Seagate Tech (STX) AI Stock Analysis

• Market Cap: $23.14B
• Dividend Yield: 2.65%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.83
• Revenue Growth: 36.29%
• EPS Growth: N/A
• Country: US
• Employees: 30,000
• Sector: Technology
• Sector Strength: 76
• Industry: Computer Hardware
• EPS (TTM): 1.90
• Shares Outstanding: 212,217,470
• 10 Day Avg. Volume: 3,703,810
• 30 Day Avg. Volume: 4,563,283
• PEG Ratio: 0.51
• Price to Book (P/B): -24.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.27
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 3.02
• 1Y Price Target: $113.14
• Price Target Upside: 8.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: ―

Seagate Tech's overall score reflects a robust financial outlook with strong cash flow and improving profitability, tempered by balance sheet challenges. The positive earnings call and strategic corporate events bolster future growth prospects, but technical indicators suggest caution due to potential market volatility.

Positive Factors

Financial Performance

Seagate reported a significant year-over-year revenue growth of 30.5%.

Market Demand

Sustained robust demand is expected, driven by public cloud, enterprise OEM, and private cloud/edge demand improvement.

Technology and Innovation

Seagate's comments on the incremental margin profile of HAMR volume ramps to be a key focus, indicating potential for significant growth.

Negative Factors

Market Sentiment

There are still many skeptics of hard disk drives, as evidenced by the high short-interest.

Shareholder Returns

Seagate Technology is close to target debt levels but is unlikely to announce buybacks at the Analyst Day, indicating limited immediate shareholder returns through buybacks.

Seagate Tech Business Overview & Revenue Model

Company Description

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.

How the Company Makes Money

Seagate Technology generates revenue through the sale of its data storage products, primarily hard disk drives (HDDs) and solid-state drives (SSDs). The company's revenue streams are driven by sales to original equipment manufacturers (OEMs), distributors, and retailers, which supply Seagate's products to end consumers, businesses, and data centers around the world. Seagate also invests in research and development to enhance its product offerings, ensuring they meet the evolving needs of the market. Key partnerships with technology companies and data center operators further bolster Seagate's earnings by facilitating the integration and adoption of its storage solutions in large-scale and cloud environments.

Seagate Tech Financial Statement Overview

Summary

Seagate Tech shows strong cash flow and improving profitability metrics. However, balance sheet concerns, particularly negative equity and high financial leverage, pose risks that could impact long-term financial stability.

Income Statement

Seagate Tech's income statement shows improving profitability metrics in the TTM with a gross profit margin of 31.8% and a net profit margin of 14.7%, indicating strong operational efficiency. However, the revenue growth is volatile, having decreased significantly in the past year but showing recovery in the TTM. EBIT and EBITDA margins have improved from negative figures in 2023 to positive, reflecting a turnaround in operational performance.

Balance Sheet

The balance sheet reveals financial leverage concerns with a negative stockholders' equity, leading to an undefined debt-to-equity ratio for the TTM. This indicates potential financial risk despite improved asset management. The equity ratio is negative due to liabilities exceeding assets, highlighting a need for financial restructuring to ensure long-term stability.

Cash Flow

Cash flow analysis for Seagate Tech shows strong operating cash flow relative to net income, and free cash flow has grown by 24.1% in the TTM, demonstrating effective cash management. The company generates sufficient cash flows to cover capital expenditures, indicating a healthy ability to reinvest in the business.

