389.09 USD
-10.56 (-2.64%)
389.23 USD
+0.14 (+0.04%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. MU is growing strongly while it is still valued neutral. This is a good combination! These ratings could make MU a good candidate 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.
- MU had positive earnings in 4 of the past 5 years.
- MU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MU has a better Return On Assets (13.85%) than 86.73% of its industry peers.
- With an excellent Return On Equity value of 20.25%, MU belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
- 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's Profit Margin of 28.15% is amongst the best of the industry. MU outperforms 85.84% 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 32.68%, MU belongs to the best of the industry, outperforming 91.15% of the companies in the same industry.
- MU's Operating Margin has improved in the last couple of years.
- MU has a Gross Margin (45.31%) which is comparable to the rest of the industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MU is creating some value.
- The number of shares outstanding for MU has been increased compared to 1 year ago.
- Compared to 5 years ago, MU has more shares outstanding
- The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 12.07 indicates that MU is not in any danger for bankruptcy at the moment.
- MU has a better Altman-Z score (12.07) than 72.57% of its industry peers.
- The Debt to FCF ratio of MU is 2.53, which is a good value as it means it would take MU, 2.53 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MU (2.53) is better than 65.49% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that MU is not too dependend on debt financing.
- MU has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 12.07 |
ROIC/WACC1.32
WACC10.81%
2.3 Liquidity
- MU has a Current Ratio of 2.46. This indicates that MU is financially healthy and has no problem in meeting 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.
- 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.
- Measured over the past years, MU shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.98% on average per year.
- The Revenue has grown by 45.43% in the past year. This is a very strong growth!
- The Revenue has been growing by 11.76% on average over the past years. This is quite good.
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.
- 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 34.49, which means the current valuation is very expensive for MU.
- Based on the Price/Earnings ratio, MU is valued a bit cheaper than 76.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, MU is valued a bit more expensive.
- A Price/Forward Earnings ratio of 8.60 indicates a reasonable valuation of MU.
- Based on the Price/Forward Earnings ratio, MU is valued cheaper than 99.11% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.49 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MU indicates a somewhat cheap valuation: MU is cheaper than 75.22% of the companies listed in the same industry.
- 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 | 94.12 | ||
| 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)1.44
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.
- Compared to an average industry Dividend Yield of 0.49, MU pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MU's dividend is way lower than the S&P500 average.
| 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.
- MU's earnings are growing slower than its dividend. 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%.