MICRON TECHNOLOGY INC (NASDAQ:MU) - A Strong Growth Stock with Reasonable Valuation

MICRON TECHNOLOGY INC (NASDAQ:MU) was identified as an affordable growth stock by our screener. The company combines solid growth prospects with a reasonable valuation, while maintaining decent financial health and profitability. Below, we examine why MU fits the criteria for investors seeking growth at a reasonable price.

Growth Prospects

MU demonstrates strong growth potential, earning a Growth Rating of 7/10. Key highlights include:

• Earnings Per Share (EPS) surged by 757.14% in the past year, reflecting strong recent performance.
• Revenue grew by 58.22% over the same period, indicating robust demand for its memory and storage solutions.
• Analysts expect EPS to grow by 54.12% annually in the coming years, supported by advancements in AI and data center markets.

Valuation

With a Valuation Rating of 6/10, MU appears reasonably priced:

• The forward P/E ratio of 11.05 is below both the industry average (30.58) and the S&P 500 (21.49).
• Its Enterprise Value to EBITDA ratio is cheaper than 88% of its semiconductor peers.
• Despite a trailing P/E of 19.37, the company’s growth trajectory justifies its valuation.

Financial Health & Profitability

MU maintains a balanced financial profile:

• Health Rating: 5/10 – The company has manageable debt (Debt/Equity of 0.30) and a solid Altman-Z score (4.87), though its Debt-to-FCF ratio is elevated.
• Profitability Rating: 5/10 – Operating margins (22.77%) outperform 82.73% of industry peers, though gross margins (37.13%) are below average.

For a deeper analysis, review the full fundamental report on MU.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.