MICRON TECHNOLOGY INC (1MU.MI) Stock Fundamental Analysis
BIT:1MU - Euronext Milan - US5951121038 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1MU. 1MU was compared to 53 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1MU seems to be doing ok healthwise, there are quite some concerns on its profitability. 1MU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year 1MU was profitable.
1MU had a positive operating cash flow in the past year.
1MU had positive earnings in 4 of the past 5 years.
In the past 5 years 1MU always reported a positive cash flow from operatings.
1.2 Ratios
1MU has a Return On Assets (6.40%) which is in line with its industry peers.
1MU has a Return On Equity of 9.61%. This is comparable to the rest of the industry: 1MU outperforms 42.59% of its industry peers.
With a Return On Invested Capital value of 6.01%, 1MU perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 9.61% | ||
| ROIC | 6.01% |
ROA(3y)1.72%
ROA(5y)4.02%
ROE(3y)1.97%
ROE(5y)5.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 14.92%, 1MU perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MU has declined.
1MU's Operating Margin of 19.65% is in line compared to the rest of the industry. 1MU outperforms 57.41% of its industry peers.
In the last couple of years the Operating Margin of 1MU has declined.
1MU has a worse Gross Margin (34.73%) than 77.78% of its industry peers.
In the last couple of years the Gross Margin of 1MU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.65% | ||
| PM (TTM) | 14.92% | ||
| GM | 34.73% |
OM growth 3Y-44.62%
OM growth 5Y-33.31%
PM growth 3Y-47.29%
PM growth 5Y-35.13%
GM growth 3Y-16.06%
GM growth 5Y-13.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1MU is destroying value.
The number of shares outstanding for 1MU has been increased compared to 1 year ago.
Compared to 5 years ago, 1MU has more shares outstanding
1MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.96 indicates that 1MU is not in any danger for bankruptcy at the moment.
1MU has a Altman-Z score of 3.96. This is comparable to the rest of the industry: 1MU outperforms 46.30% of its industry peers.
1MU has a debt to FCF ratio of 23.69. This is a negative value and a sign of low solvency as 1MU would need 23.69 years to pay back of all of its debts.
The Debt to FCF ratio of 1MU (23.69) is worse than 68.52% of its industry peers.
1MU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
1MU has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 3.96 |
ROIC/WACC0.58
WACC10.42%
2.3 Liquidity
A Current Ratio of 3.13 indicates that 1MU has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.13, 1MU is doing good in the industry, outperforming 72.22% of the companies in the same industry.
1MU has a Quick Ratio of 1.99. This is a normal value and indicates that 1MU is financially healthy and should not expect problems in meeting its short term obligations.
1MU has a better Quick ratio (1.99) than 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
1MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.97%, which is quite impressive.
Measured over the past years, 1MU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.38% on average per year.
The Revenue has grown by 71.05% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.42% on average over the past years.
EPS 1Y (TTM)269.97%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%271.43%
Revenue 1Y (TTM)71.05%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%38.27%
3.2 Future
Based on estimates for the next years, 1MU will show a very strong growth in Earnings Per Share. The EPS will grow by 54.12% on average per year.
Based on estimates for the next years, 1MU will show a quite strong growth in Revenue. The Revenue will grow by 13.70% on average per year.
EPS Next Y464.18%
EPS Next 2Y198.8%
EPS Next 3Y108.71%
EPS Next 5Y54.12%
Revenue Next Year41.23%
Revenue Next 2Y33.41%
Revenue Next 3Y22.37%
Revenue Next 5Y13.7%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.15 indicates a correct valuation of 1MU.
Based on the Price/Earnings ratio, 1MU is valued a bit cheaper than the industry average as 75.93% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1MU to the average of the S&P500 Index (28.79), we can say 1MU is valued slightly cheaper.
The Price/Forward Earnings ratio is 6.87, which indicates a rather cheap valuation of 1MU.
1MU's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1MU is cheaper than 98.15% of the companies in the same industry.
1MU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MU indicates a somewhat cheap valuation: 1MU is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1MU is valued a bit more expensive than 68.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 143.72 | ||
| EV/EBITDA | 6.52 |
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's earnings are expected to grow with 108.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y198.8%
EPS Next 3Y108.71%
5. Dividend
5.1 Amount
1MU has a yearly dividend return of 0.59%, which is pretty low.
In the last 3 months the price of 1MU has falen by -32.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.58, 1MU has a dividend in line with its industry peers.
With a Dividend Yield of 0.59, 1MU pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of 1MU is nicely growing with an annual growth rate of 72.66%!
Dividend Growth(5Y)72.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MU pays out 11.09% 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.
DP11.09%
EPS Next 2Y198.8%
EPS Next 3Y108.71%
BIT:1MU (4/25/2025, 7:00:00 PM)
68.62
+4.08 (+6.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.05%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap76.69B
Analysts82.55
Price Target107.75 (57.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.41
Dividend Growth(5Y)72.66%
DP11.09%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.35%
Min EPS beat(2)0.31%
Max EPS beat(2)6.39%
EPS beat(4)4
Avg EPS beat(4)6.43%
Min EPS beat(4)0.31%
Max EPS beat(4)18.38%
EPS beat(8)8
Avg EPS beat(8)40.07%
EPS beat(12)11
Avg EPS beat(12)15.17%
EPS beat(16)14
Avg EPS beat(16)12.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-0.27%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)-13.83%
PT rev (3m)-13.57%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-32.15%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-20.64%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-10.1%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 6.87 | ||
| P/S | 2.78 | ||
| P/FCF | 143.72 | ||
| P/OCF | 6.66 | ||
| P/B | 1.79 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 6.52 |
EPS(TTM)4.53
EY6.6%
EPS(NY)9.98
Fwd EY14.55%
FCF(TTM)0.48
FCFY0.7%
OCF(TTM)10.3
OCFY15.01%
SpS24.68
BVpS38.32
TBVpS37.08
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 9.61% | ||
| ROCE | 9.44% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 7.07% | ||
| OM | 19.65% | ||
| PM (TTM) | 14.92% | ||
| GM | 34.73% | ||
| FCFM | 1.93% |
ROA(3y)1.72%
ROA(5y)4.02%
ROE(3y)1.97%
ROE(5y)5.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-49.51%
ROICexcg growth 5Y-37.89%
ROICexc growth 3Y-49.41%
ROICexc growth 5Y-37.69%
OM growth 3Y-44.62%
OM growth 5Y-33.31%
PM growth 3Y-47.29%
PM growth 5Y-35.13%
GM growth 3Y-16.06%
GM growth 5Y-13.34%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 154.87% | ||
| Cap/Sales | 39.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.03% | ||
| Profit Quality | 12.97% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 3.96 |
F-Score7
WACC10.42%
ROIC/WACC0.58
Cap/Depr(3y)125.44%
Cap/Depr(5y)136.66%
Cap/Sales(3y)40.67%
Cap/Sales(5y)39.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)269.97%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%271.43%
EPS Next Y464.18%
EPS Next 2Y198.8%
EPS Next 3Y108.71%
EPS Next 5Y54.12%
Revenue 1Y (TTM)71.05%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%38.27%
Revenue Next Year41.23%
Revenue Next 2Y33.41%
Revenue Next 3Y22.37%
Revenue Next 5Y13.7%
EBIT growth 1Y247.6%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year930.09%
EBIT Next 3Y144.24%
EBIT Next 5Y73.34%
FCF growth 1Y131.17%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y46.87%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%