MICRON TECHNOLOGY INC (1MU.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MU - US5951121038 - Common Stock
340.7 EUR
+7.45 (+2.24%)
Taking everything into account, 1MU scores 7 out of 10 in our fundamental rating. 1MU was compared to 68 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1MU has a great profitability rating, there are some minor concerns on its financial health. 1MU is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make 1MU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year 1MU was profitable.
- In the past year 1MU had a positive cash flow from operations.
- Of the past 5 years 1MU 4 years were profitable.
- Each year in the past 5 years 1MU had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1MU (13.85%) is better than 76.47% of its industry peers.
- The Return On Equity of 1MU (20.25%) is better than 67.65% of its industry peers.
- 1MU has a better Return On Invested Capital (14.22%) than 70.59% 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%, 1MU is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1MU has grown nicely.
- With an excellent Operating Margin value of 32.68%, 1MU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
- 1MU's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 45.31%, 1MU perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1MU 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
- 1MU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for 1MU has been increased compared to 1 year ago.
- Compared to 5 years ago, 1MU has more shares outstanding
- Compared to 1 year ago, 1MU has an improved debt to assets ratio.
2.2 Solvency
- 1MU has an Altman-Z score of 11.83. This indicates that 1MU is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 11.83, 1MU is doing good in the industry, outperforming 73.53% of the companies in the same industry.
- 1MU has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as 1MU would need 2.53 years to pay back of all of its debts.
- The Debt to FCF ratio of 1MU (2.53) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.19 indicates that 1MU is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, 1MU perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 11.83 |
ROIC/WACC1.33
WACC10.72%
2.3 Liquidity
- 1MU has a Current Ratio of 2.46. This indicates that 1MU is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of 1MU (2.46) is better than 64.71% of its industry peers.
- 1MU has a Quick Ratio of 1.78. This is a normal value and indicates that 1MU is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1MU (1.78) is better than 60.29% 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, 1MU shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.98% on average per year.
- 1MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.43%.
- 1MU 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
- Based on estimates for the next years, 1MU will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.31% on average per year.
- Based on estimates for the next years, 1MU will show a quite strong growth in Revenue. The Revenue will grow by 15.11% on average per year.
EPS Next Y257.63%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
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.
- 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
- 1MU is valuated quite expensively with a Price/Earnings ratio of 35.34.
- 1MU's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MU is cheaper than 64.71% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. 1MU is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 11.00, the valuation of 1MU can be described as reasonable.
- 1MU's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1MU is cheaper than 97.06% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.34 | ||
| Fwd PE | 11 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MU indicates a somewhat cheap valuation: 1MU is cheaper than 60.29% of the companies listed in the same industry.
- 1MU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1MU is more expensive than 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.48 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
- 1MU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of 1MU may justify a higher PE ratio.
- 1MU's earnings are expected to grow with 67.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)1.47
EPS Next 2Y109.16%
EPS Next 3Y67.67%
5. Dividend
5.1 Amount
- 1MU has a yearly dividend return of 0.14%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.72, 1MU is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
- The dividend of 1MU is nicely growing with an annual growth rate of 44.19%!
Dividend Growth(5Y)44.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MU pays out 4.41% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1MU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.41%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
MICRON TECHNOLOGY INC / 1MU.MI FAQ
What is the fundamental rating for 1MU stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1MU.MI.
What is the valuation status of MICRON TECHNOLOGY INC (1MU.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to MICRON TECHNOLOGY INC (1MU.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for MICRON TECHNOLOGY INC?
MICRON TECHNOLOGY INC (1MU.MI) has a profitability rating of 7 / 10.
What is the valuation of MICRON TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICRON TECHNOLOGY INC (1MU.MI) is 35.34 and the Price/Book (PB) ratio is 7.63.
Is the dividend of MICRON TECHNOLOGY INC sustainable?
The dividend rating of MICRON TECHNOLOGY INC (1MU.MI) is 3 / 10 and the dividend payout ratio is 4.41%.