Recent News
On September 22, 2025 Seagate announced a strategic alliance with Acronis to deliver secure, S3‑compatible archival storage for managed service providers and enterprises. Recent analyst coverage and market reports highlight a strong earnings print and revenue beat tied to AI-driven demand for high‑capacity storage, with several firms raising targets and the stock trading at multi‑month strength. Market commentary in October noted periodic intraday weakness amid broader market moves but emphasized continued demand from hyperscale and cloud customers.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX registers at 28.12, indicating a strong trend environment; DI+ sits at 33.81 on a dip‑and‑reversal, producing a bullish directional read while DI- declines to 18.99, which reinforces the positive directional differential and supports a near‑term upward bias tied to the current valuation thesis.
MACD: MACD measures 16.43 with the signal line at 12.45 and shows a dip‑and‑reversal. The MACD sits above its signal line, constituting a bullish momentum confirmation that aligns with the earnings surprise and the valuation labeled under‑valued by WMDST.
MRO (Momentum/Regression Oscillator): MRO reads 36.18, a positive value that indicates price sits above the model target and therefore carries potential for mean reversion. That pressure for a pullback would temper rapid extensions even while momentum indicators remain constructive.
RSI: RSI at 65.07 with a dip‑and‑reversal reflects elevated momentum without an overbought extreme; RSI supports continued appreciation but warns that further rapid gains would push the oscillator toward overbought levels.
Price vs. averages and bands: Last close at $288.00 trades well above the 200‑day average ($143.06), the 50‑day average ($228.68), and the 20‑day average ($259.66); the 12‑day EMA at $267.09 trends higher. The close sits modestly above the 1× Bollinger upper band ($285.99) but below the 2× band ($312.32), signaling persistent upside paired with vulnerability to short‑term reversion. SuperTrend lower support appears near $254.11, offering a mechanical reference point for trend integrity.
Volatility and volume context: 42‑day volatility reads 5% with a 42‑day beta of 1.57, implying above‑market swings. Recent volume (3,868,800) trails the 10‑day average (5,961,021), suggesting current moves carry less immediate conviction from short‑term traders despite broad institutional interest reflected in recent headlines.
Fundamental Analysis
Earnings and cash flow: Reported EPS of $2.61 exceeded the $2.40 estimate, producing an EPS surprise of 8.75%; operating cash flow reached $520,000,000 with free cash flow of $427,000,000 and a free cash flow yield of 1.00% (WMDST). Cash conversion ratio sits at -30.93%, while cash on hand totals $1,112,000,000, supporting capital return and working capital flexibility.
Profitability margins: Gross margin measures 39.45%, while operating margin arrives at 26.89% and EBIT margin at 26.40%. EBIT margin falls below the industry peer mean of 30.40% and the industry peer median of 31.65%, indicating slightly compressed operating efficiency versus peers even as margins expand year‑over‑year.
Top‑line and growth metrics: Total revenue stands at $2,629,000,000 with reported revenue growth noted at 7.57% on one measure but a year‑over‑year revenue change of -49.16% on another reported metric; use caution when reconciling period definitions. QoQ dynamics show pressure (revenue growth QoQ -42.43%), while YoY margin expansion (operating margin YoY +45.39%) reflects improved unit economics amid fluctuating volumes.
Capital structure and returns: Total debt totals $4,994,000,000 with net debt of $3,882,000,000 and debt/EBITDA at 6.52. Return on assets reads 6.67% and return on invested capital 12.58%, while return on equity registers negative at -8.71% driven by negative total equity ($-63,000,000) and retained losses. Book value per share stands negative at $-0.29, producing a negative price‑to‑book of -675.42, a function of shareholder deficit rather than operating cash generation.
