Seagate Technology Holdings plc (STX) on Decifer

Decifer ranks STX number 36 of 277 tracked names on durable business quality.

Why it ranks here

• Its returns on invested money are modest, around 0% and it turns most of its profit into real cash.
• Revenue is expected to grow about 34% a year, profits grew 110% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Its profit margin and growth are both unusually high right now compared to its own history, the kind of combination that often fades once conditions normalize.
• One of 4 credible memory suppliers for AI clusters in a partly recognized thesis with revenue up about 34% and profits up 110%, though durability pressure and unusually hot margins temper the lean.

The current read

The evidence on STX lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.5% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Semiconductors & AI Compute: Seagate Technology - enterprise HDD

Read the full STX research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.