MICRON TECHNOLOGY INC (1MU.MI) Stock Fundamental Analysis
BIT:1MU - Euronext Milan - US5951121038 - Common Stock - Currency: EUR
Overall 1MU gets a fundamental rating of 4 out of 10. We evaluated 1MU against 58 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year 1MU was profitable.
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
1MU has a Return On Assets of 5.43%. This is in the lower half of the industry: 1MU underperforms 63.79% of its industry peers.
Looking at the Return On Equity, with a value of 8.30%, 1MU is doing worse than 65.52% of the companies in the same industry.
The Return On Invested Capital of 1MU (4.45%) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 8.3% | ||
| ROIC | 4.45% |
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
1MU's Profit Margin of 13.34% is in line compared to the rest of the industry. 1MU outperforms 50.00% of its industry peers.
1MU's Profit Margin has declined in the last couple of years.
1MU has a Operating Margin (15.00%) which is comparable to the rest of the industry.
1MU's Operating Margin has declined in the last couple of years.
1MU's Gross Margin of 30.92% is on the low side compared to the rest of the industry. 1MU is outperformed by 89.66% of its industry peers.
1MU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 13.34% | ||
| GM | 30.92% |
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
1MU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1MU has more shares outstanding
The number of shares outstanding for 1MU has been increased compared to 5 years ago.
1MU has a better debt/assets ratio than last year.
2.2 Solvency
1MU has an Altman-Z score of 4.20. 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 4.20, 1MU is in line with its industry, outperforming 43.10% of the companies in the same industry.
The Debt to FCF ratio of 1MU is 24.88, which is on the high side as it means it would take 1MU, 24.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MU (24.88) is worse than 72.41% 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's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. 1MU outperforms 46.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 24.88 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.41
WACC10.97%
2.3 Liquidity
1MU has a Current Ratio of 2.72. This indicates that 1MU is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.72, 1MU is doing good in the industry, outperforming 68.97% of the companies in the same industry.
1MU has a Quick Ratio of 1.75. This is a normal value and indicates that 1MU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.75, 1MU is in line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
1MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 199.75%, which is quite impressive.
1MU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.38% yearly.
1MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 79.80%.
Measured over the past years, 1MU shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)199.75%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%288.42%
Revenue 1Y (TTM)79.8%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
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 54.17% on average per year.
1MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.96% yearly.
EPS Next Y457.89%
EPS Next 2Y195.79%
EPS Next 3Y109.36%
EPS Next 5Y54.17%
Revenue Next Year39.2%
Revenue Next 2Y31.87%
Revenue Next 3Y21.37%
Revenue Next 5Y12.96%
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
1MU is valuated rather expensively with a Price/Earnings ratio of 23.07.
1MU's Price/Earnings is on the same level as the industry average.
1MU is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.32 indicates a reasonable valuation of 1MU.
1MU's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1MU is cheaper than 94.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1MU to the average of the S&P500 Index (22.10), we can say 1MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MU is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
72.41% of the companies in the same industry are cheaper than 1MU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 185.86 | ||
| EV/EBITDA | 8.83 |
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 109.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y195.79%
EPS Next 3Y109.36%
5. Dividend
5.1 Amount
1MU has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 1.50, 1MU has a dividend in line with its industry peers.
With a Dividend Yield of 0.52, 1MU pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of 1MU grows each year by 72.66%, which is quite nice.
Dividend Growth(5Y)72.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MU pays out 13.27% 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.
DP13.27%
EPS Next 2Y195.79%
EPS Next 3Y109.36%
BIT:1MU (3/6/2025, 7:00:00 PM)
85.12
+0.04 (+0.05%)
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 Cap94.84B
Analysts82.17
Price Target125.04 (46.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.43
Dividend Growth(5Y)72.66%
DP13.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.48%
Min EPS beat(2)0.31%
Max EPS beat(2)0.66%
EPS beat(4)4
Avg EPS beat(4)71.16%
Min EPS beat(4)0.31%
Max EPS beat(4)265.31%
EPS beat(8)8
Avg EPS beat(8)43.73%
EPS beat(12)11
Avg EPS beat(12)15.11%
EPS beat(16)14
Avg EPS beat(16)11.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-1.46%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)5.68%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.36%
PT rev (1m)-0.42%
PT rev (3m)-8.57%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-26.78%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-22.73%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-12.74%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-8.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 8.32 | ||
| P/S | 3.54 | ||
| P/FCF | 185.86 | ||
| P/OCF | 9.95 | ||
| P/B | 2.2 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)3.69
EY4.34%
EPS(NY)10.23
Fwd EY12.02%
FCF(TTM)0.46
FCFY0.54%
OCF(TTM)8.56
OCFY10.05%
SpS24.05
BVpS38.69
TBVpS37.39
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 8.3% | ||
| ROCE | 6.99% | ||
| ROIC | 4.45% | ||
| ROICexc | 5.06% | ||
| ROICexgc | 5.21% | ||
| OM | 15% | ||
| PM (TTM) | 13.34% | ||
| GM | 30.92% | ||
| FCFM | 1.9% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 24.88 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 124.08% | ||
| Cap/Sales | 33.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.43% | ||
| Profit Quality | 14.27% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 4.2 |
F-Score7
WACC10.97%
ROIC/WACC0.41
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)199.75%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%288.42%
EPS Next Y457.89%
EPS Next 2Y195.79%
EPS Next 3Y109.36%
EPS Next 5Y54.17%
Revenue 1Y (TTM)79.8%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
Revenue Next Year39.2%
Revenue Next 2Y31.87%
Revenue Next 3Y21.37%
Revenue Next 5Y12.96%
EBIT growth 1Y168.52%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year924.73%
EBIT Next 3Y143.49%
EBIT Next 5Y72.84%
FCF growth 1Y-40.75%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y-15.07%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%