MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
237.92 USD
-0.41 (-0.17%)
239.909 USD
+1.99 (+0.84%)
Taking everything into account, MU scores 6 out of 10 in our fundamental rating. MU was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an excellent profitability rating, but there are some minor concerns on its financial health. MU is growing strongly while it is still valued neutral. This is a good combination! With these ratings, MU could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year MU was profitable.
In the past year MU had a positive cash flow from operations.
Of the past 5 years MU 4 years were profitable.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.31%, MU belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
MU's Return On Equity of 15.76% is amongst the best of the industry. MU outperforms 81.25% of its industry peers.
MU has a Return On Invested Capital of 10.51%. This is in the better half of the industry: MU outperforms 79.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROIC | 10.51% |
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
Looking at the Profit Margin, with a value of 22.84%, MU belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
MU's Profit Margin has improved in the last couple of years.
The Operating Margin of MU (26.40%) is better than 85.71% of its industry peers.
MU's Operating Margin has improved in the last couple of years.
MU has a worse Gross Margin (39.79%) than 60.71% of its industry peers.
In the last couple of years the Gross Margin of MU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.4% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% |
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) below the Cost of Capital (WACC), MU is destroying value.
Compared to 1 year ago, MU has more shares outstanding
The number of shares outstanding for MU has been increased compared to 5 years ago.
The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
MU has an Altman-Z score of 7.51. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MU (7.51) is better than 66.07% of its industry peers.
MU has a debt to FCF ratio of 8.74. This is a slightly negative value and a sign of low solvency as MU would need 8.74 years to pay back of all of its debts.
MU has a Debt to FCF ratio (8.74) which is in line with its industry peers.
MU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, MU is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 7.51 |
ROIC/WACC0.9
WACC11.68%
2.3 Liquidity
A Current Ratio of 2.52 indicates that MU has no problem at all paying its short term obligations.
With a Current ratio value of 2.52, MU perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
MU has a Quick Ratio of 1.79. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MU (1.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 552.76%, which is quite impressive.
The Earnings Per Share has been growing by 23.98% on average over the past years. This is a very strong growth
The Revenue has grown by 48.85% in the past year. This is a very strong growth!
MU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.76% yearly.
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
3.2 Future
Based on estimates for the next years, MU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.58% on average per year.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.14% yearly.
EPS Next Y106.24%
EPS Next 2Y51.88%
EPS Next 3Y31.52%
EPS Next 5Y10.58%
Revenue Next Year45.72%
Revenue Next 2Y28.29%
Revenue Next 3Y19.02%
Revenue Next 5Y10.14%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.70, MU can be considered very expensive at the moment.
77.68% of the companies in the same industry are more expensive than MU, based on the Price/Earnings ratio.
MU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.92, which indicates a correct valuation of MU.
Based on the Price/Forward Earnings ratio, MU is valued cheaply inside the industry as 91.96% of the companies are valued more expensively.
MU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
MU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MU is cheaper than 80.36% of the companies in the same industry.
MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.11 | ||
| EV/EBITDA | 14.86 |
4.3 Compensation for Growth
MU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MU has a very decent profitability rating, which may justify a higher PE ratio.
MU's earnings are expected to grow with 31.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)1.2
EPS Next 2Y51.88%
EPS Next 3Y31.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, MU is not a good candidate for dividend investing.
MU's Dividend Yield is a higher than the industry average which is at 2.14.
With a Dividend Yield of 0.19, MU pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
On average, the dividend of MU grows each year by 44.03%, which is quite nice.
MU has been paying a dividend for at least 10 years, so it has a reliable track record.
MU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)44.03%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MU pays out 6.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of MU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.11%
EPS Next 2Y51.88%
EPS Next 3Y31.52%
237.92
-0.41 (-0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.4%
Ins Owners0.19%
Ins Owner Change1.47%
Market Cap267.06B
Revenue(TTM)37.38B
Net Income(TTM)8.54B
Analysts82.96
Price Target205.22 (-13.74%)
Short Float %2.25%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.47
Dividend Growth(5Y)44.03%
DP6.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.34%
Min EPS beat(2)2.85%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)6.34%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)39.36%
EPS beat(12)11
Avg EPS beat(12)15.75%
EPS beat(16)14
Avg EPS beat(16)12.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)15.8%
PT rev (3m)39.86%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)34.27%
EPS NY rev (1m)26.19%
EPS NY rev (3m)35.83%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)8.94%
Revenue NY rev (1m)1.96%
Revenue NY rev (3m)12.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 13.92 | ||
| P/S | 7.14 | ||
| P/FCF | 160.11 | ||
| P/OCF | 15.24 | ||
| P/B | 4.93 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 14.86 |
EPS(TTM)8.29
EY3.48%
EPS(NY)17.1
Fwd EY7.19%
FCF(TTM)1.49
FCFY0.62%
OCF(TTM)15.61
OCFY6.56%
SpS33.3
BVpS48.26
TBVpS46.83
PEG (NY)0.27
PEG (5Y)1.2
Graham Number94.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROCE | 13.83% | ||
| ROIC | 10.51% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 12.61% | ||
| OM | 26.4% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% | ||
| FCFM | 4.46% |
ROA(3y)0.79%
ROA(5y)5.08%
ROE(3y)1.42%
ROE(5y)7%
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
ROICexgc growth 3Y-6.53%
ROICexgc growth 5Y15.16%
ROICexc growth 3Y-6.3%
ROICexc growth 5Y15.49%
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%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 189.86% | ||
| Cap/Sales | 42.42% | ||
| Interest Coverage | 23.6 | ||
| Cash Conversion | 96.2% | ||
| Profit Quality | 19.53% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 7.51 |
F-Score7
WACC11.68%
ROIC/WACC0.9
Cap/Depr(3y)132.21%
Cap/Depr(5y)145.52%
Cap/Sales(3y)41.74%
Cap/Sales(5y)40.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
EPS Next Y106.24%
EPS Next 2Y51.88%
EPS Next 3Y31.52%
EPS Next 5Y10.58%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year45.72%
Revenue Next 2Y28.29%
Revenue Next 3Y19.02%
Revenue Next 5Y10.14%
EBIT growth 1Y829%
EBIT growth 3Y0.54%
EBIT growth 5Y26.38%
EBIT Next Year157.12%
EBIT Next 3Y54.67%
EBIT Next 5Y27.78%
FCF growth 1Y1278.51%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y106.01%
OCF growth 3Y4.9%
OCF growth 5Y16.11%
MICRON TECHNOLOGY INC / MU FAQ
What is the ChartMill fundamental rating of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MU.
What is the valuation status of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a valuation rating of 6 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Fairly Valued.
What is the profitability of MU stock?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 7 / 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 (MU) is 28.7 and the Price/Book (PB) ratio is 4.93.
Is the dividend of MICRON TECHNOLOGY INC sustainable?
The dividend rating of MICRON TECHNOLOGY INC (MU) is 5 / 10 and the dividend payout ratio is 6.11%.