399.65 USD
+2.07 (+0.52%)
399.26 USD
-0.39 (-0.1%)
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. MU has an excellent profitability rating, but there are some minor concerns on its financial health. MU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, MU could be worth investigating further for growth investing!.
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.
- Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
- MU has a Return On Assets of 13.85%. This is amongst the best in the industry. MU outperforms 86.73% of its industry peers.
- The Return On Equity of MU (20.25%) is better than 85.84% of its industry peers.
- MU has a better Return On Invested Capital (14.22%) than 87.61% of its industry peers.
| 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
- MU has a Profit Margin of 28.15%. This is amongst the best in the industry. MU outperforms 85.84% of its industry peers.
- MU's Profit Margin has improved in the last couple of years.
- MU has a Operating Margin of 32.68%. This is amongst the best in the industry. MU outperforms 91.15% of its industry peers.
- 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 12.07. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
- MU has a better Altman-Z score (12.07) than 72.57% of its industry peers.
- MU has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as MU would need 2.53 years to pay back of all of its debts.
- MU has a Debt to FCF ratio of 2.53. This is in the better half of the industry: MU outperforms 65.49% of its industry peers.
- 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 | 12.07 |
ROIC/WACC1.31
WACC10.82%
2.3 Liquidity
- A Current Ratio of 2.46 indicates that MU has no problem at all paying its short term obligations.
- With a Current ratio value of 2.46, MU perfoms like the industry average, outperforming 41.59% of the companies in the same 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's Quick ratio of 1.78 is on the low side compared to the rest of the industry. MU is outperformed by 61.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 181.30% over the past year.
- MU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.98% yearly.
- MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.43%.
- Measured over the past years, MU shows a quite strong growth in Revenue. The Revenue has been growing by 11.76% on average per year.
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
- Based on estimates for the next years, MU will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.31% on average per year.
- The Revenue is expected to grow by 15.11% on average over the next years. This is quite good.
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
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- The Price/Earnings ratio is 35.43, which means the current valuation is very expensive for MU.
- Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a somewhat cheap valuation: MU is cheaper than 76.11% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (27.21), we can say MU is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 8.84, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MU is valued a bit cheaper than the industry average as 75.22% 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 | 96.68 | ||
| EV/EBITDA | 20.15 |
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.
- MU's earnings are expected to grow with 71.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)1.48
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 0.50.
- With a Dividend Yield of 0.12, MU pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.12% |
5.2 History
- On average, the dividend of MU grows each year by 44.19%, 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)44.19%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 4.41% 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.
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%.