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Seagate Technology

Nasdaq:STX
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STX
Nasdaq
$12B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. The last earnings update was 46 days ago. More info.


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STX Share Price and Events
7 Day Returns
1.6%
NasdaqGS:STX
1.2%
US Tech
0.5%
US Market
1 Year Returns
-24.3%
NasdaqGS:STX
-0.8%
US Tech
0.8%
US Market
STX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Seagate Technology (STX) 1.6% -3.1% -7.2% -24.3% 90.6% -21.3%
US Tech 1.2% 0.2% 2.3% -0.8% 87.2% 87%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • STX underperformed the Tech industry which returned -0.8% over the past year.
  • STX underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
STX
Industry
5yr Volatility vs Market

STX Value

 Is Seagate Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Seagate Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Seagate Technology.

NasdaqGS:STX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.1%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.086 (1 + (1- 12.5%) (36.91%))
1.293
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.293 * 7.14%)
11.96%

Discounted Cash Flow Calculation for NasdaqGS:STX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Seagate Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:STX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.96%)
2019 1,264.60 Analyst x7 1,129.52
2020 1,218.56 Analyst x7 972.13
2021 1,246.00 Analyst x1 887.84
2022 1,237.20 Est @ -0.71% 787.40
2023 1,241.21 Est @ 0.32% 705.57
2024 1,254.19 Est @ 1.05% 636.80
2025 1,273.65 Est @ 1.55% 577.60
2026 1,297.91 Est @ 1.9% 525.73
2027 1,325.85 Est @ 2.15% 479.68
2028 1,356.68 Est @ 2.33% 438.40
Present value of next 10 years cash flows $7,140.66
NasdaqGS:STX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,356.68 × (1 + 2.73%) ÷ (11.96% – 2.73%)
$15,100.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,100.84 ÷ (1 + 11.96%)10
$4,879.72
NasdaqGS:STX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,140.66 + $4,879.72
$12,020.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,020.38 / 276.84
$43.42
NasdaqGS:STX Discount to Share Price
Calculation Result
Value per share (USD) From above. $43.42
Current discount Discount to share price of $44.26
= -1 x ($44.26 - $43.42) / $43.42
-1.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Seagate Technology is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Seagate Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Seagate Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $5.23
NasdaqGS:STX Share Price ** NasdaqGS (2019-06-14) in USD $44.26
United States of America Tech Industry PE Ratio Median Figure of 14 Publicly-Listed Tech Companies 17.57x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Seagate Technology.

NasdaqGS:STX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STX Share Price ÷ EPS (both in USD)

= 44.26 ÷ 5.23

8.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Seagate Technology is good value based on earnings compared to the US Tech industry average.
  • Seagate Technology is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Seagate Technology's expected growth come at a high price?
Raw Data
NasdaqGS:STX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
-3.7%per year
United States of America Tech Industry PEG Ratio Median Figure of 8 Publicly-Listed Tech Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:STX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.47x ÷ -3.7%

-2.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Seagate Technology earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Seagate Technology's assets?
Raw Data
NasdaqGS:STX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $6.10
NasdaqGS:STX Share Price * NasdaqGS (2019-06-14) in USD $44.26
United States of America Tech Industry PB Ratio Median Figure of 34 Publicly-Listed Tech Companies 1.66x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:STX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STX Share Price ÷ Book Value per Share (both in USD)

= 44.26 ÷ 6.10

7.25x

* Primary Listing of Seagate Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Seagate Technology is overvalued based on assets compared to the US Tech industry average.
X
Value checks
We assess Seagate Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. Seagate Technology has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STX Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Seagate Technology expected to grow at an attractive rate?
  • Seagate Technology's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Seagate Technology's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Seagate Technology's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts -3.7%
NasdaqGS:STX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts -3.1%
United States of America Tech Industry Earnings Growth Rate Market Cap Weighted Average 5%
United States of America Tech Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 9,677 1,943 1,150 9
2020-06-30 10,151 1,777 1,274 24
2019-06-30 10,359 1,847 1,240 25
NasdaqGS:STX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-29 10,854 1,781 1,490
2018-12-28 11,344 1,901 1,676
2018-09-28 11,543 2,463 1,451
2018-06-29 11,184 2,113 1,182
2018-03-30 10,755 1,888 835
2017-12-29 10,626 1,756 648
2017-09-29 10,606 1,562 786
2017-06-30 10,771 1,916 772
2017-03-31 11,019 1,942 728
2016-12-30 10,940 1,721 514
2016-09-30 11,032 1,447 381
2016-07-01 11,160 1,680 248
2016-04-01 11,434 1,639 315

