MICRON TECHNOLOGY INC (MU)
US5951121038 - Common Stock
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. The financial health of MU is average, but there are quite some concerns on its profitability. MU is growing strongly while it is still valued neutral. This is a good 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.
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
The Return On Assets of MU (1.12%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.72%, MU is in line with its industry, outperforming 47.22% of the companies in the same industry.
With a Return On Invested Capital value of 1.12%, MU perfoms like the industry average, outperforming 49.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 1.72% | ||
| ROIC | 1.12% |
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
With a Profit Margin value of 3.10%, MU perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
MU's Profit Margin has declined in the last couple of years.
MU's Operating Margin of 4.23% is in line compared to the rest of the industry. MU outperforms 53.70% of its industry peers.
In the last couple of years the Operating Margin of MU has declined.
The Gross Margin of MU (22.35%) is worse than 76.85% of its industry peers.
In the last couple of years the Gross Margin of MU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.23% | ||
| PM (TTM) | 3.1% | ||
| GM | 22.35% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MU is destroying value.
MU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MU has been increased compared to 5 years ago.
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.14 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a Altman-Z score (4.14) which is in line with its industry peers.
MU has a debt to FCF ratio of 110.72. This is a negative value and a sign of low solvency as MU would need 110.72 years to pay back of all of its debts.
MU's Debt to FCF ratio of 110.72 is in line compared to the rest of the industry. MU outperforms 48.15% of its industry peers.
MU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
MU has a worse Debt to Equity ratio (0.29) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 110.72 | ||
| Altman-Z | 4.14 |
ROIC/WACC0.08
WACC14.03%
2.3 Liquidity
MU has a Current Ratio of 2.64. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.64, MU is in line with its industry, outperforming 47.22% of the companies in the same industry.
MU has a Quick Ratio of 1.68. 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 1.68. This is in the lower half of the industry: MU underperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 140.84% over the past year.
MU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.38% yearly.
Looking at the last year, MU shows a very strong growth in Revenue. The Revenue has grown by 61.59%.
Measured over the past years, MU shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)140.84%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%210.28%
Revenue 1Y (TTM)61.59%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%93.27%
3.2 Future
MU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.73% yearly.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.07% yearly.
EPS Next Y621.96%
EPS Next 2Y223.13%
EPS Next 3Y115.86%
EPS Next 5Y60.73%
Revenue Next Year52.61%
Revenue Next 2Y35.13%
Revenue Next 3Y22.17%
Revenue Next 5Y9.07%
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 76.78, the valuation of MU can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (28.65), we can say MU is valued expensively.
Based on the Price/Forward Earnings ratio of 10.63, the valuation of MU can be described as reasonable.
96.30% 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 23.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.78 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
80.56% of the companies in the same industry are more expensive than MU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 893.5 | ||
| EV/EBITDA | 12.56 |
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 115.86% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y223.13%
EPS Next 3Y115.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, MU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.37, MU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
On average, the dividend of MU grows each year by 72.66%, which is quite nice.
MU has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MU decreased in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MU pays out 65.94% of its income as dividend. This is not a sustainable payout ratio.
MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.94%
EPS Next 2Y223.13%
EPS Next 3Y115.86%
MICRON TECHNOLOGY INC
NASDAQ:MU (11/18/2024, 8:00:01 PM)
After market: 97.6158 +0.11 (+0.11%)97.51
+1.17 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap108.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.78 | ||
| Fwd PE | 10.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 1.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.23% | ||
| PM (TTM) | 3.1% | ||
| GM | 22.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)140.84%
EPS 3Y-40.6%
EPS 5Y
EPS Q2Q%
EPS Next Y621.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)61.59%
Revenue growth 3Y-3.22%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y