Seagate Technology Holdings plc

Storage/HDD maker in a strong AI-driven upcycle with high margins and growth, but negative equity and thin liquidity.

Strengths

• Strong margins and growth — operating margin 20.8% (85th), revenue +38.9% (81st), net income +338.5% (92nd)
• Strong returns and FCF — ROA 18.3% (93rd), FCF $818.0M (81st)

Risks

• Negative equity — ROE -324.3% and D/E -11.03 from buybacks
• Thin liquidity — quick ratio 0.84 (15th)
• Severe storage cyclicality — per 10-K

Notable findings

• Negative equityNegative book equity (debt/equity -11.03)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~100% of revenue from one customer/distributor — Results of Operations We list in the tables below summarized information from our Consolidated Statements of Operations by dollar amounts and as a percentage of revenue: Fiscal Years Ended (Dol
• Strong balance sheetStrong balance sheet — $891M cash & investments
• Buying back stockNet buyback — share count -4%/yr over 4y
• China exposure• Some of our products and services are subject to export control laws and other laws affecting the countries in which our products and services may be sold, distributed, or delivered, and any changes
• Insider sellingInsider selling — 233 open-market sale(s) by 11 insider(s) (cluster of 11 insiders, ~$152M, last 6mo) Form 4 ↗