NasdaqGS:STX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

6 star dividend payer and fair value.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

STX

5.9%

US Tech

1.4%

US Market


1 Year Return

0.3%

STX

66.0%

US Tech

22.6%

US Market

Return vs Industry: STX underperformed the US Tech industry which returned 61.3% over the past year.

Return vs Market: STX underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

STXIndustryMarket
7 Day5.0%5.9%1.4%
30 Day-1.2%3.9%4.9%
90 Day24.0%19.4%14.6%
1 Year5.7%0.3%67.6%66.0%25.4%22.6%
3 Year38.2%18.4%205.2%192.0%46.8%37.0%
5 Year218.3%135.2%479.3%422.2%132.0%106.1%

Long-Term 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

Valuation

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

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STX ($62.94) is trading below our estimate of fair value ($67.5)

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 (15.9x) compared to the US Tech industry average (20.5x).

PE vs Market: STX is good value based on its PE Ratio (15.9x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: STX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: STX is overvalued based on its PB Ratio (8.9x) compared to the US Tech industry average (2.5x).


Next Steps

Future Growth

How is Seagate Technology forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STX's forecast earnings growth (6.7% per year) is above the savings rate (2%).

Earnings vs Market: STX's earnings (6.7% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: STX's earnings are forecast to grow, but not significantly.

Revenue vs Market: STX's revenue (2.6% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: STX's revenue (2.6% per year) is forecast to grow slower than 20% 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 (66.4%).


Next Steps

Past Performance

How has Seagate Technology performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STX has high quality earnings.

Growing Profit Margin: STX's current net profit margins (10%) are lower than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: STX's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: STX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STX had negative earnings growth (-41.8%) over the past year, making it difficult to compare to the Tech industry average (-13.1%).


Return on Equity

High ROE: Whilst STX's Return on Equity (56.4%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Seagate Technology's financial position?


Financial Position Analysis

Short Term Liabilities: STX's short term assets ($4.0B) exceed its short term liabilities ($2.6B).

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 (230.1%) is considered high.

Reducing Debt: STX's debt to equity ratio has increased from 215.6% to 230.1% over the past 5 years.

Debt Coverage: STX's debt is well covered by operating cash flow (37.1%).

Interest Coverage: STX's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STX's dividend (4.13%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: STX's dividend (4.13%) is in the top 25% of dividend payers in the US market (3.86%)


Stability and Growth of Payments

Stable Dividend: STX's dividends per share have been stable 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 reasonable payout ratio (65.8%), STX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STX's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Dave Mosley (53 yo)

3.25yrs

Tenure

US$11,698,767

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 ($USD11.70M) is about average for companies of similar size in the US market ($USD10.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Mosley
CEO & Director3.25yrsUS$11.70m0.19%
$ 31.0m
Gianluca Romano
Executive VP of Finance & CFO2yrsUS$3.78m0.0051%
$ 821.5k
Jeffrey Nygaard
Executive VP and Head of Operationsno dataUS$3.94m0.023%
$ 3.7m
Katherine Schuelke
Senior VP3.58yrsUS$1.44m0.0083%
$ 1.3m
Ban Teh
Senior Vice President of Global Sales & Sales Operations6.17yrsUS$1.43m0.0084%
$ 1.4m
John Morris
Senior VP & CTOno datano datano data
Ravi Naik
Chief Information Officer3.5yrsno datano data
Shanye Hudson
Vice President of Investor Relationsno datano datano data
Matt Rutledge
Senior Vice President of Corporate Development & Strategy1yrno datano data
Jeffrey Fochtman
Senior Vice President of Business & Marketing0.75yrno data0.0022%
$ 363.9k
Patricia Frost
Senior Vice President of Human Resourcesno datano datano data
Stephen Sedler
Senior Vice President and Assistant Secretaryno datano datano data

3.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: STX's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Mosley
CEO & Director3.25yrsUS$11.70m0.19%
$ 31.0m
Stephen Luczo
Director20.17yrsUS$484.52k0.23%
$ 37.6m
Edward Zander
Independent Director11.83yrsUS$449.52k0.019%
$ 3.1m
Michael Cannon
Independent Chairman of the Board0.50yrUS$479.52k0.013%
$ 2.2m
Judy Bruner
Independent Director3yrsUS$454.52k0.0062%
$ 996.2k
Mark Adams
Independent Director4yrsUS$434.52k0.0060%
$ 978.4k
Jay Geldmacher
Independent Director8.75yrsUS$419.52k0.0042%
$ 679.2k
Stephanie Tilenius
Independent Director7yrsUS$424.52k0.0091%
$ 1.5m
Pratik Bhatt
Director0.083yrno datano data
Dylan Haggart
Independent Director3yrsUS$419.52k0.0027%
$ 431.8k

3.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: STX's board of directors are considered experienced (3.8 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: 1978
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$16.171b
  • Shares outstanding: 256.93m
  • 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
STTETLX (Eurotlx)YesCommon SharesITEURDec 2002
S1TX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. The company offers hard disk and solid state drives, including s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 23:22
End of Day Share Price2021/01/21 00:00
Earnings2020/10/02
Annual Earnings2020/07/03


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.