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Seagate Technology's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Seagate Technology's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Seagate Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 4.17 4.99 3.63 3.00
2020-06-30 4.52 4.90 3.71 10.00
2019-06-30 4.34 4.48 4.24 10.00
NasdaqGS:STX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-29 5.23
2018-12-28 5.85
2018-09-28 5.05
2018-06-29 4.10
2018-03-30 2.89
2017-12-29 2.22
2017-09-29 2.68
2017-06-30 2.61
2017-03-31 2.45
2016-12-30 1.73
2016-09-30 1.28
2016-07-01 0.83
2016-04-01 1.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Seagate Technology is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Seagate Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Seagate Technology has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STX Past Performance

  How has Seagate Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Seagate Technology's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Seagate Technology's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Seagate Technology's 1-year earnings growth exceeds its 5-year average (78.9% vs -9.1%)
  • Seagate Technology's earnings growth has not exceeded the US Tech industry average in the past year (78.9% vs 80.9%).
Earnings and Revenue History
Seagate Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Seagate Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 10,854.00 1,490.00 483.00 1,005.00
2018-12-28 11,344.00 1,676.00 508.00 1,021.00
2018-09-28 11,543.00 1,451.00 530.00 1,025.00
2018-06-29 11,184.00 1,182.00 560.00 1,022.00
2018-03-30 10,755.00 835.00 569.00 1,020.00
2017-12-29 10,626.00 648.00 583.00 1,090.00
2017-09-29 10,606.00 786.00 594.00 1,145.00
2017-06-30 10,771.00 772.00 604.00 1,197.00
2017-03-31 11,019.00 728.00 601.00 1,251.00
2016-12-30 10,940.00 514.00 602.00 1,225.00
2016-09-30 11,032.00 381.00 608.00 1,224.00
2016-07-01 11,160.00 248.00 635.00 1,237.00
2016-04-01 11,434.00 315.00 694.00 1,254.00
2016-01-01 12,169.00 626.00 764.00 1,302.00
2015-10-02 12,879.00 1,395.00 823.00 1,339.00
2015-07-03 13,739.00 1,742.00 856.00 1,353.00
2015-04-03 14,112.00 1,925.00 828.00 1,352.00
2015-01-02 14,188.00 2,029.00 798.00 1,303.00
2014-10-03 14,020.00 1,524.00 770.00 1,274.00
2014-06-27 13,724.00 1,570.00 736.00 1,226.00
2014-03-28 13,847.00 1,598.00 739.00 1,197.00
2013-12-27 13,968.00 1,619.00 696.00 1,194.00
2013-09-27 14,108.00 1,683.00 666.00 1,159.00
2013-06-28 14,351.00 1,838.00 639.00 1,133.00
2013-03-29 15,409.00 2,503.00 579.00 1,108.00
2012-12-28 16,332.00 3,233.00 575.00 1,084.00
2012-09-28 15,860.00 3,304.00 555.00 1,066.00
2012-06-29 14,939.00 2,862.00 506.00 1,006.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Seagate Technology made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Seagate Technology used its assets more efficiently than the US Tech industry average last year based on Return on Assets.
  • Seagate Technology has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Seagate Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Seagate Technology has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STX Health

 How is Seagate Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Seagate Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Seagate Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Seagate Technology's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Seagate Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Seagate Technology Company Filings, last reported 2 months ago.

