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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
396.1%
Sector: -1.4%
Dividend Analysis audit
GROWTH
1.01%
Trailing Yield
$1.01
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
62%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Seagate Technology Holdings plc (STX) receives a "Hold" rating with a composite score of 48.8/100, ranked #751 out of 4446 stocks. Key factor scores: Quality 50/100, Value 41/100, Momentum 77/100. This is quantitative analysis only — not investment advice.
Seagate Technology Holdings plc (STX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Seagate Technology Holdings plc Do?
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. The company offers hard disk and solid state drives, including serial advanced technology attachment, serial attached SCSI, and non-volatile memory express products; solid state hybrid drives; and storage subsystems. It also provides enterprise data solutions portfolio comprising storage subsystems and mass capacity optimized private cloud storage solutions for enterprises, cloud service providers, and scale-out storage servers and original equipment manufacturers (OEMs). In addition, the company offers external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 16TB. It sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland. Seagate Technology Holdings plc (STX) is classified as a large-cap stock in the Technology sector, specifically within the Computer Hardware industry. The company is led by CEO William D. Mosley and employs approximately 40,000 people. With a market capitalization of $94.8B, STX is one of the prominent companies in the Technology sector.
As of April 2026, Seagate Technology Holdings plc receives a Hold rating with a composite score of 48.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.STX ranks #751 out of 4,446 stocks in our coverage universe. Within the Technology sector, Seagate Technology Holdings plc ranks #68 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
STX Stock Price and 52-Week Range
Seagate Technology Holdings plc (STX) currently trades at $503.70. The stock gained $2.93 (0.6%) in the most recent trading session. The 52-week high for STX is $459.84, which means the stock is currently trading 9.5% from its annual peak. The 52-week low is $63.19, putting the stock 697.1% above its annual trough. Recent trading volume was 3.4M shares, reflecting moderate market activity.
Is STX Overvalued or Undervalued? — Valuation Analysis
Seagate Technology Holdings plc (STX) carries a value factor score of 41/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 61.16x, compared to the Technology sector average of 45.27x — a premium of 35%. The price-to-book ratio stands at 242.23x, versus the sector average of 3.16x. The price-to-sales ratio is 11.19x, compared to 1.06x for the average Technology stock. On an enterprise value basis, STX trades at 45.27x EV/EBITDA, versus 12.79x for the sector.
Overall, STX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Seagate Technology Holdings plc (STX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 396.1%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 20.9% versus the sector average of -1.0%.
On a margin basis, Seagate Technology Holdings plc reports gross margins of 37.8%, compared to 50.9% for the sector. The operating margin is 24.3% (sector: -0.5%). Net profit margin stands at 18.0%, versus -1.5% for the average Technology stock. Revenue growth is running at 30.3% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
STX Debt, Balance Sheet, and Financial Health
Seagate Technology Holdings plc has a debt-to-equity ratio of 1797.0%, compared to the Technology sector average of 43.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Cash and equivalents stand at $1.05B.
STX has a beta of 1.75, meaning it is more volatile than the broader market — a $10,000 investment in STX would be expected to move 74.7% more than the S&P 500 on any given day. The stability factor score for Seagate Technology Holdings plc is 38/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Seagate Technology Holdings plc Revenue and Earnings History — Quarterly Trend
In TTM 2026, Seagate Technology Holdings plc reported revenue of $9.94B and earnings per share (EPS) of $2.75. Net income for the quarter was $1.82B. Gross margin was 37.8%. Operating income came in at $2.46B.
In Q2 2026, Seagate Technology Holdings plc reported revenue of $2.83B and earnings per share (EPS) of $2.75. Net income for the quarter was $593M. Gross margin was 41.6%. Revenue grew 21.5% year-over-year compared to Q2 2025. Operating income came in at $843M.
In Q1 2026, Seagate Technology Holdings plc reported revenue of $2.63B and earnings per share (EPS) of $2.58. Net income for the quarter was $549M. Gross margin was 39.4%. Revenue grew 21.3% year-over-year compared to Q1 2025. Operating income came in at $694M.
In FY 2025, Seagate Technology Holdings plc reported revenue of $9.10B and earnings per share (EPS) of $6.93. Net income for the quarter was $1.47B. Gross margin was 35.2%. Revenue grew 38.9% year-over-year compared to FY 2024. Operating income came in at $1.89B.
Over the past 8 quarters, Seagate Technology Holdings plc has demonstrated a growth trajectory, with revenue expanding from $6.55B to $9.94B. Investors analyzing STX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
STX Dividend Yield and Income Analysis
Seagate Technology Holdings plc (STX) currently pays a dividend yield of 1.0%. At this yield, a $10,000 investment in STX stock would generate approximately $$101.00 in annual dividend income. With a net margin of 18.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
STX Momentum and Technical Analysis Profile
Seagate Technology Holdings plc (STX) has a momentum factor score of 77/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
STX vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Seagate Technology Holdings plc (STX) ranks #68 out of 584 stocks based on the Blank Capital composite score. This places STX in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing STX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full STX vs S&P 500 (SPY) comparison to assess how Seagate Technology Holdings plc stacks up against the broader market across all factor dimensions.
