Is the business good?
How good a business is STX?
Seagate Technology earns 80% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
80%
Return on invested capital · cost of capital 9.0% · 71 points above what the capital costs: growth creates value
- Operating margin
- 34%
Operating margin · Computer Hardware median 4.9% · 12 months to Q4 2026
- Cash conversion
- 0.97×
Cash conversion · 0.56× a year ago · some of the reported profit has not turned into cash yet
- R&D as % of revenue
- 6.2%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 14% |
| FY2022 | 17% |
| FY2023 | −4.6% |
| FY2024 | 6.9% |
| FY2025 | 21% |
| FY2026 | 34% |
Details›
- Gross margin12 months to Q4 2026
- 46%
- Operating margin12 months to Q4 2026
- 34%
- Net margin12 months to Q4 2026
- 26%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 6.2%
- Revenue, trailing twelve months
- $12.2B
- Free cash flow, trailing twelve months
- $3.10B
- Net income, trailing twelve months
- $3.18B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 80%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Computer Hardware
Ranks #2 of 11 by Smart Score