Seagate Technology HoldingsMEX:STX N 62 Gross Margin % is 46.50% as of Mar. 2026, which is 67% above its 10-year median of 27.77. GuruFocus rates MEX:STX N with a GF Score™ of 62/100 and a GF Value™ of MXN2,623.48 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,454 Hardware companies, Seagate Technology Holdings ranks better than 78.69% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Seagate Technology Holdings had a gross margin of 46.50% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Seagate Technology Holdings Gross Margin % Related Terms
Seagate Technology Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:STX N vs WDC, ANET, DELL: Gross Margin % Comparison
For the Computer Hardware subindustry, Seagate Technology Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Seagate Technology Holdings Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Seagate Technology Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Seagate Technology Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Seagate Technology Holdings (MEX:STX N) has a Gross Margin % of 46.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Seagate Technology Holdings and its competitors. This is 67% above median its historical median of 27.77. Over the past decade, Seagate Technology Holdings' Gross Margin % has ranged from 18.30 to 41.54. According to the industry distribution chart, Seagate Technology Holdings ranks #523 out of 2454 companies in the Hardware industry, placing it in the top 21.3%.
Is Seagate Technology Holdings' Gross Margin % too high?
Seagate Technology Holdings' current Gross Margin % of 46.50% is 67% above median its 10-year median of 27.77. Over the past 10 years, this metric has ranged from a low of 18.30 to a high of 41.54. The Hardware industry median Gross Margin % is 24.57. Seagate Technology Holdings' value of 46.50% is 89.3% above this industry median. Based on the distribution chart, Seagate Technology Holdings ranks #523 out of 2454 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Seagate Technology Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seagate Technology Holdings' Gross Margin % compare to WDC and ANET?
According to the Hardware industry distribution chart, Seagate Technology Holdings ranks #523 out of 2454 companies for Gross Margin %. This places Seagate Technology Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.57. Seagate Technology Holdings' value of 46.50% is 89.3% above this benchmark. Historically, Seagate Technology Holdings' own Gross Margin % has ranged from 18.30 to 41.54 over the past decade. While the company's 10-year median is 27.77 vs. the industry median of 24.57, Seagate Technology Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.57, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Seagate Technology Holdings's current Gross Margin % of 46.50% is 89.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Seagate Technology Holdings and its competitors. For the Hardware industry, the median Gross Margin % is 24.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seagate Technology Holdings's current Gross Margin % is 46.50%, which is 67% above median its own 10-year median of 27.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seagate Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, Seagate Technology Holdings (MEX:STX N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,623.48, compared to a current price of MXN16,117.50 — trading 514.4% above its estimated fair value. The current Gross Margin % is 46.50%, which is 67% above median its 10-year median of 27.77 and 89.3% above the Hardware industry median of 24.57. Seagate Technology Holdings' overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Seagate Technology Holdings (MEX:STX N), the current Gross Margin % is 46.50% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Seagate Technology Holdings (MEX:STX N) Overvalued in 2026?
Based on GuruFocus' analysis, Seagate Technology Holdings stock appears to be overvalued.
The current stock price of MXN16,117.50 is trading 514.4% above its estimated GF Value™ of MXN2,623.48.
GuruFocus considers Seagate Technology Holdings to be Significantly Overvalued.
Key valuation signals for MEX:STX N:
Gross Margin %: 46.50% (67% above median its 10-year median of 27.77)
GF Value™: MXN2,623.48 vs. price of MXN16,117.50 (514.4% above fair value)
Industry Position: 89.3% above the Hardware median (#523 of 2454)
No single metric tells the full story. See the MEX:STX N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seagate Technology is a leading supplier of hard disk drives for data storage to the enterprise and consumer markets. It forms a practical duopoly in the market with its chief rival, Western Digital; they are both vertically integrated.
62GF Score
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