STX Next Earnings Date
No upcoming earnings date has been announced for Seagate Technology Holdings plc (STX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy STX? — Investment Thesis Summary
Seagate Technology Holdings plc presents a balanced picture with arguments on both sides. Price momentum is positive at 77/100, suggesting the trend favors buyers. High volatility (stability score 38/100) increases portfolio risk.
In summary, Seagate Technology Holdings plc (STX) earns a Hold rating with a composite score of 48.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on STX stock.
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Institutional Research Dossier
Seagate Technology Holdings plc (STX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Seagate Technology Holdings plc (STX) receives a Hold rating, justified by a mixed financial profile. While the company exhibits strong profitability metrics and revenue growth, its valuation appears stretched relative to its peers, and its high debt-to-equity ratio raises concerns about financial risk. The current market conditions and the inherent cyclicality of the storage industry further support a neutral stance.
The primary takeaway is that while Seagate has demonstrated an impressive turnaround in profitability and revenue growth, the current valuation doesn't offer a compelling entry point. Investors should closely monitor the company's debt management, competitive landscape, and ability to sustain its recent growth trajectory before considering a more aggressive position.
Business Strategy & Overview
Seagate Technology Holdings plc operates within the data storage industry, providing hard disk drives (HDDs) and solid-state drives (SSDs) to a diverse customer base, including original equipment manufacturers (OEMs), distributors, and retailers. The company's strategic focus is on mass capacity storage solutions, catering to the increasing demand for data storage driven by cloud computing, artificial intelligence, and the Internet of Things. Seagate offers a range of products, including enterprise data solutions, external storage solutions under brands like Seagate Ultra Touch and LaCie, and specialized drives for various applications.
Seagate's business model revolves around manufacturing and selling these storage devices. The company invests heavily in research and development to maintain a competitive edge in terms of storage density, performance, and cost-effectiveness. A key aspect of their strategy involves optimizing their product portfolio to meet the evolving needs of different market segments, from consumer-grade storage to high-performance enterprise solutions. They also focus on building strong relationships with key customers, particularly OEMs and cloud service providers, to secure long-term contracts and market share.
The company's strategic positioning is centered on being a leading provider of mass capacity storage, particularly HDDs, which remain a crucial component for large-scale data centers and cloud infrastructure. While SSDs are gaining traction, HDDs still offer a cost advantage for high-capacity storage needs. Seagate's product pipeline includes advancements in HDD technology, such as heat-assisted magnetic recording (HAMR), which aims to increase storage density and improve performance. They are also expanding their SSD offerings to cater to the growing demand for faster storage solutions.
The industry context is characterized by intense competition from companies like Western Digital and Samsung, as well as the ongoing shift towards cloud-based storage solutions. Seagate's ability to adapt to these changes and maintain its market share will be critical to its long-term success. The company's focus on mass capacity storage and its investments in innovative technologies like HAMR are aimed at addressing these challenges and capitalizing on the growing demand for data storage.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
30.3%
Sector: 14.2%
+113% VS SCTR
Economic Moat Analysis
Seagate's economic moat can be classified as Narrow. While the company possesses certain advantages, they are not strong enough to create a Wide moat. The primary source of its moat stems from intangible assets, specifically its intellectual property and technological expertise in HDD manufacturing. Developing and manufacturing high-capacity HDDs requires significant R&D investment and specialized knowledge, creating a barrier to entry for new competitors. However, this advantage is not insurmountable, as evidenced by the presence of established competitors like Western Digital.
The company also benefits from some degree of cost advantages due to its scale of operations and manufacturing efficiencies. Producing HDDs at scale allows Seagate to achieve lower per-unit costs, giving it a competitive edge in pricing. However, these cost advantages are not substantial enough to create a dominant position, as other large players in the industry also benefit from similar economies of scale.
Switching costs for customers are relatively low, particularly for consumer-grade storage. While enterprise customers may face some switching costs due to integration and compatibility issues, these are not prohibitive. The availability of alternative storage solutions from competitors limits Seagate's ability to lock in customers and maintain pricing power.
The threat of disruption from SSDs also weakens Seagate's moat. While HDDs remain cost-effective for mass storage, SSDs offer superior performance and are increasingly becoming more affordable. As SSD prices continue to decline, they are likely to erode the demand for HDDs, potentially diminishing Seagate's competitive advantage in the long run. Therefore, while Seagate possesses some advantages in terms of technology and scale, its moat is not wide enough to provide a sustainable competitive advantage over the long term. The company needs to continue innovating and adapting to the changing market dynamics to maintain its position in the data storage industry.
