435.79 USD
+0.51 (+0.12%)
451.6 USD
+15.81 (+3.63%)
Taking everything into account, MU scores 7 out of 10 in our fundamental rating. MU was compared to 113 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! This makes MU very considerable 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.
- In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
- MU has a better Return On Assets (13.85%) than 86.73% of its industry peers.
- The Return On Equity of MU (20.25%) is better than 85.84% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.22%, MU belongs to the top of the industry, outperforming 87.61% of the companies in the same industry.
| 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
- With an excellent Profit Margin value of 28.15%, MU belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
- In the last couple of years the Profit Margin of MU has grown nicely.
- The Operating Margin of MU (32.68%) is better than 91.15% of its industry peers.
- MU's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 45.31%, MU perfoms like the industry average, outperforming 53.10% of the companies in the same industry.
- In the last couple of years the Gross Margin of MU has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MU is creating some value.
- MU has more shares outstanding than it did 1 year ago.
- MU has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 12.96 indicates that MU is not in any danger for bankruptcy at the moment.
- MU has a better Altman-Z score (12.96) than 76.11% 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.
- MU has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- MU has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: MU outperforms 47.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 12.96 |
ROIC/WACC1.31
WACC10.85%
2.3 Liquidity
- A Current Ratio of 2.46 indicates that MU has no problem at all paying its short term obligations.
- MU has a Current ratio (2.46) which is in line with its industry peers.
- A Quick Ratio of 1.78 indicates that MU should not have too much problems paying its short term obligations.
- MU has a worse Quick ratio (1.78) than 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.
- The Earnings Per Share has been growing by 23.98% on average over the past years. This is a very strong growth
- The Revenue has grown by 45.43% 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)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
- The Earnings Per Share is expected to grow by 19.31% 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 15.11% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 38.63, the valuation of MU can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a somewhat cheap valuation: MU is cheaper than 75.22% of the companies listed in the same industry.
- MU is valuated rather expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.64, the valuation of MU can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MU is valued cheaply inside the industry as 99.11% of the companies are valued more expensively.
- MU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.63 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
- MU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MU is cheaper than 73.45% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 105.42 | ||
| EV/EBITDA | 21.94 |
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)0.12
PEG (5Y)1.61
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 0.49.
- With a Dividend Yield of 0.12, MU pays less dividend than the S&P500 average, which is at 1.82.
| 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
- MU pays out 4.41% of its income as dividend. This is a 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%.