MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
158.02 USD
-0.8 (-0.5%)
Taking everything into account, MU scores 6 out of 10 in our fundamental rating. MU was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has only an average score on both its financial health and profitability. MU is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make MU suitable for growth investing!
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.
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
MU has a better Return On Assets (7.94%) than 78.57% of its industry peers.
With a decent Return On Equity value of 12.27%, MU is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of MU (7.18%) is better than 72.32% 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
With an excellent Profit Margin value of 18.41%, MU belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
MU's Profit Margin has declined in the last couple of years.
MU's Operating Margin of 22.77% is amongst the best of the industry. MU outperforms 83.04% of its industry peers.
In the last couple of years the Operating Margin of MU has declined.
MU has a worse Gross Margin (37.13%) than 62.50% of its industry peers.
MU's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MU is destroying 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.
MU has a better debt/assets ratio than last year.
2.2 Solvency
MU has an Altman-Z score of 5.70. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MU (5.70) is better than 63.39% of its industry peers.
The Debt to FCF ratio of MU is 8.26, which is on the high side as it means it would take MU, 8.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.26, MU perfoms like the industry average, outperforming 49.11% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that MU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, MU is not doing good in the industry: 61.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.65
WACC11.04%
2.3 Liquidity
A Current Ratio of 2.75 indicates that MU has no problem at all paying its short term obligations.
With a Current ratio value of 2.75, MU perfoms like the industry average, outperforming 49.11% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that MU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.89, MU is in line with its industry, outperforming 44.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 757.14% over the past year.
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.
The Revenue has grown by 58.22% in the past year. This is a very strong growth!
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
Based on estimates for the next years, MU will show a very strong growth in Earnings Per Share. The EPS will grow by 54.74% on average per year.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.00% yearly.
EPS Next Y550.56%
EPS Next 2Y222.69%
EPS Next 3Y122.67%
EPS Next 5Y54.74%
Revenue Next Year48.07%
Revenue Next 2Y39.98%
Revenue Next 3Y27.76%
Revenue Next 5Y15%
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
With a Price/Earnings ratio of 24.54, MU is valued on the expensive side.
76.79% 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 27.20, MU is valued at the same level.
With a Price/Forward Earnings ratio of 11.95, the valuation of MU can be described as very reasonable.
96.43% 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 valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
MU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MU is cheaper than 89.29% of the companies in the same industry.
MU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 94.02 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
The 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 122.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y222.69%
EPS Next 3Y122.67%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.31%, which is pretty low.
Compared to an average industry Dividend Yield of 2.31, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.31, MU pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 72.66%!
MU has been paying a dividend for at least 10 years, so it has 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 2Y222.69%
EPS Next 3Y122.67%
NASDAQ:MU (9/17/2025, 9:40:10 AM)
158.02
-0.8 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change-0.16%
Ins Owners0.19%
Ins Owner Change-6.21%
Market Cap176.84B
Analysts80.77
Price Target148.72 (-5.89%)
Short Float %2.89%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
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)1.41%
PT rev (3m)21.42%
EPS NQ rev (1m)3.99%
EPS NQ rev (3m)47.94%
EPS NY rev (1m)3.43%
EPS NY rev (3m)14.81%
Revenue NQ rev (1m)1.52%
Revenue NQ rev (3m)14.95%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 11.95 | ||
| P/S | 5.23 | ||
| P/FCF | 94.02 | ||
| P/OCF | 11.63 | ||
| P/B | 3.48 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)6.44
EY4.08%
EPS(NY)13.22
Fwd EY8.37%
FCF(TTM)1.68
FCFY1.06%
OCF(TTM)13.58
OCFY8.6%
SpS30.21
BVpS45.35
TBVpS43.94
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 | 5.7 |
F-Score7
WACC11.04%
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 Y550.56%
EPS Next 2Y222.69%
EPS Next 3Y122.67%
EPS Next 5Y54.74%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
Revenue Next Year48.07%
Revenue Next 2Y39.98%
Revenue Next 3Y27.76%
Revenue Next 5Y15%
EBIT growth 1Y518.48%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year973.3%
EBIT Next 3Y153.51%
EBIT Next 5Y75.7%
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%