NasdaqGS:STX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 1,689.00 4,522.00 1,388.00
2018-12-28 1,934.00 4,324.00 1,357.00
2018-09-28 1,846.00 4,821.00 1,942.00
2018-06-29 1,665.00 4,819.00 1,853.00
2018-03-30 1,364.00 4,822.00 2,926.00
2017-12-29 1,061.00 4,876.00 2,556.00
2017-09-29 1,242.00 5,002.00 2,285.00
2017-06-30 1,364.00 5,021.00 2,539.00
2017-03-31 1,608.00 5,231.00 3,026.00
2016-12-30 1,523.00 4,093.00 1,716.00
2016-09-30 1,524.00 4,092.00 1,494.00
2016-07-01 1,593.00 4,091.00 1,131.00
2016-04-01 1,683.00 4,130.00 1,199.00
2016-01-01 1,821.00 4,140.00 1,264.00
2015-10-02 1,922.00 4,140.00 1,921.00
2015-07-03 3,018.00 4,155.00 2,485.00
2015-04-03 3,191.00 3,931.00 2,610.00
2015-01-02 3,715.00 3,932.00 3,302.00
2014-10-03 2,946.00 3,809.00 2,201.00
2014-06-27 2,832.00 3,920.00 2,654.00
2014-03-28 2,638.00 3,514.00 2,306.00
2013-12-27 2,495.00 3,572.00 2,339.00
2013-09-27 3,689.00 2,773.00 2,413.00
2013-06-28 3,506.00 2,777.00 2,188.00
2013-03-29 3,312.00 2,478.00 1,909.00
2012-12-28 2,925.00 2,818.00 1,872.00
2012-09-28 3,535.00 2,870.00 2,370.00
2012-06-29 3,497.00 2,863.00 2,118.00
  • Seagate Technology's level of debt (267.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (133.3% vs 267.7% today).
  • Debt is well covered by operating cash flow (39.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).
X
Financial health checks
We assess Seagate Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Seagate Technology has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.69%
Current annual income from Seagate Technology dividends. Estimated to be 5.75% next year.
If you bought $2,000 of Seagate Technology shares you are expected to receive $114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Seagate Technology's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Seagate Technology's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United States of America Tech Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 2.61 5.00
2020-06-30 2.54 10.00
2019-06-30 2.52 10.00
NasdaqGS:STX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-30 2.520 5.574
2019-02-04 2.520 5.341
2018-11-02 2.520 6.160
2018-09-07 2.520 5.572
2018-08-03 2.520 4.732
2018-07-30 2.520 4.720
2018-05-01 2.520 4.403
2018-01-29 2.520 4.508
2017-07-25 2.520 6.834
2017-04-26 2.520 6.121
2016-10-19 2.520 6.077
2016-09-09 2.520 6.882
2016-08-05 2.520 7.643
2016-08-02 2.520 8.082
2016-04-29 2.520 10.707
2015-10-21 2.520 7.684
2015-08-12 2.160 4.633
2015-07-31 2.160 4.228
2015-04-30 2.160 4.143
2015-04-17 2.160 3.698
2014-10-22 2.160 3.567
2014-07-18 1.720 2.966
2014-04-29 1.720 3.155
2014-01-27 1.720 3.274
2013-10-29 1.720 3.278
2013-10-28 1.720 3.508
2013-05-01 1.520 3.548
2012-11-29 1.520 4.604
2012-10-31 1.280 4.649
2012-07-30 1.280 4.155
2012-04-17 1.000 3.783
2012-01-26 1.000 3.786
2011-10-20 0.720 4.279
2011-07-20 0.720 6.214
2011-04-07 0.720 4.384
2011-02-03 0.000 0.000
2011-01-19 0.000 0.000
2010-11-03 0.000 0.000
2010-10-20 0.000 0.000
2010-08-20 0.000 0.000
2010-07-20 0.000 0.000
2010-05-05 0.000 0.000
2010-04-20 0.000 0.000
2010-02-01 0.000 0.000
2010-01-20 0.000 0.000
2009-11-04 0.000 0.000
2009-10-20 0.000 0.000
2009-08-19 0.000 0.000
2009-07-21 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Seagate Technology has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Seagate Technology only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Seagate Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Seagate Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Seagate Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Seagate Technology has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STX Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Mosley
COMPENSATION $9,332,073
AGE 51
TENURE AS CEO 1.7 years
CEO Bio

