Seagate Technology HoldingsSTX -10.38%70 3-Year ROIIC % is 6.88 as of Jun. 2025, which is 74% below its 10-year median of 26.36. GuruFocus rates STX with a GF Score™ of 70/100 and a GF Value™ of $158.97 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,369 Hardware companies, Seagate Technology Holdings ranks better than 56.9% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Seagate Technology Holdings's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 6.88%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Seagate Technology Holdings's 3-Year ROIIC % or its related term are showing as below:
STX's 3-Year ROIIC % is ranked better than 56.9% of 2369
companies
in the Hardware industry
Industry Median: 2.36
vs STX: 6.88
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Seagate Technology Holdings 3-Year ROIIC % Related Terms
Seagate Technology Holdings 3-Year ROIIC % 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.
For the Computer Hardware subindustry, Seagate Technology Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Seagate Technology Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Seagate Technology Holdings's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1859.2735 (Jun. 2025) - 1922.9518 (Jun. 2022) )
/
( 4836 (Jun. 2025) - 5761 (Jun. 2022) )
=
-63.6783
/
-925
=
6.88%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Seagate Technology Holdings (STX) has a 3-Year ROIIC % of 6.88 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Seagate Technology Holdings and its competitors. This is 74% below median its historical median of 26.36. According to the industry distribution chart, Seagate Technology Holdings ranks #1021 out of 2369 companies in the Hardware industry, placing it in the top 43.1%.
Is Seagate Technology Holdings' 3-Year ROIIC % too high?
Seagate Technology Holdings' current 3-Year ROIIC % of 6.88 is 74% below median its 10-year median of 26.36. The Hardware industry median 3-Year ROIIC % is 2.36. Seagate Technology Holdings' value of 6.88 is 191.5% above this industry median. Based on the distribution chart, Seagate Technology Holdings ranks #1021 out of 2369 companies in the Hardware industry, which is above the industry midpoint. Overall, Seagate Technology Holdings has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seagate Technology Holdings' 3-Year ROIIC % compare to WDC and ANET?
According to the Hardware industry distribution chart, Seagate Technology Holdings ranks #1021 out of 2369 companies for 3-Year ROIIC %. This puts Seagate Technology Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 2.36. Seagate Technology Holdings' value of 6.88 is 191.5% above this benchmark. While the company's 10-year median is 26.36 vs. the industry median of 2.36, 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.36, based on 2,369 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Seagate Technology Holdings's current 3-Year ROIIC % of 6.88 is 191.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Seagate Technology Holdings and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seagate Technology Holdings's current 3-Year ROIIC % is 6.88, which is 74% below median its own 10-year median of 26.36. 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 (STX) is currently considered Significantly Overvalued. The stock's GF Value™ is $158.97, compared to a current price of $820.16 — trading 415.9% above its estimated fair value. The current 3-Year ROIIC % is 6.88, which is 74% below median its 10-year median of 26.36 and 191.5% above the Hardware industry median of 2.36. Seagate Technology Holdings' overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Seagate Technology Holdings (STX), the current 3-Year ROIIC % is 6.88 as of Jun. 2025. 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 (STX) Overvalued in 2026?
Based on GuruFocus' analysis, Seagate Technology Holdings stock appears to be overvalued.
The current stock price of $820.16 is trading 415.9% above its estimated GF Value™ of $158.97.
GuruFocus considers Seagate Technology Holdings to be Significantly Overvalued.
Key valuation signals for STX:
3-Year ROIIC %: 6.88 (74% below median its 10-year median of 26.36)
GF Value™: $158.97 vs. price of $820.16 (415.9% above fair value)
Industry Position: 191.5% above the Hardware median (#1021 of 2369)
No single metric tells the full story. See the STX 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.
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