276.27 USD
-0.32 (-0.12%)
275.94 USD
-0.33 (-0.12%)
We assign a fundamental rating of 7 out of 10 to MU. MU was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: MU is growing strongly while it also seems undervalued. With these ratings, MU could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
MU had positive earnings in the past year.
In the past year MU had a positive cash flow from operations.
Of the past 5 years MU 4 years were profitable.
MU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MU's Return On Assets of 13.85% is amongst the best of the industry. MU outperforms 86.73% of its industry peers.
Looking at the Return On Equity, with a value of 20.25%, MU belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.22%, MU belongs to the best of the industry, outperforming 87.61% of the companies in the same industry.
| 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
MU's Profit Margin of 28.15% is amongst the best of the industry. MU outperforms 85.84% of its industry peers.
MU's Profit Margin has improved in the last couple of years.
MU's Operating Margin of 32.68% is amongst the best of the industry. MU outperforms 91.15% of its industry peers.
In the last couple of years the Operating Margin of MU has grown nicely.
The Gross Margin of MU (45.31%) is comparable to the rest of the industry.
MU's Gross Margin has improved in the last couple of years.
| 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
MU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MU has more shares outstanding than it did 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 9.01. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
MU's Altman-Z score of 9.01 is fine compared to the rest of the industry. MU outperforms 69.91% of its industry peers.
MU has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as MU would need 2.53 years to pay back of all of its debts.
The Debt to FCF ratio of MU (2.53) is better than 65.49% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that MU is not too dependend on debt financing.
MU has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 9.01 |
ROIC/WACC1.35
WACC10.55%
2.3 Liquidity
A Current Ratio of 2.46 indicates that MU has no problem at all paying its short term obligations.
MU's Current ratio of 2.46 is in line compared to the rest of the industry. MU outperforms 41.59% of its industry peers.
A Quick Ratio of 1.78 indicates that MU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.78, MU is not doing good in the industry: 61.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 181.30% over the past year.
The Earnings Per Share has been growing by 23.98% on average over the past years. This is a very strong growth
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.43%.
The Revenue has been growing by 11.76% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 10.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.59% on average over the next years. This is quite good.
EPS Next Y257.63%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
EPS Next 5Y10.58%
Revenue Next Year85.19%
Revenue Next 2Y50.74%
Revenue Next 3Y32.3%
Revenue Next 5Y12.59%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 24.49, MU is valued on the expensive side.
Based on the Price/Earnings ratio, MU is valued cheaper than 82.30% of the companies in the same industry.
MU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.62, the valuation of MU can be described as very cheap.
Based on the Price/Forward Earnings ratio, MU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MU to the average of the S&P500 Index (23.93), we can say MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
84.07% of the companies in the same industry are more expensive than MU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MU is valued a bit cheaper than the industry average as 60.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.83 | ||
| EV/EBITDA | 13.96 |
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.
The excellent profitability rating of MU may justify a higher PE ratio.
MU's earnings are expected to grow with 67.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)1.02
EPS Next 2Y109.16%
EPS Next 3Y67.67%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.17%, which is pretty low.
MU's Dividend Yield is a higher than the industry average which is at 0.56.
Compared to an average S&P500 Dividend Yield of 1.87, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
On average, the dividend of MU grows each year by 44.19%, 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)44.19%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
4.41% 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.
DP4.41%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
276.27
-0.32 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.82%
Inst Owner Change-0.21%
Ins Owners0.23%
Ins Owner Change-0.03%
Market Cap310.90B
Revenue(TTM)42.31B
Net Income(TTM)11.91B
Analysts82.64
Price Target294.82 (6.71%)
Short Float %2.04%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.47
Dividend Growth(5Y)44.19%
DP4.41%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.12%
Min EPS beat(2)2.85%
Max EPS beat(2)17.39%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)2.85%
Max EPS beat(4)17.39%
EPS beat(8)8
Avg EPS beat(8)40.89%
EPS beat(12)12
Avg EPS beat(12)32.69%
EPS beat(16)15
Avg EPS beat(16)13.99%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)3.12%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)3.12%
Revenue beat(8)3
Avg Revenue beat(8)0.28%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)4
Avg Revenue beat(16)-0.74%
PT rev (1m)43.66%
PT rev (3m)98.24%
EPS NQ rev (1m)94.96%
EPS NQ rev (3m)157.9%
EPS NY rev (1m)73.4%
EPS NY rev (3m)118.83%
Revenue NQ rev (1m)35.56%
Revenue NQ rev (3m)47.91%
Revenue NY rev (1m)27.09%
Revenue NY rev (3m)40%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 7.62 | ||
| P/S | 7.35 | ||
| P/FCF | 66.83 | ||
| P/OCF | 13.7 | ||
| P/B | 5.29 | ||
| P/tB | 5.44 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)11.28
EY4.08%
EPS(NY)36.27
Fwd EY13.13%
FCF(TTM)4.13
FCFY1.5%
OCF(TTM)20.16
OCFY7.3%
SpS37.6
BVpS52.26
TBVpS50.82
PEG (NY)0.1
PEG (5Y)1.02
Graham Number115.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.85% | ||
| ROE | 20.25% | ||
| ROCE | 18.71% | ||
| ROIC | 14.22% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 16.95% | ||
| OM | 32.68% | ||
| PM (TTM) | 28.15% | ||
| GM | 45.31% | ||
| FCFM | 10.99% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 211.39% | ||
| Cap/Sales | 42.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.48% | ||
| Profit Quality | 39.06% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 9.01 |
F-Score7
WACC10.55%
ROIC/WACC1.35
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)181.3%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%167.04%
EPS Next Y257.63%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
EPS Next 5Y10.58%
Revenue 1Y (TTM)45.43%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%56.65%
Revenue Next Year85.19%
Revenue Next 2Y50.74%
Revenue Next 3Y32.3%
Revenue Next 5Y12.59%
EBIT growth 1Y216.87%
EBIT growth 3Y0.54%
EBIT growth 5Y26.38%
EBIT Next Year203.69%
EBIT Next 3Y54.92%
EBIT Next 5Y27.78%
FCF growth 1Y192.93%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y1025.04%
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 7 / 10 to MU.
What is the valuation status of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a valuation rating of 8 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Undervalued.
What is the profitability of MU stock?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 8 / 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 24.49 and the Price/Book (PB) ratio is 5.29.
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 4.41%.