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 Technology Plc from June 27, 2016 to September 2017. Dr. Mosley served as the President of Operations and Technology at Seagate Technology Public Limited Company since October 2013 until June 2016 and served as its President of Global Markets and Customers since January 4, 2016. Dr. Mosley served as an Executive Vice President of Operations at Seagate Technology Public Limited Company since March 8, 2011 until October 2013. Dr. Mosley joined Seagate in 1996 as a Senior Engineer and responsible for its global drive, Heads and media manufacturing operations. From 1996 to 2002, he served in varying roles of increasing responsibility until his promotion to Vice President. He served as an Executive Vice President of Sales and Marketing at Seagate Technology Public Limited Company from September 2009 to March 8, 2011. He served as an Executive Vice President of Sales, Marketing & Product Line Management at Seagate Technology Public Limited Company from February 9, 2009 to September 2009. Dr. Mosley served as Senior Vice President of Global Disk Storage Operations at Seagate Technology Public Limited Company from 2007 to 2009. Prior to that, he served in several positions as Vice President, Research and Development, Engineering from 2002 to 2007; Senior Director, Research and Development, Engineering from 2000 to 2002; Director, Research & Development, Engineering from 1998 to 2000; and Manager, Operations & Manufacturing from 1996 to 1998. He served as Vice President and site management team leader for Seagate's Longmont, Colorado, operation; and he has led Seagate's emerging products development team. Prior to joining Seagate, Dr. Mosley was a Research Physicist at Lawrence Livermore National Laboratory and a Senior Engineer at Micropolis and Conner Peripherals. He has been Director of Seagate Technology plc since July 25, 2017. He earned a Ph.D. in Physics from the University of California, Davis focusing on solid state physics.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Seagate Technology management team in years:

1.7
Average Tenure
54.5
Average Age
  • The average tenure for the Seagate Technology management team is less than 2 years, this suggests a new team.
Management Team

Steve Luczo

TITLE
Executive Chairman
COMPENSATION
$8M
AGE
61
TENURE
1.7 yrs

Dave Mosley

TITLE
President
COMPENSATION
$9M
AGE
51
TENURE
1.7 yrs

Jim Murphy

TITLE
Executive Vice President of Worldwide Sales & Marketing
COMPENSATION
$4M
AGE
59
TENURE
2.4 yrs

Jeffrey Nygaard

TITLE
Executive Vice President of Global Operations
COMPENSATION
$4M
AGE
54
TENURE
1.7 yrs

Gianluca Romano

TITLE
Executive VP & CFO
TENURE
0.4 yrs

Géraldine Hottier-Fayon

TITLE
Interim Principal Accounting Officer
AGE
44
TENURE
0.8 yrs

Ravi Naik

TITLE
Chief Information Officer
TENURE
1.9 yrs

Jingjing Chen

TITLE
Director of Investor Relations

Shanye Hudson

TITLE
Vice President of Investor Relations

Kate Schuelke

TITLE
Senior VP
AGE
55
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Seagate Technology board of directors in years:

6.3
Average Tenure
61.5
Average Age
  • The tenure for the Seagate Technology board of directors is about average.
Board of Directors

