MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
Overall MU gets a fundamental rating of 5 out of 10. We evaluated MU against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an average financial health and profitability rating. 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.
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
With a decent Return On Assets value of 7.94%, MU is doing good in the industry, outperforming 77.27% of the companies in the same industry.
MU has a better Return On Equity (12.27%) than 76.36% of its industry peers.
MU's Return On Invested Capital of 7.18% is fine compared to the rest of the industry. MU outperforms 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 12.27% | ||
| ROIC | 7.18% |
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
Looking at the Profit Margin, with a value of 18.41%, MU is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
MU's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.77%, MU belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
MU's Operating Margin has declined in the last couple of years.
The Gross Margin of MU (37.13%) is worse than 63.64% of its industry peers.
In the last couple of years the Gross Margin of MU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.77% | ||
| PM (TTM) | 18.41% | ||
| GM | 37.13% |
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.
MU has more shares outstanding than it did 5 years ago.
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.81 indicates that MU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.81, MU is in line with its industry, outperforming 60.00% of the companies in the same industry.
MU has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as MU would need 8.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.26, MU perfoms like the industry average, outperforming 48.18% of the companies in the same industry.
MU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
MU has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: MU underperforms 60.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.65
WACC11.1%
2.3 Liquidity
A Current Ratio of 2.75 indicates that MU has no problem at all paying its short term obligations.
MU has a Current ratio (2.75) which is in line with its industry peers.
MU has a Quick Ratio of 1.89. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.89, MU is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 757.14%, which is quite impressive.
Measured over the past years, MU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.38% on average per year.
Looking at the last year, MU shows a very strong growth in Revenue. The Revenue has grown by 58.22%.
The Revenue has been growing slightly by 1.42% on average over the past years.
EPS 1Y (TTM)757.14%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%208.06%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
3.2 Future
MU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.12% yearly.
Based on estimates for the next years, MU will show a quite strong growth in Revenue. The Revenue will grow by 13.70% on average per year.
EPS Next Y468.51%
EPS Next 2Y198.11%
EPS Next 3Y109.24%
EPS Next 5Y54.12%
Revenue Next Year41.78%
Revenue Next 2Y33.54%
Revenue Next 3Y22.43%
Revenue Next 5Y13.7%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MU is valuated rather expensively with a Price/Earnings ratio of 18.62.
Based on the Price/Earnings ratio, MU is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. MU is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.63, which indicates a very decent valuation of MU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MU indicates a rather cheap valuation: MU is cheaper than 94.55% of the companies listed in the same industry.
MU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
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 | 71.25 | ||
| EV/EBITDA | 8.86 |
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.
MU's earnings are expected to grow with 109.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y198.11%
EPS Next 3Y109.24%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 2.18, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.38, MU pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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.
MU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
8.37% of the earnings are spent on dividend by MU. This is a low number and sustainable payout ratio.
The dividend of MU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.37%
EPS Next 2Y198.11%
EPS Next 3Y109.24%
119.92
-2.37 (-1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.21%
Inst Owner Change-0.02%
Ins Owners0.22%
Ins Owner Change-9.86%
Market Cap134.02B
Analysts82.04
Price Target125.15 (4.36%)
Short Float %2.53%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP8.37%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.11%
Min EPS beat(2)6.39%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)5.8%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)40.5%
EPS beat(12)11
Avg EPS beat(12)16.21%
EPS beat(16)14
Avg EPS beat(16)12.73%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.03%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)3
Avg Revenue beat(16)-1.12%
PT rev (1m)1.56%
PT rev (3m)-2.76%
EPS NQ rev (1m)29.95%
EPS NQ rev (3m)27.35%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)10.08%
Revenue NQ rev (3m)9.59%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 10.63 | ||
| P/S | 3.96 | ||
| P/FCF | 71.25 | ||
| P/OCF | 8.82 | ||
| P/B | 2.64 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)6.44
EY5.37%
EPS(NY)11.29
Fwd EY9.41%
FCF(TTM)1.68
FCFY1.4%
OCF(TTM)13.6
OCFY11.34%
SpS30.26
BVpS45.41
TBVpS44
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 12.27% | ||
| ROCE | 11.28% | ||
| ROIC | 7.18% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 8.77% | ||
| OM | 22.77% | ||
| PM (TTM) | 18.41% | ||
| GM | 37.13% | ||
| FCFM | 5.56% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 162.65% | ||
| Cap/Sales | 39.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.66% | ||
| Profit Quality | 30.22% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.81 |
F-Score7
WACC11.1%
ROIC/WACC0.65
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)757.14%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%208.06%
EPS Next Y468.51%
EPS Next 2Y198.11%
EPS Next 3Y109.24%
EPS Next 5Y54.12%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
Revenue Next Year41.78%
Revenue Next 2Y33.54%
Revenue Next 3Y22.43%
Revenue Next 5Y13.7%
EBIT growth 1Y518.48%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year932.39%
EBIT Next 3Y141.38%
EBIT Next 5Y73.34%
FCF growth 1Y139.68%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y198.8%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%