MICRON TECHNOLOGY INC (1MU.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MU - US5951121038 - Common Stock
328.35 EUR
-4.9 (-1.47%)
Overall 1MU gets a fundamental rating of 6 out of 10. We evaluated 1MU against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MU has only an average score on both its financial health and profitability. 1MU is growing strongly while it is still valued neutral. This is a good combination! This makes 1MU very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- 1MU had positive earnings in the past year.
- In the past year 1MU had a positive cash flow from operations.
- Of the past 5 years 1MU 4 years were profitable.
- In the past 5 years 1MU always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1MU (13.85%) is better than 73.91% of its industry peers.
- 1MU's Return On Equity of 20.25% is fine compared to the rest of the industry. 1MU outperforms 66.67% of its industry peers.
- 1MU has a Return On Invested Capital of 14.22%. This is in the better half of the industry: 1MU outperforms 68.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.85% | ||
| ROE | 20.25% | ||
| ROIC | 14.22% |
ROA(3y)0.79%
ROA(5y)5.08%
ROE(3y)1.42%
ROE(5y)7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1MU's Profit Margin of 28.15% is fine compared to the rest of the industry. 1MU outperforms 76.81% of its industry peers.
- 1MU's Profit Margin has improved in the last couple of years.
- 1MU's Operating Margin of 32.68% is fine compared to the rest of the industry. 1MU outperforms 79.71% of its industry peers.
- In the last couple of years the Operating Margin of 1MU has grown nicely.
- The Gross Margin of 1MU (45.31%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of 1MU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.68% | ||
| PM (TTM) | 28.15% | ||
| GM | 45.31% |
OM growth 3Y-5.79%
OM growth 5Y13.08%
PM growth 3Y-6.83%
PM growth 5Y12.75%
GM growth 3Y-4.15%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MU is creating some value.
- Compared to 1 year ago, 1MU has more shares outstanding
- Compared to 5 years ago, 1MU has more shares outstanding
- The debt/assets ratio for 1MU has been reduced compared to a year ago.
2.2 Solvency
- 1MU has an Altman-Z score of 12.08. This indicates that 1MU is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 12.08, 1MU is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
- The Debt to FCF ratio of 1MU is 2.53, which is a good value as it means it would take 1MU, 2.53 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.53, 1MU is in line with its industry, outperforming 47.83% of the companies in the same industry.
- A Debt/Equity ratio of 0.19 indicates that 1MU is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, 1MU perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 12.08 |
ROIC/WACC1.32
WACC10.8%
2.3 Liquidity
- A Current Ratio of 2.46 indicates that 1MU has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.46, 1MU is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- A Quick Ratio of 1.78 indicates that 1MU should not have too much problems paying its short term obligations.
- 1MU has a Quick ratio of 1.78. This is comparable to the rest of the industry: 1MU outperforms 57.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
- 1MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.30%, which is quite impressive.
- 1MU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.98% yearly.
- The Revenue has grown by 45.43% in the past year. This is a very strong growth!
- 1MU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.76% yearly.
EPS 1Y (TTM)181.3%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%167.04%
Revenue 1Y (TTM)45.43%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%56.65%
3.2 Future
- 1MU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.31% yearly.
- The Revenue is expected to grow by 15.11% on average over the next years. This is quite good.
EPS Next Y313.37%
EPS Next 2Y133.56%
EPS Next 3Y71.64%
EPS Next 5Y19.31%
Revenue Next Year103.71%
Revenue Next 2Y60.77%
Revenue Next 3Y38.81%
Revenue Next 5Y15.11%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- 1MU is valuated quite expensively with a Price/Earnings ratio of 34.17.
- 1MU's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MU is cheaper than 62.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1MU is valued a bit more expensive.
- A Price/Forward Earnings ratio of 8.53 indicates a reasonable valuation of 1MU.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MU indicates a rather cheap valuation: 1MU is cheaper than 98.55% of the companies listed in the same industry.
- 1MU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.17 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
- 1MU's Enterprise Value to EBITDA is on the same level as the industry average.
- 1MU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1MU is more expensive than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.27 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1MU has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1MU's earnings are expected to grow with 71.64% in the coming years.
PEG (NY)0.11
PEG (5Y)1.42
EPS Next 2Y133.56%
EPS Next 3Y71.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.12%, 1MU is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, 1MU is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
5.2 History
- The dividend of 1MU is nicely growing with an annual growth rate of 44.19%!
Dividend Growth(5Y)44.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MU pays out 4.41% of its income as dividend. This is a sustainable payout ratio.
- 1MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.41%
EPS Next 2Y133.56%
EPS Next 3Y71.64%
MICRON TECHNOLOGY INC / 1MU.MI FAQ
What is the fundamental rating for 1MU stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MU.MI.
What is the valuation status of MICRON TECHNOLOGY INC (1MU.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to MICRON TECHNOLOGY INC (1MU.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for MICRON TECHNOLOGY INC?
MICRON TECHNOLOGY INC (1MU.MI) has a profitability rating of 6 / 10.
What is the valuation of MICRON TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICRON TECHNOLOGY INC (1MU.MI) is 34.17 and the Price/Book (PB) ratio is 7.38.
Is the dividend of MICRON TECHNOLOGY INC sustainable?
The dividend rating of MICRON TECHNOLOGY INC (1MU.MI) is 3 / 10 and the dividend payout ratio is 4.41%.