Valuation summary: Price metrics show a trailing P/E of 76.18 and forward P/E of 71.93 while enterprise value/EBITDA and enterprise multiple appear elevated; nevertheless, WMDST values the stock as under‑valued based on the firm’s nearline capacity, margin expansion, and cash generation profile relative to expected demand for mass‑capacity storage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-28 |
| NEXT REPORT DATE: | 2026-01-27 |
| CASH FLOW | Begin Period Cash Flow | $ 893.0 M |
| Operating Cash Flow | $ 520.0 M | |
| Capital Expenditures | $ -105.00 M | |
| Change In Working Capital | $ -116.00 M | |
| Dividends Paid | $ -153.00 M | |
| Cash Flow Delta | $ 221.0 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.6 B | |
| Forward Revenue | $ 621.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | — | |
| Depreciation and Amortization | $ 72.0 M | |
| Research and Development | $ 186.0 M | |
| Total Operating Expenses | $ 1.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.0 B | |
| EBITDA | $ 766.0 M | |
| EBIT | $ 694.0 M | |
| Operating Income | $ 707.0 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | $ 80.0 M | |
| Net Interest Income | $ -73.00 M | |
| Income Before Tax | $ 614.0 M | |
| Tax Provision | $ 65.0 M | |
| Tax Rate | 10.586 % | |
| Net Income | $ 549.0 M | |
| Net Income From Continuing Operations | $ 549.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.40 | |
| EPS Actual | $ 2.61 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 8.75 % | |
| Forward EPS | $ 2.42 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 8.4 B | |
| Intangible Assets | $ 1.2 B | |
| Net Tangible Assets | $ -1.28 B | |
| Total Current Assets | $ 4.0 B | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 1.1 B | |
| Inventory | $ 1.5 B | |
| Long-Term Investments | $ 410.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.7 B | |
| Short-Term Debt | $ 1.5 B | |
| Total Current Liabilities | $ 4.1 B | |
| Net Debt | $ 3.9 B | |
| Total Debt | $ 5.0 B | |
| Total Liabilities | $ 8.5 B | |
| EQUITY | ||
| Total Equity | $ -63.00 M | |
| Retained Earnings | $ -7.83 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -0.29 | |
| Shares Outstanding | 214.000 M | |
| Revenue Per-Share | $ 12.29 | |
| VALUATION | Market Capitalization | $ 42.6 B |
| Enterprise Value | $ 46.4 B | |
| Enterprise Multiple | 60.618 | |
| Enterprise Multiple QoQ | 8.725 % | |
| Enterprise Multiple YoY | 34.303 % | |
| Enterprise Multiple IPRWA | high: 195.637 median: 102.461 mean: 100.776 STX: 60.618 low: 24.213 |
|
| EV/R | 17.662 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -134.0 | |
| Asset To Liability | 0.993 | |
| Debt To Capital | 1.013 | |
| Debt To Assets | 0.592 | |
| Debt To Assets QoQ | -4.982 % | |
| Debt To Assets YoY | 884.473 % | |
| Debt To Assets IPRWA | STX: 0.592 high: 0.334 median: 0.275 mean: 0.273 low: 0.021 |
|
| Debt To Equity | -79.27 | |
| Debt To Equity QoQ | 618.904 % | |
| Debt To Equity YoY | 21413.825 % | |
| Debt To Equity IPRWA | high: 1.338 median: 1.338 mean: 0.971 low: -11.959 STX: -79.27 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -675.422 | |
| Price To Book QoQ | 889.893 % | |
| Price To Book YoY | 3937.402 % | |
| Price To Book IPRWA | high: 48.811 median: 48.811 mean: 45.673 low: -30.575 STX: -675.422 |
|
| Price To Earnings (P/E) | 76.183 | |
| Price To Earnings QoQ | 53.414 % | |
| Price To Earnings YoY | 17.035 % | |
| Price To Earnings IPRWA | high: 141.114 median: 131.683 mean: 128.823 STX: 76.183 low: 34.664 |
|
| PE/G Ratio | 98.683 | |
| Price To Sales (P/S) | 16.185 | |
| Price To Sales QoQ | 27.979 % | |
| Price To Sales YoY | 61.348 % | |
| Price To Sales IPRWA | high: 35.123 median: 35.123 mean: 33.67 STX: 16.185 low: 0.746 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 71.928 | |
| Forward PE/G | 93.171 | |
| Forward P/S | 68.49 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.959 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.319 | |
| Asset Turnover Ratio QoQ | 1.834 % | |
| Asset Turnover Ratio YoY | 15.711 % | |
| Asset Turnover Ratio IPRWA | high: 0.503 STX: 0.319 mean: 0.299 median: 0.297 low: 0.134 |
|
| Receivables Turnover | 2.588 | |
| Receivables Turnover Ratio QoQ | -16.305 % | |
| Receivables Turnover Ratio YoY | -36.921 % | |
| Receivables Turnover Ratio IPRWA | high: 3.044 median: 3.044 mean: 3.004 STX: 2.588 low: 1.487 |
