Seagate Technology (NASDAQ: STX) shares currently have a dividend yield of 4.10%. Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise storage, client compute, and client non-compute market applications worldwide. The company has a P/E ratio of 5.75. The average volume for Seagate Technology has been 5,279,600 shares per day over the past 30 days. Seagate Technology has a market cap of $13.3 billion and is part of the computer hardware industry. Shares are up 21.4% year to date as of the close of trading on Thursday. TheStreet Ratings rates Seagate Technology as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- STX's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $844.00 million or 17.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.05%.
- SEAGATE TECHNOLOGY PLC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SEAGATE TECHNOLOGY PLC increased its bottom line by earning $6.45 versus $1.10 in the prior year. For the next year, the market is expecting a contraction of 20.0% in earnings ($5.16 versus $6.45).
- You can view the full Seagate Technology Ratings Report.
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