Seagate Technology Intrinsic Value Calculation – SEAGATE TECHNOLOGY Reports Fourth Quarter FY2023 Earnings Results for Period Ending July 26 2023

🌥️Earnings Overview

On July 26, 2023, SEAGATE TECHNOLOGY ($NASDAQ:STX) announced its fourth quarter earnings results for the fiscal year ending June 30, 2023. Total revenue for the quarter was reported as USD 1602.0 million, a decrease of 39.0% compared to the same quarter of the previous year. The company’s net income for the quarter was reported as USD -92.0 million, a tremendous contrast to the USD 276.0 million it had achieved in the same period of the previous year.

Market Price

The company opened at a stock price of $58.1 and closed at $58.0, a decrease of 0.5% from its previous closing price of $58.2. In addition to the strong earnings report, the company also announced the launch of its new storage solutions, including its new NVMe-based SSDs and its StorageCraft storage solutions. These new products are designed to improve the efficiency and performance of data storage operations. The company is also working on improving its customer service and developing new solutions for cloud storage and data center management.

Overall, SEAGATE TECHNOLOGY has reported strong fourth quarter earnings for FY2023, and the company is continuing to make major investments in its product lineup. With the introduction of these new storage solutions, the company is well-positioned to take advantage of the growing demand for improved storage solutions and services. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Seagate Technology. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Seagate Technology. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Seagate Technology. More…

Key Ratios Snapshot

Some of the financial key ratios for Seagate Technology are shown below. More…

Analysis – Seagate Technology Intrinsic Value Calculation

At GoodWhale, we recently completed a financial analysis of SEAGATE TECHNOLOGY to determine its intrinsic value. After taking many factors into consideration, we determined that the intrinsic value of SEAGATE TECHNOLOGY shares is around $74.5. This figure was calculated using our proprietary Valuation Line tool. Currently, SEAGATE TECHNOLOGY is trading at around $58.0, which is 22.2% lower than its intrinsic value. This indicates that SEAGATE TECHNOLOGY is currently undervalued, making it an attractive investment opportunity for those looking for potentially high returns. More…

Peers

Its major competitors include Western Digital Corp, Micron Technology Inc, and NVIDIA Corp. All of these companies are committed to providing innovative solutions that enable users to manage and access their data with ease.

– Western Digital Corp ($NASDAQ:WDC)

Western Digital Corp is a leading storage technology company that designs, manufactures, and sells data storage solutions. The company has a market cap of 11.34B as of 2022, reflecting its strong financial performance and continued success in the storage industry. Western Digital’s Return on Equity (ROE) is 9.22%, which is higher than the industry average. This demonstrates the company’s efficient use of shareholder funds, as well as its ability to generate profits from its operations. Western Digital has a wide range of products and services, from hard drives to solid-state drives, which are used in everyday devices such as computers, gaming consoles, and smartphones.

– Micron Technology Inc ($NASDAQ:MU)

Micron Technology Inc is a leading global provider of semiconductor memory solutions, systems, and technologies. The company is headquartered in Boise, Idaho and has operations in the United States, Asia, and Europe. As of 2022, Micron Technology Inc had a market capitalization of 59.86B and a Return on Equity (ROE) of 12.3%. The market cap of the company is an indication of its size and the return on equity is an indication of how well it is managing its assets and generating profit. The company’s strong ROE indicates that it is effectively utilizing its resources and creating value for shareholders.

– NVIDIA Corp ($NASDAQ:NVDA)

NVIDIA Corporation is a leading global technology company that designs, manufactures, and markets graphics processing units (GPUs) for gaming, professional visualization, data centers, and artificial intelligence (AI). As of 2022, NVIDIA has a market cap of 422.36 billion dollars, making it one of the largest technology companies in the world. The company has also achieved an impressive Return on Equity (ROE) of 15.77%, indicating that it has proven to be a profitable investment. NVIDIA’s success can be attributed to its focus on developing innovative products, as well as its ability to adapt to and meet the needs of a rapidly evolving technology market.

Summary

SEAGATE TECHNOLOGY reported its fiscal fourth quarter of 2023 results on June 30, with total revenue of USD 1602 million. This marked a 39.0% decrease from the same period in the previous year. Net income also fell drastically from USD 276.0 million to USD -92.0 million. This performance is concerning for investors, as SEAGATE TECHNOLOGY’s share price is likely to suffer in the short-term.

However, investors will be closely monitoring the company’s plan to reduce costs and shore up profits in the coming quarters to determine if more long-term investment is warranted.