STXSeagate Technology
Is the business good?
A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (1.0×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 2.9% · 12 months to Q4 2026
- Cash conversion
- 1.04×
Cash conversion · 0.59× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from STX and who it buys from, as the companies report it.
- One customer14%
Share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; STX’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Computer Hardware
The closest names by size in the same industry