STXSTX
US • —
$851.69
P/E
80.76
PEG
1.50
FCF Yield
1.3%
Rev Growth YoY
+28.9% YoY
Gross Margin
41.6%
Health Score
5/10
D/E Ratio
51.80
Confidence
MEDIUM
Business Snapshot
Seagate Technology Holdings (STX) is a leading provider of data storage solutions, primarily generating revenue from the design, manufacture, and sale of hard disk drives (HDDs) and solid-state drives (SSDs). The company operates in the highly competitive data storage market, facing pressure from cloud-based storage and flash memory alternatives, but maintains a dominant position as one of only three major HDD manufacturers globally. With a market capitalisation of $190.97B, Seagate is a large-cap company that generated strong revenue growth, though TTM revenue itself is not provided in this data set. A defining characteristic of Seagate is its capital-intensive business model, requiring continuous investment in R&D to maintain its technological edge in areal density advancements.
Financial Health
Gross margin stands at 41.6%, with no prior-year comparison available for trend analysis, while net margin is a healthy 21.6%, indicating efficient cost control and pricing power. The balance sheet shows significant leverage, with a Debt/Equity ratio of 51.8x, which is extremely high and characteristic of a capital-intensive industry, and a current ratio of 1.38x, suggesting adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E ratio of 80.76x is significantly elevated compared to the sector average of 22x, implying exceptionally high growth expectations.
- DEBT / LIQUIDITY — Debt/Equity of 51.8x is extremely high, indicating a highly leveraged balance sheet that increases financial risk.
- INSIDER SELLING — Insiders have a net sell position with 10 sells versus 0 buys over the last 90 days, which can be a bearish signal on management's view of the stock's value.
- VALUATION DIVERGENCE — The current price of $851.69 is vastly above the Python DCF estimate of $186.80, suggesting extreme overvaluation if the model's assumptions are realistic.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 41.6%, with no prior-year comparison available for trend analysis, while net margin is a healthy 21.6%, indicating efficient cost control and pricing power. The balance sheet shows significant leverage, with a Debt/Equity ratio of 51.8x, which is extremely high and characteristic of a capital-intensive industry, and a current ratio of 1.38x, suggesting adequate short-term liquidity. Free cash flow (FCF) is positive at $2.41B, providing a 1.3% FCF yield, which demonstrates the business generates cash after capital expenditures. Overall financial health shows a mixed picture: robust cash generation supports reinvestment and potential dividend capacity, but the extreme leverage on the balance sheet presents a structural risk that could limit financial flexibility in a downturn.
- VALUATION — P/E ratio of 80.76x is significantly elevated compared to the sector average of 22x, implying exceptionally high growth expectations. - DEBT / LIQUIDITY — Debt/Equity of 51.8x is extremely high, indicating a highly leveraged balance sheet that increases financial risk. - INSIDER SELLING — Insiders have a net sell position with 10 sells versus 0 buys over the last 90 days, which can be a bearish signal on management's view of the stock's value. - VALUATION DIVERGENCE — The current price of $851.69 is vastly above the Python DCF estimate of $186.80, suggesting extreme overvaluation if the model's assumptions are realistic. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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