Dave Mosley

TITLE
President
COMPENSATION
$9M
AGE
51
TENURE
1.9 yrs

Ed Zander

TITLE
Independent Director
COMPENSATION
$395K
AGE
71
TENURE
10.3 yrs

Steve Luczo

TITLE
Executive Chairman
COMPENSATION
$8M
AGE
61
TENURE
17 yrs

Mike Cannon

TITLE
Lead Independent Director
COMPENSATION
$428K
AGE
65
TENURE
2.7 yrs

Jay Geldmacher

TITLE
Independent Director
COMPENSATION
$382K
AGE
62
TENURE
7.2 yrs

Judy Bruner

TITLE
Director
COMPENSATION
$330K
AGE
59
TENURE
1.4 yrs

Chong Park

TITLE
Independent Director
COMPENSATION
$403K
AGE
70
TENURE
13.1 yrs

Bill Coleman

TITLE
Independent Director
COMPENSATION
$371K
AGE
70
TENURE
7.2 yrs

Stephanie Tilenius

TITLE
Independent Director
COMPENSATION
$381K
AGE
51
TENURE
5.4 yrs

Mark Adams

TITLE
Director
COMPENSATION
$380K
AGE
54
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • Seagate Technology insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. May 19 Sell Stephen Luczo Individual 06. May 19 06. May 19 -99,999 $49.33 $-4,932,801
22. Feb 19 Sell Stephen Luczo Individual 20. Feb 19 20. Feb 19 -50,000 $46.09 $-2,304,495
20. Feb 19 Sell James Murphy Individual 14. Feb 19 14. Feb 19 -10,832 $45.75 $-495,512
20. Feb 19 Sell Stephen Luczo Individual 14. Feb 19 14. Feb 19 -50,000 $45.67 $-2,283,675
08. Feb 19 Buy ValueAct Capital Management L.P. Company 06. Feb 19 08. Feb 19 2,225,000 $45.68 $99,910,000
10. Dec 18 Buy ValueAct Capital Management L.P. Company 06. Dec 18 07. Dec 18 400,000 $40.97 $16,244,301
06. Dec 18 Sell Stephen Luczo Individual 03. Dec 18 03. Dec 18 -30,000 $44.16 $-1,324,755
04. Dec 18 Sell James Murphy Individual 30. Nov 18 30. Nov 18 -13,660 $42.53 $-580,993
30. Nov 18 Buy ValueAct Capital Management L.P. Company 28. Nov 18 30. Nov 18 124,127 $41.99 $5,207,512
23. Nov 18 Buy ValueAct Capital Management L.P. Company 20. Nov 18 23. Nov 18 371,086 $41.99 $15,527,050
31. Aug 18 Sell James Murphy Individual 29. Aug 18 29. Aug 18 -410 $56.60 $-23,206
23. Aug 18 Sell Stephen Luczo Individual 21. Aug 18 21. Aug 18 -35,000 $55.40 $-1,939,116
21. Aug 18 Buy ValueAct Capital Management L.P. Company 17. Aug 18 17. Aug 18 23,200 $52.95 $1,228,440
16. Aug 18 Buy ValueAct Capital Management L.P. Company 14. Aug 18 16. Aug 18 931,882 $53.00 $49,224,746
14. Aug 18 Buy ValueAct Capital Management L.P. Company 14. Aug 18 14. Aug 18 250,000 $52.78 $13,195,000
13. Aug 18 Buy ValueAct Capital Management L.P. Company 09. Aug 18 13. Aug 18 2,090,783 $51.36 $106,505,242
02. Aug 18 Buy ValueAct Capital Management L.P. Company 31. Jul 18 02. Aug 18 946,000 $52.94 $49,927,490
X
Management checks
We assess Seagate Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Seagate Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STX News

Simply Wall St News

Three Things You Should Check Before Buying Seagate Technology plc (NASDAQ:STX) For Its Dividend

Is Seagate Technology plc (NASDAQ:STX) a good dividend stock? … NasdaqGS:STX Historical Dividend Yield, June 15th 2019 Payout ratios Dividends are usually paid out of company earnings. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. While there may be fluctuations in the past , Seagate Technology's earnings per share have basically not grown from where they were five years ago. Over the long term, steady earnings per share is a risk as the value of the dividends can be reduced by inflation. A payout ratio below 50% leaves ample room to reinvest in the business, and provides finanical flexibility. However, earnings per share are unfortunately not growing much. Might this suggest that the company should pay a higher dividend instead? Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is Now An Opportune Moment To Examine Seagate Technology plc (NASDAQ:STX)?

