MICRON TECHNOLOGY INC (MU)
US5951121038 - Common Stock
Taking everything into account, MU scores 5 out of 10 in our fundamental rating. MU was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. MU scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. An interesting combination arises when we look at growth and value: MU is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year MU was profitable.
In the past year MU had a positive cash flow from operations.
MU had positive earnings in 4 of the past 5 years.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
MU has a Return On Assets (1.12%) which is comparable to the rest of the industry.
MU has a Return On Equity (1.72%) which is comparable to the rest of the industry.
MU's Return On Invested Capital of 1.12% is in line compared to the rest of the industry. MU outperforms 50.00% of its industry peers.
| 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 53.70% of the companies in the same industry.
In the last couple of years the Profit Margin of MU has declined.
With a Operating Margin value of 4.23%, MU perfoms like the industry average, outperforming 54.63% 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 22.35% is on the low side compared to the rest of the industry. MU is outperformed by 75.00% of its industry peers.
MU's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MU is destroying value.
MU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MU has more shares outstanding
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.90 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a Altman-Z score (3.90) which is comparable to the rest of the industry.
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.
With a Debt to FCF ratio value of 110.72, MU perfoms like the industry average, outperforming 49.07% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that MU is not too dependend on debt financing.
The Debt to Equity ratio of MU (0.29) is worse than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 110.72 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.08
WACC14.44%
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.
MU has a Current ratio (2.64) which is in line with its industry peers.
A Quick Ratio of 1.68 indicates that MU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, MU is doing worse than 63.89% of the companies in the same industry.
| 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 199.75% 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%.
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)61.59%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
3.2 Future
The Earnings Per Share is expected to grow by 55.19% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.00% on average over the next years. This is quite good.
EPS Next Y610.91%
EPS Next 2Y224.86%
EPS Next 3Y106.49%
EPS Next 5Y55.19%
Revenue Next Year51.94%
Revenue Next 2Y35.55%
Revenue Next 3Y22.13%
Revenue Next 5Y13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.63 indicates a rather expensive valuation of MU.
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.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (27.42), we can say MU is valued slightly cheaper.
A Price/Forward Earnings ratio of 6.47 indicates a rather cheap valuation of MU.
99.07% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.56, MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 6.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 86.11% of the companies in the same industry.
MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 798.7 | ||
| EV/EBITDA | 11.45 |
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 106.49% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y224.86%
EPS Next 3Y106.49%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.44%, which is pretty low.
MU's Dividend Yield is a higher than the industry average which is at 2.21.
Compared to an average S&P500 Dividend Yield of 2.24, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
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 2Y224.86%
EPS Next 3Y106.49%
MICRON TECHNOLOGY INC
NASDAQ:MU (12/20/2024, 11:06:09 AM)
86.75
-0.34 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.29%
Inst Owner Change-1.98%
Ins Owners0.88%
Ins Owner Change7.08%
Market Cap96.64B
Analysts82.98
Price Target145.07 (67.23%)
Short Float %3.05%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)72.66%
DP65.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.52%
Min EPS beat(2)0.66%
Max EPS beat(2)18.38%
EPS beat(4)4
Avg EPS beat(4)72.38%
Min EPS beat(4)0.66%
Max EPS beat(4)265.31%
EPS beat(8)7
Avg EPS beat(8)20.45%
EPS beat(12)10
Avg EPS beat(12)15.04%
EPS beat(16)14
Avg EPS beat(16)12.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.86%
Revenue beat(4)1
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)5.68%
Revenue beat(8)1
Avg Revenue beat(8)-0.63%
Revenue beat(12)2
Avg Revenue beat(12)-1.12%
Revenue beat(16)2
Avg Revenue beat(16)-1.31%
PT rev (1m)0.14%
PT rev (3m)-17.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 6.47 | ||
| P/S | 3.85 | ||
| P/FCF | 798.7 | ||
| P/OCF | 11.36 | ||
| P/B | 2.14 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.45 |
EPS(TTM)4.01
EY4.62%
EPS(NY)13.4
Fwd EY15.45%
FCF(TTM)0.11
FCFY0.13%
OCF(TTM)7.64
OCFY8.8%
SpS22.54
BVpS40.51
TBVpS39.11
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 1.72% | ||
| ROCE | 1.77% | ||
| ROIC | 1.12% | ||
| ROICexc | 1.3% | ||
| ROICexgc | 1.34% | ||
| OM | 4.23% | ||
| PM (TTM) | 3.1% | ||
| GM | 22.35% | ||
| FCFM | 0.48% |
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-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 110.72 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 107.79% | ||
| Cap/Sales | 33.4% | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | 96.21% | ||
| Profit Quality | 15.55% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 3.9 |
F-Score8
WACC14.44%
ROIC/WACC0.08
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 Y610.91%
EPS Next 2Y224.86%
EPS Next 3Y106.49%
EPS Next 5Y55.19%
Revenue 1Y (TTM)61.59%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
Revenue Next Year51.94%
Revenue Next 2Y35.55%
Revenue Next 3Y22.13%
Revenue Next 5Y13%
EBIT growth 1Y119.53%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year1074.08%
EBIT Next 3Y142.08%
EBIT Next 5Y73.19%
FCF growth 1Y101.98%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y445.67%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%