MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
Taking everything into account, MU scores 5 out of 10 in our fundamental rating. MU was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of MU get a neutral evaluation. Nothing too spectacular is happening here. MU is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
MU had positive earnings in the past year.
MU had a positive operating cash flow in the past year.
Of the past 5 years MU 4 years were profitable.
Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
MU's Return On Assets of 6.40% is fine compared to the rest of the industry. MU outperforms 69.72% of its industry peers.
Looking at the Return On Equity, with a value of 9.61%, MU is in the better half of the industry, outperforming 66.97% of the companies in the same industry.
The Return On Invested Capital of MU (6.01%) is better than 66.97% of its industry peers.
| 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
MU has a better Profit Margin (14.92%) than 71.56% of its industry peers.
MU's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.65%, MU is doing good in the industry, outperforming 77.98% of the companies in the same industry.
MU's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 34.73%, MU is not doing good in the industry: 64.22% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MU 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
MU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MU has been increased compared to 1 year ago.
MU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MU has an improved debt to assets ratio.
2.2 Solvency
MU has an Altman-Z score of 3.66. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
MU has a Altman-Z score of 3.66. This is comparable to the rest of the industry: MU outperforms 55.05% of its industry peers.
MU has a debt to FCF ratio of 23.69. This is a negative value and a sign of low solvency as MU would need 23.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.69, MU is in line with its industry, outperforming 48.62% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that MU is not too dependend on debt financing.
The Debt to Equity ratio of MU (0.28) is worse than 60.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.58
WACC10.31%
2.3 Liquidity
MU has a Current Ratio of 3.13. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
MU has a Current ratio (3.13) which is comparable to the rest of the industry.
MU has a Quick Ratio of 1.99. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
MU has a Quick ratio (1.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.97%, which is quite impressive.
The earnings per share for MU have been decreasing by -27.38% on average. This is quite bad
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 71.05%.
MU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
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
The Earnings Per Share is expected to grow by 54.12% on average over the next years. This is a very strong growth
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.70% yearly.
EPS Next Y464.18%
EPS Next 2Y198.8%
EPS Next 3Y108.71%
EPS Next 5Y54.12%
Revenue Next Year41.2%
Revenue Next 2Y33.58%
Revenue Next 3Y22.37%
Revenue Next 5Y13.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.59, the valuation of MU can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a rather cheap valuation: MU is cheaper than 80.73% of the companies listed in the same industry.
MU is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.17, the valuation of MU can be described as very cheap.
100.00% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.85. MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 6.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
MU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.11 | ||
| EV/EBITDA | 5.64 |
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.
A more expensive valuation may be justified as MU's earnings are expected to grow with 108.71% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y198.8%
EPS Next 3Y108.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, MU is not a good candidate for dividend investing.
The stock price of MU dropped by -35.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.98, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, MU pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of MU grows each year by 72.66%, which is quite nice.
MU has been paying a dividend for at least 10 years, so it has a reliable track record.
MU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
11.09% of the earnings are spent on dividend by MU. This is a low number and sustainable payout ratio.
MU'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%
NASDAQ:MU (4/22/2025, 2:44:09 PM)
70.01
+3.27 (+4.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.05%
Inst Owner Change0.24%
Ins Owners0.24%
Ins Owner Change-5.16%
Market Cap78.24B
Analysts82.55
Price Target128.7 (83.83%)
Short Float %2.89%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP11.09%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-1.1%
PT rev (3m)-3.67%
EPS NQ rev (1m)5.13%
EPS NQ rev (3m)-32.15%
EPS NY rev (1m)1.13%
EPS NY rev (3m)-20.64%
Revenue NQ rev (1m)3.79%
Revenue NQ rev (3m)-10.1%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 6.17 | ||
| P/S | 2.5 | ||
| P/FCF | 129.11 | ||
| P/OCF | 5.98 | ||
| P/B | 1.61 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)5.15
EY7.36%
EPS(NY)11.34
Fwd EY16.2%
FCF(TTM)0.54
FCFY0.77%
OCF(TTM)11.7
OCFY16.71%
SpS28.03
BVpS43.52
TBVpS42.11
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 | 3.66 |
F-Score7
WACC10.31%
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 Year41.2%
Revenue Next 2Y33.58%
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%