Seagate's profitability climbed in its fiscal first quarter, with management expecting further revenue and margin gains. Revenue rose 61% year over year, incremental gross margin was 88%, and earnings per share rose nearly 200%.
Demand for data center buildouts is only increasing, driven by long-term structural trends such as AI and Internet of Things. This could prolong the current upcycle and make it more durable than previous cycles.
The HDD market is commodity-like and cyclical, leaving Seagate vulnerable to market pricing declines that can shrink the top line and sink margins. In HDD downturns, these stocks can crater.
|
Metric
|
STX
|
000660
|
WDC
|
|---|---|---|---|
Price/Earnings (Normalized) | 31.29 | 6.18 | 27.89 |
Price/Book Value | 42.45 | 3.84 | 14.66 |
Price/Sales | 10.77 | 5.41 | 9.73 |
Price/Cash Flow | 29.27 | 6.78 | 24.51 |
|
Metric
|
STX
|
000660
|
WDC
|
|---|---|---|---|
Quick Ratio | 1.08 | 2.26 | 0.87 |
Current Ratio | 1.82 | 2.59 | 1.43 |
Interest Coverage | 21.52 | 269.54 | 91.30 |
|
Metric
|
STX
|
000660
|
WDC
|
|---|---|---|---|
Return on Assets (Normalized) | 51.10% | 48.07% | 34.53% |
Return on Equity (Normalized) | 333.01% | 66.92% | 61.74% |
Return on Invested Capital (Normalized) | 89.13% | 51.65% | 47.32% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Dell Technologies Inc Ordinary Shares - Class C
DELL
| LOCK|#<Q&xK$ | LOCK|kLM | $270B | |||
| Arista Networks Inc
ANET
| LOCK|%>&qx!Rp | LOCK|Gn | $213B | |||
| SanDisk Corp Ordinary Shares
SNDK
| LOCK|k&$Lsry | LOCK|?jR | $164B | |||
| Western Digital Corp
WDC
| LOCK|x&$&m> | LOCK|>D< | $137B | |||
| Everpure Inc Class A
P
| — | LOCK|H$XhL | $42B | |||
| Lenovo Group Ltd ADR
LNVGY
| LOCK|t^?txX | LOCK|j! | $32B | |||
| Lenovo Group Ltd
LNVGF
| — | LOCK|?B | $32B | |||
| HP Inc
HPQ
| LOCK|<#LlNP | LOCK|wm | $26B | |||
| Logitech International SA
LOGI
| LOCK|cpw>l% | LOCK|!k> | $13B |
United States