032% $443.8k | |
| Senior VP & CTO | 0yrs | no data | no data | |
| Chief Information Officer | 2.6yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior Vice President of Human Resources | 0yrs | no data | no data |
2.3yrs
Average Tenure
53.5yo
Average Age
Experienced Management: STX's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 17.7yrs | US$569.20k | 0.27% $37.8m | |
| CEO & Director | 2.3yrs | US$10.34m | 0.13% $18.1m | |
| Independent Director | 10.9yrs | US$327.47k | 0.018% $2.5m | |
| Independent Director | 7.8yrs | US$302.44k | 0.0055% $772.1k | |
| Lead Independent Director | 3.3yrs | US$357.47k | 0.012% $1.7m | |
| Independent Director | 2.1yrs | US$332.74k | 0.0045% $638.2k | |
| Independent Director | 3.1yrs | US$312.47k | 0.0046% $646.7k | |
| Independent Director | 7.8yrs | US$307.47k | 0.0028% $388.9k | |
| Independent Director | 6.1yrs | US$307.47k | 0.0076% $1.1m | |
| Independent Director | 2.1yrs | US$297.47k | 0.0013% $177.5k |
4.7yrs
Average Tenure
61yo
Average Age
Experienced Board: STX's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Seagate Technology plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Seagate Technology plc
- Ticker: STX
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Technology Hardware, Storage and Peripherals
- Sector: Tech
- Market Cap: US$14.089b
- Shares outstanding: 260.96m
- Website: https://www.seagate.com
Number of Employees
Location
- Seagate Technology plc
- 38/39 Fitzwilliam Square
- Dublin
- Co. Dublin
- 2
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STX | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Dec 2002 |
| STT | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 2002 |
| STX | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Dec 2002 |
| 0Y2A | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Dec 2002 |
| STT | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Dec 2002 |
| S1TX34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
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 state drives (SSDs), including serial attached small computer system interface and non-volatile memory express SSDs; solid state hybrid drives; and storage subsystems. Its products are used in enterprise servers and storage systems; edge non-compute applications, such as various end user devices comprising portable external storage systems, surveillance systems, network-attached storages, digital video recorders, and gaming consoles; and edge compute applications primarily for desktop and mobile computing, as well as data centers. It also provides enterprise data solutions portfolio comprising storage subsystems for enterprises, cloud service providers, and scale-out storage servers and original equipment manufacturers (OEMs). In addition, the company offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 168TB. It sells its products primarily to OEMs, distributors, and retailers. The company was founded in 1979 and is headquartered in Dublin, Ireland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:48 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2020/01/03 |
| Annual Earnings | 2019/06/28 |
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.