397.58 USD
+8.47 (+2.18%)
394.29 USD
-3.29 (-0.83%)
We assign a fundamental rating of 7 out of 10 to MU. MU was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While MU has a great profitability rating, 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! This makes MU very considerable 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.
- 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
- Looking at the Profit Margin, with a value of 28.15%, MU belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
- MU's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 32.68%, MU belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
- In the last couple of years the Operating Margin of MU has grown nicely.
- The Gross Margin of MU (45.31%) is comparable to the rest of the 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.
- 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
- An Altman-Z score of 12.02 indicates that MU is not in any danger for bankruptcy at the moment.
- MU's Altman-Z score of 12.02 is fine compared to the rest of the industry. MU outperforms 73.45% 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.
- MU's Debt to Equity ratio of 0.19 is in line compared 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 | 12.02 |
ROIC/WACC1.33
WACC10.73%
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.
- 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.
- Looking at the Quick ratio, with a value of 1.78, MU is doing worse than 61.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
- MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.30%, which is quite impressive.
- 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.
- MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.43%.
- 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 Year102.52%
Revenue Next 2Y59.53%
Revenue Next 3Y38.29%
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 35.25, which means the current valuation is very expensive for MU.
- 77.88% 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 27.32, MU is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 8.79, the valuation of MU can be described as reasonable.
- 99.11% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
- MU is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.25 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
- MU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MU is cheaper than 76.99% 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 | 96.18 | ||
| EV/EBITDA | 20.05 |
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)1.47
EPS Next 2Y133.56%
EPS Next 3Y71.64%
5. Dividend
5.1 Amount
- MU has a yearly dividend return of 0.14%, which is pretty low.
- MU's Dividend Yield is a higher than the industry average which is at 0.51.
- With a Dividend Yield of 0.14, MU pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
- The dividend of MU is nicely growing with an annual growth rate of 44.19%!
- 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)44.19%
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 7 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Undervalued.
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%.