MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
MU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
MU's Return On Assets of 5.43% is fine compared to the rest of the industry. MU outperforms 66.67% of its industry peers.
The Return On Equity of MU (8.30%) is better than 62.96% of its industry peers.
MU's Return On Invested Capital of 4.45% is fine compared to the rest of the industry. MU outperforms 63.89% 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
MU has a better Profit Margin (13.34%) than 70.37% of its industry peers.
In the last couple of years the Profit Margin of MU has declined.
Looking at the Operating Margin, with a value of 15.00%, MU is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has declined.
MU's Gross Margin of 30.92% is on the low side compared to the rest of the industry. MU is outperformed by 68.52% of its industry peers.
In the last couple of years the Gross Margin of MU has declined.
| 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
MU 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, MU has more shares outstanding
Compared to 5 years ago, MU has more shares outstanding
The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.50 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a Altman-Z score (4.50) which is comparable to the rest of the industry.
MU has a debt to FCF ratio of 24.88. This is a negative value and a sign of low solvency as MU would need 24.88 years to pay back of all of its debts.
MU has a Debt to FCF ratio (24.88) which is comparable to the rest of the industry.
MU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
MU's Debt to Equity ratio of 0.28 is on the low side compared to the rest of the industry. MU is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 24.88 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.39
WACC11.43%
2.3 Liquidity
A Current Ratio of 2.72 indicates that MU has no problem at all paying its short term obligations.
MU has a Current ratio (2.72) which is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that MU should not have too much problems paying its short term obligations.
MU has a worse Quick ratio (1.75) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 199.75%, which is quite impressive.
MU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.38% yearly.
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 79.80%.
MU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
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
MU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.17% yearly.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.96% yearly.
EPS Next Y460.09%
EPS Next 2Y197.19%
EPS Next 3Y109.25%
EPS Next 5Y54.17%
Revenue Next Year39.56%
Revenue Next 2Y32.23%
Revenue Next 3Y21.38%
Revenue Next 5Y12.96%
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 25.70, the valuation of MU can be described as expensive.
MU's Price/Earnings ratio is a bit cheaper when compared to the industry. MU is cheaper than 75.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.30. MU is around the same levels.
Based on the Price/Forward Earnings ratio of 9.19, the valuation of MU can be described as reasonable.
99.07% 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 rather cheap valuation when compared to the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 87.04% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 207.27 | ||
| EV/EBITDA | 9.81 |
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.
A more expensive valuation may be justified as MU's earnings are expected to grow with 109.25% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y197.19%
EPS Next 3Y109.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, MU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.34, MU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 72.66%!
MU has paid a dividend for at least 10 years, which is 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
13.27% 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.
DP13.27%
EPS Next 2Y197.19%
EPS Next 3Y109.25%
NASDAQ:MU (2/21/2025, 9:57:03 AM)
103.06
-0.12 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change3.34%
Ins Owners0.26%
Ins Owner Change3.55%
Market Cap114.83B
Analysts82.13
Price Target130.79 (26.91%)
Short Float %3.45%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP13.27%
Div Incr Years2
Div Non Decr Years2
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)-2.11%
PT rev (3m)-9.72%
EPS NQ rev (1m)-26.59%
EPS NQ rev (3m)-30.36%
EPS NY rev (1m)-21.21%
EPS NY rev (3m)-22.42%
Revenue NQ rev (1m)-12.7%
Revenue NQ rev (3m)-11.9%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-8.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 9.19 | ||
| P/S | 3.95 | ||
| P/FCF | 207.27 | ||
| P/OCF | 11.09 | ||
| P/B | 2.45 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)4.01
EY3.89%
EPS(NY)11.22
Fwd EY10.88%
FCF(TTM)0.5
FCFY0.48%
OCF(TTM)9.29
OCFY9.01%
SpS26.11
BVpS42
TBVpS40.59
PEG (NY)0.06
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 | 4.5 |
F-Score7
WACC11.43%
ROIC/WACC0.39
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 Y460.09%
EPS Next 2Y197.19%
EPS Next 3Y109.25%
EPS Next 5Y54.17%
Revenue 1Y (TTM)79.8%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
Revenue Next Year39.56%
Revenue Next 2Y32.23%
Revenue Next 3Y21.38%
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%