MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock
Overall MU gets a fundamental rating of 5 out of 10. We evaluated MU against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has only an average score on both its financial health and profitability. MU is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
Of the past 5 years MU 4 years were profitable.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.43%, MU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MU has a better Return On Equity (8.30%) than 61.11% of its industry peers.
With a decent Return On Invested Capital value of 4.45%, MU is doing good in the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 8.3% | ||
| ROIC | 4.45% |
ROA(3y)1.72%
ROA(5y)4.02%
ROE(3y)1.97%
ROE(5y)5.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MU has a better Profit Margin (13.34%) than 66.67% of its industry peers.
MU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.00%, MU is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
MU's Operating Margin has declined in the last couple of years.
MU's Gross Margin of 30.92% is on the low side compared to the rest of the industry. MU is outperformed by 68.52% of its industry peers.
MU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 13.34% | ||
| GM | 30.92% |
OM growth 3Y-44.62%
OM growth 5Y-33.31%
PM growth 3Y-47.29%
PM growth 5Y-35.13%
GM growth 3Y-16.06%
GM growth 5Y-13.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MU is destroying value.
The number of shares outstanding for MU has been increased compared to 1 year ago.
MU has more shares outstanding than it did 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 4.57. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
MU's Altman-Z score of 4.57 is in line compared to the rest of the industry. MU outperforms 54.63% of its industry peers.
MU has a debt to FCF ratio of 24.88. This is a negative value and a sign of low solvency as MU would need 24.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.88, MU is in line with its industry, outperforming 48.15% of the companies in the same industry.
MU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
MU has a worse Debt to Equity ratio (0.28) than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 24.88 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.31
WACC14.14%
2.3 Liquidity
A Current Ratio of 2.72 indicates that MU has no problem at all paying its short term obligations.
The Current ratio of MU (2.72) is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that MU should not have too much problems paying its short term obligations.
The Quick ratio of MU (1.75) is worse than 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 199.75%, which is quite impressive.
Measured over the past years, MU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.38% on average per year.
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 79.80%.
MU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
EPS 1Y (TTM)199.75%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%288.42%
Revenue 1Y (TTM)79.8%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
3.2 Future
MU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.17% yearly.
Based on estimates for the next years, MU will show a quite strong growth in Revenue. The Revenue will grow by 12.96% on average per year.
EPS Next Y610.91%
EPS Next 2Y224.86%
EPS Next 3Y106.49%
EPS Next 5Y54.17%
Revenue Next Year39.64%
Revenue Next 2Y32.22%
Revenue Next 3Y21.17%
Revenue Next 5Y12.96%
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 accelerating.
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
MU is valuated quite expensively with a Price/Earnings ratio of 26.37.
MU's Price/Earnings ratio is a bit cheaper when compared to the industry. MU is cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.94, MU is valued at the same level.
A Price/Forward Earnings ratio of 7.89 indicates a rather cheap valuation of MU.
Based on the Price/Forward Earnings ratio, MU is valued cheaply inside the industry as 99.07% 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 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 212.68 | ||
| EV/EBITDA | 10.04 |
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.
MU's earnings are expected to grow with 106.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y224.86%
EPS Next 3Y106.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, MU is not a good candidate for dividend investing.
MU's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 0.45, MU pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 72.66%!
MU has paid a dividend for at least 10 years, which is a reliable track record.
MU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
13.27% 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.
DP13.27%
EPS Next 2Y224.86%
EPS Next 3Y106.49%
MICRON TECHNOLOGY INC
NASDAQ:MU (1/17/2025, 8:16:28 PM)
After market: 105.75 0 (0%)105.75
+3.15 (+3.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change-0.24%
Ins Owners0.26%
Ins Owner Change7.07%
Market Cap117.82B
Analysts82.13
Price Target133.61 (26.35%)
Short Float %3.81%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP13.27%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.99%
Max EPS beat(2)0.66%
EPS beat(4)3
Avg EPS beat(4)70.84%
Min EPS beat(4)-0.99%
Max EPS beat(4)265.31%
EPS beat(8)7
Avg EPS beat(8)43.57%
EPS beat(12)10
Avg EPS beat(12)15%
EPS beat(16)13
Avg EPS beat(16)11.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-1.46%
Revenue beat(4)1
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)5.68%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.37%
PT rev (1m)-7.9%
PT rev (3m)-16.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)-8.1%
Revenue NY rev (3m)-7.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 7.89 | ||
| P/S | 4.05 | ||
| P/FCF | 212.68 | ||
| P/OCF | 11.38 | ||
| P/B | 2.52 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)4.01
EY3.79%
EPS(NY)13.4
Fwd EY12.67%
FCF(TTM)0.5
FCFY0.47%
OCF(TTM)9.29
OCFY8.78%
SpS26.11
BVpS42
TBVpS40.59
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 8.3% | ||
| ROCE | 6.99% | ||
| ROIC | 4.45% | ||
| ROICexc | 5.06% | ||
| ROICexgc | 5.21% | ||
| OM | 15% | ||
| PM (TTM) | 13.34% | ||
| GM | 30.92% | ||
| FCFM | 1.9% |
ROA(3y)1.72%
ROA(5y)4.02%
ROE(3y)1.97%
ROE(5y)5.23%
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
ROICexcg growth 3Y-49.51%
ROICexcg growth 5Y-37.89%
ROICexc growth 3Y-49.41%
ROICexc growth 5Y-37.69%
OM growth 3Y-44.62%
OM growth 5Y-33.31%
PM growth 3Y-47.29%
PM growth 5Y-35.13%
GM growth 3Y-16.06%
GM growth 5Y-13.34%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 24.88 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 124.08% | ||
| Cap/Sales | 33.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.43% | ||
| Profit Quality | 14.27% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 4.57 |
F-Score7
WACC14.14%
ROIC/WACC0.31
Cap/Depr(3y)125.44%
Cap/Depr(5y)136.66%
Cap/Sales(3y)40.67%
Cap/Sales(5y)39.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)199.75%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%288.42%
EPS Next Y610.91%
EPS Next 2Y224.86%
EPS Next 3Y106.49%
EPS Next 5Y54.17%
Revenue 1Y (TTM)79.8%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%84.28%
Revenue Next Year39.64%
Revenue Next 2Y32.22%
Revenue Next 3Y21.17%
Revenue Next 5Y12.96%
EBIT growth 1Y168.52%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year934.25%
EBIT Next 3Y143.56%
EBIT Next 5Y72.84%
FCF growth 1Y-40.75%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y-15.07%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%