MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
219.02 USD
+12.31 (+5.96%)
219.538 USD
+0.52 (+0.24%)
We assign a fundamental rating of 6 out of 10 to MU. 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make MU a good candidate for 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.
MU had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
MU has a Return On Assets of 10.31%. This is amongst the best in the industry. MU outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 15.76%, MU belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
MU's Return On Invested Capital of 10.51% is amongst the best of the industry. MU outperforms 80.36% 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
MU's Profit Margin of 22.84% is amongst the best of the industry. MU outperforms 84.82% of its industry peers.
In the last couple of years the Profit Margin of MU has grown nicely.
MU has a Operating Margin of 26.39%. This is amongst the best in the industry. MU outperforms 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 | 26.39% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% |
OM growth 3Y-5.97%
OM growth 5Y12.95%
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.
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.
The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
MU has an Altman-Z score of 7.07. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.07, MU is in the better half of the industry, outperforming 63.39% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.74, MU is in line with its industry, outperforming 49.11% of the companies in the same industry.
MU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MU has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 7.07 |
ROIC/WACC0.92
WACC11.48%
2.3 Liquidity
A Current Ratio of 2.52 indicates that MU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, MU is in line with its industry, outperforming 42.86% 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.
MU's Quick ratio of 1.79 is on the low side compared to the rest of the industry. MU is outperformed by 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 552.76% over the past year.
MU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.98% yearly.
The Revenue has grown by 48.85% in the past year. This is a very strong growth!
The Revenue has been growing by 11.76% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 10.58% on average over the next years. This is quite good.
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 Y105.86%
EPS Next 2Y51.62%
EPS Next 3Y32.94%
EPS Next 5Y10.58%
Revenue Next Year45.44%
Revenue Next 2Y28.11%
Revenue Next 3Y19.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.42, which means the current valuation is very expensive for MU.
Based on the Price/Earnings ratio, MU is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (26.89), we can say MU is valued inline with the index average.
MU is valuated correctly with a Price/Forward Earnings ratio of 12.83.
97.32% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
MU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
84.82% of the companies in the same industry are more expensive than MU, based on the Enterprise Value to EBITDA ratio.
MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 147.39 | ||
| EV/EBITDA | 13.69 |
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.
The decent profitability rating of MU may justify a higher PE ratio.
A more expensive valuation may be justified as MU's earnings are expected to grow with 32.94% in the coming years.
PEG (NY)0.25
PEG (5Y)1.1
EPS Next 2Y51.62%
EPS Next 3Y32.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, MU is not a good candidate for dividend investing.
MU's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.31, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 44.07%!
MU has paid a dividend for at least 10 years, which is a reliable track record.
MU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)44.07%
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 2Y51.62%
EPS Next 3Y32.94%
219.02
+12.31 (+5.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.1%
Ins Owners0.19%
Ins Owner Change2.97%
Market Cap245.84B
Revenue(TTM)37.38B
Net Income(TTM)8.54B
Analysts81.51
Price Target177.22 (-19.09%)
Short Float %1.98%
Short Ratio0.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.47
Dividend Growth(5Y)44.07%
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)19.17%
PT rev (3m)20.78%
EPS NQ rev (1m)24.6%
EPS NQ rev (3m)34.22%
EPS NY rev (1m)25.96%
EPS NY rev (3m)35.58%
Revenue NQ rev (1m)5.81%
Revenue NQ rev (3m)8.74%
Revenue NY rev (1m)9.95%
Revenue NY rev (3m)12.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 12.83 | ||
| P/S | 6.58 | ||
| P/FCF | 147.39 | ||
| P/OCF | 14.03 | ||
| P/B | 4.54 | ||
| P/tB | 4.68 | ||
| EV/EBITDA | 13.69 |
EPS(TTM)8.29
EY3.79%
EPS(NY)17.07
Fwd EY7.79%
FCF(TTM)1.49
FCFY0.68%
OCF(TTM)15.61
OCFY7.13%
SpS33.3
BVpS48.26
TBVpS46.83
PEG (NY)0.25
PEG (5Y)1.1
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 | 26.39% | ||
| 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-6.71%
ROICexgc growth 5Y15.03%
ROICexc growth 3Y-6.48%
ROICexc growth 5Y15.36%
OM growth 3Y-5.97%
OM growth 5Y12.95%
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 | 250 | ||
| Cash Conversion | 96.2% | ||
| Profit Quality | 19.53% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 7.07 |
F-Score7
WACC11.48%
ROIC/WACC0.92
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 Y105.86%
EPS Next 2Y51.62%
EPS Next 3Y32.94%
EPS Next 5Y10.58%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year45.44%
Revenue Next 2Y28.11%
Revenue Next 3Y19.37%
Revenue Next 5Y10.14%
EBIT growth 1Y828.91%
EBIT growth 3Y0.34%
EBIT growth 5Y26.24%
EBIT Next Year157.12%
EBIT Next 3Y48.54%
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 26.42 and the Price/Book (PB) ratio is 4.54.
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%.