Seagate Technology Holdings plc (STX) stock analysis

P/E above its 5-year median

Seagate Technology's P/E of 27.7 is above its own 5-year median of 22.7.

P/E above the industry

Seagate Technology's P/E of 27.7 is above the Computer and Office Equipment median of 25.3.

EV/EBITDA above its 5-year median

Seagate Technology's EV/EBITDA of 21.3 is above its 5-year median of 20.6.

P/B above the industry

Seagate Technology's price-to-book of 35.12 is above the Computer and Office Equipment median of 4.20.

Trading above fair value

The share price of $528.29 is above our fair value estimate of $478.70.

Margin of safety under 20%

The price is 10.4% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 18.2% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 157% over the last twelve months, against a 5-year average of 19.4% a year.

Growing faster than the industry

Revenue grew 44.4% over the last twelve months; the Computer and Office Equipment median is 11.3%.

Guidance issued

The latest outlook (fiscal second quarter 2027 Revenue, Oct 27, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 50.4% over the last twelve months, against 36.9% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 114%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Seagate Technology's return on equity of 259% is above the Computer and Office Equipment median of 7.5%.

Earnings grew over 5 years

Net income grew 19.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 31.9% over the last twelve months, against a 5-year average of 10.9%.

Net margin above the industry

Seagate Technology's net margin of 31.9% is above the Computer and Office Equipment median of 4.0%.

High debt

Debt is 68.1% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 814% five years ago to 68.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 206% of total debt.

Interest well covered

Operating income covers interest expense 22.3 times.

Short-term assets cover short-term debts

Current assets are 1.82 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 13.31; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Seagate Technology paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Seagate Technology yields 0.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 14.8% of net income.

Covered by free cash flow

Dividends take 15.6% of free cash flow.