MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
219.02 USD
+12.31 (+5.96%)
219.538 USD
+0.52 (+0.24%)
Overall MU gets a fundamental rating of 6 out of 10. We evaluated MU against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MU scores excellent on profitability, but there are some minor concerns on its financial health. MU is not priced too expensively while it is growing strongly. 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.
Of the past 5 years MU 4 years were profitable.
Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.31%, MU belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
MU has a Return On Equity of 15.76%. This is amongst the best in the industry. MU outperforms 81.25% of its industry peers.
MU has a better Return On Invested Capital (10.51%) than 80.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROIC | 10.51% |
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
The Profit Margin of MU (22.84%) is better than 84.82% of its industry peers.
In the last couple of years the Profit Margin of MU has grown nicely.
With an excellent Operating Margin value of 26.39%, MU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has grown nicely.
Looking at the Gross Margin, with a value of 39.79%, MU is doing worse than 60.71% of the companies in the same industry.
MU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.39% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% |
OM growth 3Y-5.97%
OM growth 5Y12.95%
PM growth 3Y-6.83%
PM growth 5Y12.75%
GM growth 3Y-4.15%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
MU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, MU has an improved debt to assets ratio.
2.2 Solvency
MU has an Altman-Z score of 6.78. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.78, MU is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of MU is 8.74, which is on the high side as it means it would take MU, 8.74 years of fcf income to pay off all of its debts.
MU's Debt to FCF ratio of 8.74 is in line compared to the rest of the industry. MU outperforms 49.11% of its industry peers.
MU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MU (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 6.78 |
ROIC/WACC0.92
WACC11.48%
2.3 Liquidity
MU has a Current Ratio of 2.52. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MU (2.52) is comparable to the rest of the industry.
MU has a Quick Ratio of 1.79. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.79, MU is not doing good in the industry: 61.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 552.76% 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.
The Revenue has grown by 48.85% in the past year. This is a very strong growth!
MU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.76% yearly.
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
3.2 Future
The Earnings Per Share is expected to grow by 10.58% on average over the next years. This is quite good.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.14% yearly.
EPS Next Y63.43%
EPS Next 2Y33.29%
EPS Next 3Y26.51%
EPS Next 5Y10.58%
Revenue Next Year42.92%
Revenue Next 2Y25.2%
Revenue Next 3Y15.59%
Revenue Next 5Y10.14%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.42, the valuation of MU can be described as expensive.
Based on the Price/Earnings ratio, MU is valued cheaper than 81.25% of the companies in the same industry.
MU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
With a Price/Forward Earnings ratio of 16.17, MU is valued correctly.
91.96% 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 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 87.50% 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 | 147.39 | ||
| EV/EBITDA | 12.93 |
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 decent profitability rating of MU may justify a higher PE ratio.
A more expensive valuation may be justified as MU's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)0.42
PEG (5Y)1.1
EPS Next 2Y33.29%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, MU is not a good candidate for dividend investing.
MU's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.32, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
On average, the dividend of MU grows each year by 44.07%, which is quite nice.
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)44.07%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
6.11% of the earnings are spent on dividend by MU. This is a low number and sustainable payout ratio.
MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP6.11%
EPS Next 2Y33.29%
EPS Next 3Y26.51%
219.02
+12.31 (+5.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.17%
Ins Owners0.19%
Ins Owner Change1.54%
Market Cap245.84B
Revenue(TTM)37.38B
Net Income(TTM)8.54B
Analysts81.51
Price Target177.22 (-19.09%)
Short Float %1.98%
Short Ratio0.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.47
Dividend Growth(5Y)44.07%
DP6.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.34%
Min EPS beat(2)2.85%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)6.34%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)39.36%
EPS beat(12)11
Avg EPS beat(12)15.75%
EPS beat(16)14
Avg EPS beat(16)12.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)19.17%
PT rev (3m)41.61%
EPS NQ rev (1m)23.87%
EPS NQ rev (3m)33.44%
EPS NY rev (1m)0%
EPS NY rev (3m)7.64%
Revenue NQ rev (1m)5.48%
Revenue NQ rev (3m)8.4%
Revenue NY rev (1m)8.05%
Revenue NY rev (3m)10.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 16.17 | ||
| P/S | 6.58 | ||
| P/FCF | 147.39 | ||
| P/OCF | 14.03 | ||
| P/B | 4.54 | ||
| P/tB | 4.68 | ||
| EV/EBITDA | 12.93 |
EPS(TTM)8.29
EY3.79%
EPS(NY)13.55
Fwd EY6.19%
FCF(TTM)1.49
FCFY0.68%
OCF(TTM)15.61
OCFY7.13%
SpS33.3
BVpS48.26
TBVpS46.83
PEG (NY)0.42
PEG (5Y)1.1
Graham Number94.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROCE | 13.83% | ||
| ROIC | 10.51% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 12.61% | ||
| OM | 26.39% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% | ||
| FCFM | 4.46% |
ROA(3y)0.79%
ROA(5y)5.08%
ROE(3y)1.42%
ROE(5y)7%
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
ROICexgc growth 3Y-6.71%
ROICexgc growth 5Y15.03%
ROICexc growth 3Y-6.48%
ROICexc growth 5Y15.36%
OM growth 3Y-5.97%
OM growth 5Y12.95%
PM growth 3Y-6.83%
PM growth 5Y12.75%
GM growth 3Y-4.15%
GM growth 5Y5.42%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 189.86% | ||
| Cap/Sales | 42.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.2% | ||
| Profit Quality | 19.53% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 6.78 |
F-Score7
WACC11.48%
ROIC/WACC0.92
Cap/Depr(3y)132.21%
Cap/Depr(5y)145.52%
Cap/Sales(3y)41.74%
Cap/Sales(5y)40.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
EPS Next Y63.43%
EPS Next 2Y33.29%
EPS Next 3Y26.51%
EPS Next 5Y10.58%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year42.92%
Revenue Next 2Y25.2%
Revenue Next 3Y15.59%
Revenue Next 5Y10.14%
EBIT growth 1Y828.91%
EBIT growth 3Y0.34%
EBIT growth 5Y26.24%
EBIT Next Year157.12%
EBIT Next 3Y48.54%
EBIT Next 5Y27.78%
FCF growth 1Y1278.51%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y106.01%
OCF growth 3Y4.9%
OCF growth 5Y16.11%
MICRON TECHNOLOGY INC / MU FAQ
What is the ChartMill fundamental rating of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MU.
What is the valuation status of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a valuation rating of 6 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Fairly Valued.
What is the profitability of MU stock?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 7 / 10.
What is the valuation of MICRON TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICRON TECHNOLOGY INC (MU) is 26.42 and the Price/Book (PB) ratio is 4.54.
Is the dividend of MICRON TECHNOLOGY INC sustainable?
The dividend rating of MICRON TECHNOLOGY INC (MU) is 5 / 10 and the dividend payout ratio is 6.11%.