Breakdown
TTM	Jun 2024	Jun 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
8.54B	6.55B	7.38B	11.66B	10.68B	10.51B
	Gross Profit
2.89B	1.55B	1.35B	3.47B	2.92B	2.84B
	EBIT
1.63B	452.00M	-342.00M	1.96B	1.49B	1.30B
	EBITDA
2.11B	1.03B	301.00M	2.41B	1.90B	1.76B
	Net Income Common Stockholders
1.49B	335.00M	-529.00M	1.65B	1.31B	1.00B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
814.00M	1.36B	786.00M	615.00M	1.21B	1.72B
	Total Assets
7.56B	7.74B	7.56B	8.94B	8.68B	8.93B
	Total Debt
0.00	6.07B	5.45B	5.65B	5.14B	4.17B
	Net Debt
-814.00M	4.71B	4.67B	5.03B	3.93B	2.45B
	Total Liabilities
8.39B	9.23B	8.76B	8.84B	8.04B	7.14B
	Stockholders Equity
-829.00M	-1.49B	-1.20B	109.00M	631.00M	1.79B
Cash Flow		Free Cash Flow
955.00M	664.00M	626.00M	1.28B	1.13B	1.13B
	Operating Cash Flow
1.01B	918.00M	942.00M	1.66B	1.63B	1.71B
	Investing Cash Flow
137.00M	126.00M	217.00M	-352.00M	-466.00M	-635.00M
	Financing Cash Flow
-1.13B	-473.00M	-988.00M	-1.90B	-1.67B	-1.60B

Seagate Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STX, the sentiment is Positive. The current price of 104.43 is above the 20-day moving average (MA) of 96.34, above the 50-day MA of 86.57, and above the 200-day MA of 95.27, indicating a bullish trend. The MACD of 6.73 indicates Negative momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 80.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STX.

Seagate Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	78 Outperform	$26.73B	23.61	21.03%	―	82.10%	6.35%
NTAP	73 Outperform	$20.86B	18.70	114.33%	2.06%	5.46%	23.49%
PSTG	72 Outperform	$18.41B	184.83	8.29%	―	11.92%	74.08%
HPQ	71 Outperform	$27.43B	10.46	84.33%	3.90%	1.03%	-18.56%
STX	66 Neutral	$23.14B	15.76	-109.27%	2.65%	36.29%	―
WDC	66 Neutral	$17.66B	9.41	28.45%	―	21.22%	―
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%

Seagate Tech Corporate Events

Seagate Tech Announces $400M Senior Notes Offering

On May 12, 2025, Seagate Technology Holdings plc announced that its subsidiary, Seagate Data Storage Technology Pte. Ltd., entered into a purchase agreement to issue and sell $400 million of 5.875% Senior Notes due 2030. The offering, expected to close on May 27, 2025, aims to finance the redemption of Seagate HDD Cayman’s outstanding 4.875% Senior Notes due 2027. This move is part of Seagate’s strategy to manage its debt obligations effectively, potentially impacting its financial stability and market positioning.

The most recent analyst rating on (STX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

Seagate Tech Announces $400M Senior Notes Offering

On May 12, 2025, Seagate Technology Holdings plc announced a private offering of $400 million in senior notes due 2030 through its subsidiary, Seagate Data Storage Technology Pte. Ltd. The proceeds, along with cash on hand, will be used to redeem all outstanding 4.875% Senior Notes due 2027, which is conditional upon receiving sufficient net proceeds from financing transactions. This move is part of Seagate’s strategic financial management to optimize its debt structure.

The most recent analyst rating on (STX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Seagate Tech stock, see the STX Stock Forecast page.

Seagate Tech Director Judy Bruner to Step Down

On May 2, 2025, Judy Bruner informed Seagate Technology’s Board of Directors that she will not seek re-election at the 2025 Annual General Meeting. Her decision is not due to any disagreements with the company, and she will remain a director until the meeting concludes. The Board expressed gratitude for her contributions.

Seagate Tech Reports Strong Q3 2025 Financial Results

On April 29, 2025, Seagate Technology announced its fiscal third quarter 2025 financial results, reporting a revenue of $2.16 billion and a non-GAAP diluted EPS of $1.90. The company declared a quarterly cash dividend of $0.72 per share, payable on July 8, 2025. Seagate’s performance reflects profitable growth and margin expansion, attributed to structural enhancements in its business model and a healthy supply/demand environment for mass capacity storage. The company remains focused on executing its HAMR product ramp to meet cloud customer demand, despite navigating a dynamic macroeconomic environment.