Financial Health & Profitability
Seagate's financial health presents a mixed picture. The company has demonstrated a significant improvement in profitability in recent periods. The TTM Net Income of $593.00M and Operating Margin of 24.3% are substantial improvements compared to the losses and negative margins reported in FY2023 and FY2024. The ROE of 396.1% is exceptionally high, but this is likely inflated due to the company's capital structure and should be interpreted with caution.
Revenue growth has also been strong, with a TTM Revenue of $2.83B representing a 30.3% increase compared to the sector average of 14.0%. This growth is reflected in the quarterly financial history, with consistent revenue increases in recent quarters. However, it's important to note that the company's revenue and profitability have been volatile in the past, reflecting the cyclical nature of the storage industry.
The company's balance sheet raises some concerns. While the Current Ratio of 1.12 indicates adequate short-term liquidity, the Debt-to-Equity ratio of 1,797.00 is extremely high compared to the sector average of 43.00. This high leverage increases the company's financial risk and could limit its ability to invest in future growth opportunities. The availability of Free Cash Flow data would provide a more complete picture of the company's financial health, but it is currently unavailable.
Compared to the sector, Seagate's profitability metrics are significantly better. The company's Net Margin of 18.0% is far superior to the sector average of -1.5%. However, its Gross Margin of 37.8% is lower than the sector average of 51.2%, suggesting that the company may be facing some cost pressures. Overall, Seagate's financial health is improving, but its high debt levels and the cyclical nature of its business warrant careful monitoring.
Valuation Assessment
Seagate's valuation appears stretched based on several key metrics. The company's P/E ratio of 149.5x is significantly higher than the sector average of 45.3x, suggesting that the stock is trading at a premium to its earnings. Similarly, the EV/EBITDA ratio of 27.3x is more than double the sector average of 13.0x, indicating that the company is expensive relative to its operating cash flow.
While the company has demonstrated strong revenue growth and improved profitability, the current valuation may already reflect these positive developments. The high P/E ratio suggests that investors are expecting continued strong growth in the future, which may not be sustainable given the cyclical nature of the storage industry and the intense competition from other players.
The lack of Free Cash Flow data makes it difficult to assess the company's valuation based on cash flow metrics. However, the high P/E and EV/EBITDA ratios suggest that the stock is not undervalued. A more detailed valuation analysis, including discounted cash flow (DCF) modeling, would be necessary to determine a fair value for the stock.
Given the company's high debt levels and the potential for future earnings volatility, a conservative valuation approach is warranted. While Seagate has made significant progress in improving its financial performance, the current valuation appears to be pricing in a high degree of optimism. Investors should carefully consider the risks and uncertainties associated with the company before investing at these levels.
Risk & Uncertainty
Seagate faces several key risks and uncertainties that could impact its future performance. One of the most significant risks is the cyclical nature of the data storage industry. Demand for storage devices can fluctuate significantly based on economic conditions, technology trends, and customer spending patterns. A downturn in the global economy or a slowdown in cloud infrastructure spending could negatively impact Seagate's revenue and profitability.
Competition from other storage providers, particularly Western Digital and Samsung, also poses a significant risk. These companies are investing heavily in both HDD and SSD technologies, and they could potentially gain market share at Seagate's expense. The ongoing shift towards SSDs also presents a challenge, as SSDs offer superior performance and are increasingly becoming more affordable. If Seagate fails to adapt to this trend and maintain its competitiveness in the SSD market, its long-term growth prospects could be limited.
The company's high debt levels also create financial risk. A high debt-to-equity ratio increases the company's vulnerability to economic downturns and could limit its ability to invest in future growth opportunities. If Seagate is unable to generate sufficient cash flow to service its debt, it may face financial distress.
Technological obsolescence is another risk factor. The data storage industry is constantly evolving, and new technologies are emerging that could disrupt the market. If Seagate fails to innovate and keep pace with these technological changes, its products could become obsolete, and its market share could decline.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSeagate's focus on mass capacity storage positions it perfectly to capitalize on the exponential growth of data driven by AI and cloud computing.
BULL VIEWThe company's recent financial turnaround, marked by strong revenue growth and improved profitability, signals a sustainable recovery and justifies a higher valuation.
The Bear Case
BEAR VIEWSeagate's high debt-to-equity ratio exposes it to significant financial risk, especially if the cyclical storage market experiences a downturn.
BEAR VIEWThe shift towards SSDs threatens Seagate's core HDD business, and the company's ability to successfully compete in the SSD market remains uncertain.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score STX and 4,400+ other equities.
Seagate Technology Holdings plc exhibits a 2203% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
20.9%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
37.8%
Sector: 50.9%
Operating Margin
Core business profitability
24.3%
Sector: -0.5%
Net Margin
Bottom-line profitability
18.0%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $101 annually in dividends at the current trailing rate.
