Seagate Technology (STX)

Yiheng Huang
Tech
19th Nov 2014

Computer Peripherals Data Storage

Main Activities

Data storage products and subsytems

Data storage services
Online backup
Data protection
Recovery solutions

Key Economic Drivers

Key Statistics

Market Cap: $21.15 Billion

Revenue: $13.724 Billion
Profit: $3.85 Billion
P/E Ratio: 14.41
Growth: 5.8%

Proliferation of data
Evolution in data access and distribution
Increased emphasis on security of data
Lowered costs of electronic components

Future Outlook

Trends Advancement in cloud, mobile

and open source computing driving
growth of digital content
Challenges Difficult to predict
demand. Industry operates on quarterly
purchasing cycles

Market Segmentation

Seagate Technology (STX)

Mission Statement: N/A
Main Products/Services: Electronic data storage solutions, HDDs and SSDs, data
storage services

Headquarters/Geographic Coverage: Headquarters in Cupertino, California.

Incorporated in Dublin, Ireland. Global coverage. Revenue by geography: Asia
Pacific (54%), Americas (27%), EMEA (19%)
People: Chairman and CEO Stephen J. Luczo
CFO and Executive VP Patrick J. OMalley III
No. of Full Time Employees: 52,100
Major Projects/News: Seagate ClusterStor Secure Data Appliance, the industrys
first compliant parallel file system solution
Seagate Kinetic Open Storage platform (simplifying cloud storage architecture),
dramatically decreasing total cost of ownership

Seagate Technology (STX)

Revenue: $13.724B
Sales Growth: 5.8%
Net Income: $1.57B
Total Assets: $9.492B
Current Price: $64.65
Previous Close: $63.99

Open: $64.13
1y Target Estimate: $64.66
Beta: 2.34
52 week Range:
$47.25 -$65.00
Average Volume: 2.8M

Market Cap: $21.15B

P/E: 14.41
PEG: 0.99
EPS: 4.49
Dividend & Yield: $2.16 (3.40%)

Competitor Analysis
Company

Description

Western Digital Data storage

Corporation
solutions, products
(WDC)
include HDDs, SSDs,

SanDisk Corp.
(SNDK)

Toshiba Corp
(TYO)

Focuses on flash
storage solutions,
products include
SSDs, solutions for
enterprise data
centers, etc.
Diversified products
and services, such as
power systems,
storage devices,
household appliances

Geographic Reach

Key Financials

Worldwide

Market Cap: 23.31B

P/E: 15.71
PEG: 1.79
EPS: 6.39
Dividend/Yield: 1.60 (1.60%)

Worldwide

Market Cap: 22.03B

P/E: 20.77
PEG: 0.94
EPS: 4.81
Dividend/Yield: 1.20 (1.20%)

Worldwide

Market Cap: 17.78B

P/E: 28.27
PEG: -4.39
EPS: 0.218
Dividend/Yield: 0.0342
(1.65%)

DCF Analysis

Seagate Technology (STX) Buy

Growth in the industry fueled by increased demand
for data storage (Expected to multiply by 10 times
between 2013 and 2020)
Acquisition of Xyratex in March 2014 Better vertical
integration of backend testing and integrating drives
onto OEM capital equipment to support
Relatively low P/E ratio despite strong projected
growth Undervalued