Seagate Technology (STX)
Information Technology · $209B market cap · SEC CIK 0001137789
fundamentals score out of 100
Next reports on Oct 26, 2026, with analysts expecting $7.44 in earnings per share.
The case for STX
- Revenue up 34.1% on the year.
- Generated $3.1B of free cash flow in FY2026, 25% of revenue.
- Earns 212% on shareholder equity.
- 26% of revenue drops through to net profit.
- Earnings per share up 104.5%.
- Pays a 3.7% dividend while you wait.
The case against
- Very expensive at 65.7× earnings. Years of growth are already in the price.
- Priced at 17.2× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 2.15).
- Priced at 85× book value. Very little hard asset backing here.
- Free cash flow is only 1.5% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 15 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 78 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 39 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 65.7× |
|---|---|
| Price / book | 84.87× |
| Price / sales | 17.2× |
| Revenue growth (YoY) | +34.1% |
| EPS growth (YoY) | +104.5% |
| Gross margin | 46% |
| Operating margin | 32% |
| Net margin | 26% |
| Return on equity | 212% |
| Debt / equity | 1.65× |
| Current ratio | 1.67 |
| Dividend yield | 3.68% |
| Beta | 2.15 |
| 52-week range | $209.00 – $1,145 |
| Position in that range | 76% of the way up |
| 3-month return | -18.0% |
| 1-year return | +296.6% |
Five years of financials, as filed
Pulled from Seagate Technology's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $12.2B | $9.1B | $6.6B | $7.4B | $11.7B |
| Operating income | $4.1B | $1.9B | $452M | -$342M | $2.0B |
| Net income | $3.2B | $1.5B | $335M | -$529M | $1.6B |
| Operating cash flow | $3.7B | $1.1B | $918M | $942M | $1.7B |
| Capital expenditure | $569M | $265M | $254M | $316M | $381M |
| Total assets | $10.0B | $8.0B | $7.7B | $7.6B | $8.9B |
| Total liabilities | $7.8B | $8.5B | $9.2B | $8.8B | $8.8B |
| Shareholder equity | $2.2B | -$453M | -$1.5B | -$1.2B | $109M |
| Cash | $1.7B | $891M | $1.4B | $786M | $615M |
| Long-term debt | $3.4B | $5.0B | $5.2B | $5.4B | $5.1B |
| Free cash flow | $3.1B | $818M | $664M | $626M | $1.3B |
| Operating margin | 33.6% | 20.8% | 6.9% | -4.6% | 16.8% |
| Net margin | 26.1% | 16.1% | 5.1% | -7.2% | 14.1% |
| Diluted shares | 229M | 217M | 212M | 207M | 224M |
Share count is essentially flat over 4 years.
What Seagate Technology says it does
— Executive Officers of the Registrant " is also incorporated by reference in this section. We have adopted a Code of Ethics that applies to the Chief Executive Officer, the Chief Financial Officer, and the principal accounting officer or controller or persons performing similar functions. This Code of Ethics is available on our website. The Internet address for our website is www.seagate.com (this website is not intended to function as a hyperlink, and the information contained in, or accessible from, our website is not intended to be a part of this filing), and the Code of Ethics may be found from our main web page by clicking first on "Investors," next on "Governance" and then on "Code of Ethics". We intend to satisfy any disclosure requirements under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of this Code of Ethics by posting such information on our website in the location specified above for the…
Risk factors STX lists in its 10-K
- Marketing and Administrative Expense
- Note 12. Legal, Environmental and Other Contingencies
- Cash Provided by Operating Activities
- Note 16. Acquisition and Divestiture
- Long-term debt and interest payments on debt
- Critical Accounting Policies and Estimates
- Note 1. Basis of Presentation and Summary of Significant Accounting Policies
- (Dollars in millions, except percentages)
- (Dollars in millions, except average contract rate)
- See Notes to Consolidated Financial Statements
- Supplemental Disclosure of Cash Flow Information
- For Fiscal Years Ended July 3, 2026, June 27, 2025 and June 28, 2024
- Accumulated Other Comprehensive (Loss) Income
- Basis of Presentation and Summary of Significant Accounting Policies