Despite Stagnant Revenue Growth, How Has Seagate Technology Stock Outperformed The S&P Since 2018?

Seagate Technology (NASDAQ: STX) stock selling price rose extra than 2x from $39 in 2018 stop to more than $80 at present, principally thanks to favorable modifications in its P/S many. During this period, the organization witnessed just an 8% rise in revenue, but a significant fall in the excellent share depend assisted raise the company’s income per share and stock price tag. Even further, in excess of the identical time period, the S&P 500 returned around 65%, this means that Seagate inventory managed to strongly outperform the broader markets.

In our interactive dashboard, Why Seagate Engineering Inventory Moved: STX Stock Has Gained 109% Due to the fact 2018, we crack down the factors guiding this transfer.

Seagate’s Overall Income has developed 7.7% from $11.2 billion in FY 2018 to $12 billion on an LTM foundation

• Seagate’s whole profits initially fell from $11.2 billion in FY ’18 to $10.5 billion in FY ’20, as income volume rose slower than the fall in charge for every little bit of its memory goods (Seagate’s fiscal yr ends in June).
• On the other hand, gross sales recovered step by step to $10.7 billion in FY ’21, and at this time stand as superior as $12 billion on an LTM foundation.
• Whilst Seagate stories its organization under a single functioning segment only, it is intriguing to notice that almost 50% of its product sales arrive from Singapore, with the United States and the Netherlands building up the bulk of the relaxation.
• For added particulars about Seagate’s revenues and comparison to peers, see Seagate Engineering Revenue Comparison

Profits per share elevated 43% from $38.79 in 2018 to $55.36 currently

• Seagate’s revenue rose from $11.2 billion in 2018 to $12 billion now, while the excellent share depend reduced at a brief rate, from 288 million in 2018 to under 220 million at the moment.
• Due to this, RPS has jumped from $38.79 in FY ’18 to $55.36 at present.

Value-To-Revenue (P/S) several for Seagate Engineering

STX
rose strongly from .7x in 2018 to 2.3x by 2021 close, but has pulled back again to 1.5x currently, still more than 2x increased than its 2018 stage

• Seagate’s P/S a number of rose strongly to all-around 2.3x by late 2021, on the back again of mounting investor anticipations encompassing memory goods demand from customers growth.
• Having said that, because of to the existing geopolitical tensions and improved economic uncertainty weighing on the broader marketplaces, the P/S a number of has pulled back, at the moment standing at about 1.5x.
• For more aspects about the company inventory returns and comparison to peers, see Seagate Engineering Inventory Return Comparison.

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