Seagate Technology plc (NASDAQ:STX) saw significant share price movement during recent months on the NASDAQGS, rising to highs of $50.64 and falling to the lows of $41.85. … Let’s take a look at Seagate Technology’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … It’s trading around 13% below my intrinsic value, which means if you buy Seagate Technology today, you’d be paying a fair price for it.

Simply Wall St -

Seagate Technology plc (NASDAQ:STX): A Fundamentally Attractive Investment

Proven track record average dividend payer STX delivered a bottom-line expansion of 79% in the prior year, with its most recent earnings level surpassing its average level over the last five years. … NasdaqGS:STX Historical Dividend Yield, May 20th 2019 Next Steps: For Seagate Technology, I've put together three key aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for STX’s future growth? … Take a look at our free research report of analyst consensus for STX’s outlook.

Simply Wall St -

Here's Why We Think Seagate Technology (NASDAQ:STX) Is Well Worth Watching

In contrast to all that, I prefer to spend time on companies like Seagate Technology (NASDAQ:STX), which has not only revenues, but also profits. … Over the last three years, Seagate Technology has grown earnings per share (EPS) like bamboo after rain; fast, and from a low base. … Like a firecracker arcing through the night sky, Seagate Technology's EPS shot from US$2.88 to US$5.23, over the last year.

Simply Wall St -

Have Insiders Been Selling Seagate Technology plc (NASDAQ:STX) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Seagate Technology plc (NASDAQ:STX). … Seagate Technology Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Stephen Luczo, for US$5.9m worth of shares, at about US$59.05 per share.

Simply Wall St -

Seagate Technology plc (NASDAQ:STX) Should Be In Your Dividend Portfolio, Here's Why

Seagate Technology plc (NASDAQ:STX) is a true Dividend Rock Star. … In the past ten years, Seagate Technology has also grown its dividend from $0.12 to $2.52. … Below, I have outlined more attractive dividend aspects for Seagate Technology for income investors who may be interested in new dividend stocks for their portfolio.

Simply Wall St -

Seagate Technology plc (NASDAQ:STX) Earns Among The Best Returns In Its Industry

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Can You Imagine How Seagate Technology's (NASDAQ:STX) Shareholders Feel About The 28% Share Price Increase?

That's what has happened with the Seagate Technology plc (NASDAQ:STX) share price. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Seagate Technology was able to grow its EPS at 43% per year over three years, sending the share price higher.

Simply Wall St -

Do You Like Seagate Technology plc (NASDAQ:STX) At This P/E Ratio?

We'll show how you can use Seagate Technology plc's (NASDAQ:STX) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate Seagate Technology's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

A Holistic Look At Seagate Technology plc (NASDAQ:STX)

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Seagate Technology plc (NASDAQ:STX) due to its excellent fundamentals in more than one area.

Simply Wall St -

STX Company Info

Description

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It 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. The company’s products are used in enterprise servers and storage systems; edge compute/client compute applications, primarily for desktop and mobile computing; and edge non-compute/client non-compute applications, such as various end user devices comprising portable external storage systems, surveillance systems, digital video recorders, network-attached storages, and gaming consoles, as well as data centers. It also provides cloud systems and solutions portfolio that includes modular original equipment manufacturer (OEM) storage systems and scale-out storage servers. 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 120TB. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.

Details
Name: Seagate Technology plc
STX
Exchange: NasdaqGS
Founded: 1979
$12,253,062,549
276,842,805
Website: http://www.seagate.com
Address: Seagate Technology plc
38/39 Fitzwilliam Square,
Dublin,
Co. Dublin, 2,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STX Common Shares Nasdaq Global Select US USD 11. Dec 2002
DB STT Common Shares Deutsche Boerse AG DE EUR 11. Dec 2002
LSE 0Y2A Common Shares London Stock Exchange GB USD 11. Dec 2002
WBAG STX Common Shares Wiener Boerse AG AT EUR 11. Dec 2002
Number of employees
Current staff
Staff numbers
43,000
Seagate Technology employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 23:55
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/29
Last annual earnings reported: 2018/06/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.