|
| Inventory Turnover | 1.084 | |
| Inventory Turnover Ratio QoQ | 3.202 % | |
| Inventory Turnover Ratio YoY | -2.219 % | |
| Inventory Turnover Ratio IPRWA | high: 9.297 median: 9.297 mean: 8.967 STX: 1.084 low: 0.588 |
|
| Days Sales Outstanding (DSO) | 35.264 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 25.096 | |
| Cash Conversion Cycle Days QoQ | 3.136 % | |
| Cash Conversion Cycle Days YoY | -325.068 % | |
| Cash Conversion Cycle Days IPRWA | high: 122.838 STX: 25.096 mean: -65.274 low: -68.481 median: -68.481 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -30.929 | |
| CapEx To Revenue | -0.04 | |
| CapEx To Depreciation | 0.0 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.4 B | |
| Net Invested Capital | $ 4.9 B | |
| Invested Capital | $ 4.9 B | |
| Net Tangible Assets | $ -1.28 B | |
| Net Working Capital | $ -85.00 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.27 | |
| Current Ratio | 0.979 | |
| Current Ratio QoQ | -29.008 % | |
| Current Ratio YoY | -14.198 % | |
| Current Ratio IPRWA | high: 2.358 STX: 0.979 mean: 0.901 median: 0.893 low: 0.738 |
|
| Quick Ratio | 0.616 | |
| Quick Ratio QoQ | -26.294 % | |
| Quick Ratio YoY | -12.489 % | |
| Quick Ratio IPRWA | high: 2.953 mean: 0.876 median: 0.859 STX: 0.616 low: 0.438 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.52 | |
| Cost Of Debt | 1.432 % | |
| Interest Coverage Ratio | 8.675 | |
| Interest Coverage Ratio QoQ | 14.749 % | |
| Interest Coverage Ratio YoY | 83.884 % | |
| Interest Coverage Ratio IPRWA | high: 19573.3 mean: 1613.944 STX: 8.675 median: 4.609 low: 1.889 |
|
| Operating Cash Flow Ratio | 0.126 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 97.721 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.588 | |
| Dividend Payout Ratio | 0.279 | |
| Dividend Rate | $ 0.71 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.222 % | |
| Revenue Growth | 7.57 % | |
| Revenue Growth QoQ | -42.425 % | |
| Revenue Growth YoY | -49.164 % | |
| Revenue Growth IPRWA | high: 10.6 % median: 8.965 % mean: 8.734 % STX: 7.57 % low: -12.839 % |
|
| Earnings Growth | 0.772 % | |
| Earnings Growth QoQ | -97.874 % | |
| Earnings Growth YoY | -98.471 % | |
| Earnings Growth IPRWA | high: 49.677 % mean: 18.336 % median: 17.834 % STX: 0.772 % low: -14.634 % |
|
| MARGINS | ||
| Gross Margin | 39.445 % | |
| Gross Margin QoQ | 5.474 % | |
| Gross Margin YoY | 19.77 % | |
| Gross Margin IPRWA | high: 70.19 % median: 47.178 % mean: 46.033 % STX: 39.445 % low: 7.219 % |
|
| EBIT Margin | 26.398 % | |
| EBIT Margin QoQ | 13.784 % | |
| EBIT Margin YoY | 42.723 % | |
| EBIT Margin IPRWA | high: 31.647 % median: 31.647 % mean: 30.398 % STX: 26.398 % low: 0.625 % |
|
| Return On Sales (ROS) | 26.892 % | |
| Return On Sales QoQ | 13.12 % | |
| Return On Sales YoY | 45.394 % | |
| Return On Sales IPRWA | high: 31.647 % median: 31.647 % mean: 30.36 % STX: 26.892 % low: 0.566 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 427.0 M | |
| Free Cash Flow Yield | 1.003 % | |
| Free Cash Flow Yield QoQ | -27.055 % | |
| Free Cash Flow Yield YoY | 708.871 % | |
| Free Cash Flow Yield IPRWA | high: 2.779 % STX: 1.003 % mean: 0.776 % low: 0.736 % median: 0.736 % |
|
| Free Cash Growth | 0.471 % | |
| Free Cash Growth QoQ | -99.513 % | |
| Free Cash Growth YoY | -100.507 % | |
| Free Cash Growth IPRWA | high: 155.935 % median: 8.527 % mean: 6.159 % STX: 0.471 % low: -525.0 % |
|
| Free Cash To Net Income | 0.778 | |
| Cash Flow Margin | 19.779 % | |
| Cash Flow To Earnings | 0.947 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 6.669 % | |
| Return On Assets QoQ | 6.5 % | |
| Return On Assets YoY | 71.749 % | |
| Return On Assets IPRWA | high: 7.953 % median: 7.953 % mean: 7.639 % STX: 6.669 % low: 0.649 % |
|
| Return On Capital Employed (ROCE) | 16.046 % | |
| Return On Equity (ROE) | -8.714 | |
| Return On Equity QoQ | 708.931 % | |
| Return On Equity YoY | 3614.214 % | |
| Return On Equity IPRWA | high: 0.373 median: 0.373 mean: 0.348 low: -0.421 STX: -8.714 |
|
| DuPont ROE | -212.783 % | |
| Return On Invested Capital (ROIC) | 12.584 % | |
| Return On Invested Capital QoQ | 1.631 % | |
| Return On Invested Capital YoY | -124.71 % | |
| Return On Invested Capital IPRWA | high: 15.749 % median: 15.749 % mean: 15.214 % STX: 12.584 % low: 0.66 % |
|