Seagate Technology Holdings PLC — Earnings Quality Grade F
STX · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 15 days
AR growth 123.5% exceeds revenue growth 38.9%
Revenue 38.9%, CFFO 18.0%. Cash follows revenue
Expense Quality
Inventory 16.2% vs COGS 17.6%. Normal
CapEx growth 4.3% vs revenue 38.9%. Normal
SG&A/Gross Profit = 17.5%, excellent (<30%)
Gross margin rose +11.7pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 0.74. Below 1.0
FCF $0.8B, FCF/NI = 0.56
Accruals ratio = 4.8%. Low accruals
Cash $0.9B covers only 18% of debt $5.0B
Balance Sheet Health
Goodwill+Intangibles $1.2B = -270% of equity. Manageable
Debt/EBITDA = 2.4x. Healthy
Other assets -20.7% vs revenue 38.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -1.48 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10