425.36 USD
+15.12 (+3.69%)
MU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While MU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MU is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, MU could be worth investigating further for growth investing!.
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.
- MU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 13.85%, MU belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
- With an excellent Return On Equity value of 20.25%, MU belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 14.22%, MU belongs to the top 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
- The Profit Margin of MU (28.15%) is better than 85.84% of its industry peers.
- MU's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 32.68%, MU belongs to the best of the industry, outperforming 91.15% of the companies in the same industry.
- In the last couple of years the Operating Margin of MU has grown nicely.
- MU's Gross Margin of 45.31% is in line compared to the rest of the industry. MU outperforms 53.10% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MU is still creating some 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.
- Compared to 1 year ago, MU has an improved debt to assets ratio.
2.2 Solvency
- MU has an Altman-Z score of 12.33. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
- MU has a Altman-Z score of 12.33. This is in the better half of the industry: MU outperforms 75.22% of its industry peers.
- The Debt to FCF ratio of MU is 2.53, which is a good value as it means it would take MU, 2.53 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.53, MU is in the better half of the industry, outperforming 65.49% of the companies in the same industry.
- A Debt/Equity ratio of 0.19 indicates that MU is not too dependend on debt financing.
- The Debt to Equity ratio of MU (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 12.33 |
ROIC/WACC1.32
WACC10.8%
2.3 Liquidity
- MU has a Current Ratio of 2.46. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of MU (2.46) is comparable to the rest of the industry.
- MU has a Quick Ratio of 1.78. 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 of 1.78. This is in the lower half of the industry: MU underperforms 61.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
- MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.30%, which is quite impressive.
- MU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.98% yearly.
- Looking at the last year, MU shows a very strong growth in Revenue. 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 19.31% 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 15.11% yearly.
EPS Next Y313.37%
EPS Next 2Y133.56%
EPS Next 3Y71.64%
EPS Next 5Y19.31%
Revenue Next Year103.71%
Revenue Next 2Y60.77%
Revenue Next 3Y38.81%
Revenue Next 5Y15.11%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- A Price/Earnings ratio of 37.71 indicates a quite expensive valuation of MU.
- 76.11% of the companies in the same industry are more expensive than MU, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, MU is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 9.41, the valuation of MU can be described as very reasonable.
- 99.11% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
- MU is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.71 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MU is valued a bit cheaper than the industry average as 74.34% of the companies are valued more expensively.
- MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 102.9 | ||
| EV/EBITDA | 20.68 |
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.
- A more expensive valuation may be justified as MU's earnings are expected to grow with 71.64% in the coming years.
PEG (NY)0.12
PEG (5Y)1.57
EPS Next 2Y133.56%
EPS Next 3Y71.64%
5. Dividend
5.1 Amount
- MU has a yearly dividend return of 0.12%, which is pretty low.
- MU's Dividend Yield is a higher than the industry average which is at 0.49.
- Compared to an average S&P500 Dividend Yield of 1.82, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
5.2 History
- The dividend of MU is nicely growing with an annual growth rate of 44.19%!
- 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)44.19%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- MU pays out 4.41% 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.
DP4.41%
EPS Next 2Y133.56%
EPS Next 3Y71.64%
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.
Can you provide the valuation status for MICRON TECHNOLOGY INC?
ChartMill assigns a valuation rating of 6 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Fairly Valued.
Can you provide the profitability details for MICRON TECHNOLOGY INC?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for MU stock?
The Earnings per Share (EPS) of MICRON TECHNOLOGY INC (MU) is expected to grow by 313.37% in the next year.
Can you provide the dividend sustainability for MU stock?
The dividend rating of MICRON TECHNOLOGY INC (MU) is 5 / 10 and the dividend payout ratio is 4.41%.