MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
167.32 USD
+3.42 (+2.09%)
167.031 USD
-0.29 (-0.17%)
We assign a fundamental rating of 6 out of 10 to MU. MU was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an excellent profitability rating, but there are some minor concerns on its financial health. MU has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MU was profitable.
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 Return On Assets of 10.31%. This is amongst the best in the industry. MU outperforms 81.25% of its industry peers.
MU has a Return On Equity of 15.76%. This is amongst the best in the industry. MU outperforms 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.51%, MU belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROIC | 10.51% |
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 22.84%, MU belongs to the top of the industry, outperforming 84.82% 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 26.39%, MU belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has grown nicely.
With a Gross Margin value of 39.79%, MU is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.39% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% |
OM growth 3Y-5.97%
OM growth 5Y12.95%
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) 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.
Compared to 5 years ago, MU has more shares outstanding
MU has a better debt/assets ratio than last year.
2.2 Solvency
MU has an Altman-Z score of 5.76. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.76, MU is doing good in the industry, outperforming 61.61% of the companies in the same industry.
The Debt to FCF ratio of MU is 8.74, which is on the high side as it means it would take MU, 8.74 years of fcf income to pay off all of its debts.
MU's Debt to FCF ratio of 8.74 is in line compared to the rest of the industry. MU outperforms 48.21% of its industry peers.
MU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, MU perfoms like the industry average, outperforming 41.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 5.76 |
ROIC/WACC0.94
WACC11.21%
2.3 Liquidity
MU has a Current Ratio of 2.52. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
MU has a Current ratio (2.52) which is in line with its industry peers.
MU has a Quick Ratio of 1.79. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MU (1.79) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 552.76%, which is quite impressive.
The Earnings Per Share has been growing by 23.98% on average over the past years. This is a very strong growth
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 48.85%.
Measured over the past years, MU shows a quite strong growth in Revenue. The Revenue has been growing by 11.76% on average per year.
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
3.2 Future
The Earnings Per Share is expected to grow by 7.98% on average over the next years.
MU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y63.43%
EPS Next 2Y33.29%
EPS Next 3Y19.77%
EPS Next 5Y7.98%
Revenue Next Year32.32%
Revenue Next 2Y18.67%
Revenue Next 3Y13.21%
Revenue Next 5Y7.95%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.18, the valuation of MU can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a rather cheap valuation: MU is cheaper than 83.93% of the companies listed in the same industry.
MU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.76.
A Price/Forward Earnings ratio of 12.35 indicates a correct valuation of MU.
MU's Price/Forward Earnings ratio is rather cheap when compared to the industry. MU is cheaper than 97.32% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, MU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than MU, based on the Enterprise Value to EBITDA ratio.
MU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.26 | ||
| EV/EBITDA | 10.27 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MU's earnings are expected to grow with 19.77% in the coming years.
PEG (NY)0.32
PEG (5Y)0.84
EPS Next 2Y33.29%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.29%, which is pretty low.
Compared to an average industry Dividend Yield of 2.20, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.29, MU pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
On average, the dividend of MU grows each year by 44.07%, which is quite nice.
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)44.07%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MU pays out 6.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of MU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP6.11%
EPS Next 2Y33.29%
EPS Next 3Y19.77%
167.32
+3.42 (+2.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.16%
Ins Owners0.19%
Ins Owner Change-6.32%
Market Cap187.25B
Analysts80.77
Price Target177.22 (5.92%)
Short Float %2.27%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.47
Dividend Growth(5Y)44.07%
DP6.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.34%
Min EPS beat(2)2.85%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)6.34%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)39.36%
EPS beat(12)11
Avg EPS beat(12)15.75%
EPS beat(16)14
Avg EPS beat(16)12.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)1.14%
PT rev (3m)18.83%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)21.28%
EPS NY rev (1m)2.45%
EPS NY rev (3m)20.04%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)9.76%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)9.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 12.35 | ||
| P/S | 5.01 | ||
| P/FCF | 112.26 | ||
| P/OCF | 10.68 | ||
| P/B | 3.46 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)8.29
EY4.95%
EPS(NY)13.55
Fwd EY8.1%
FCF(TTM)1.49
FCFY0.89%
OCF(TTM)15.66
OCFY9.36%
SpS33.4
BVpS48.4
TBVpS46.97
PEG (NY)0.32
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROCE | 13.83% | ||
| ROIC | 10.51% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 12.61% | ||
| OM | 26.39% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% | ||
| FCFM | 4.46% |
ROA(3y)0.79%
ROA(5y)5.08%
ROE(3y)1.42%
ROE(5y)7%
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-6.71%
ROICexcg growth 5Y15.03%
ROICexc growth 3Y-6.48%
ROICexc growth 5Y15.36%
OM growth 3Y-5.97%
OM growth 5Y12.95%
PM growth 3Y-6.83%
PM growth 5Y12.75%
GM growth 3Y-4.15%
GM growth 5Y5.42%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 189.86% | ||
| Cap/Sales | 42.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.2% | ||
| Profit Quality | 19.53% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 5.76 |
F-Score7
WACC11.21%
ROIC/WACC0.94
Cap/Depr(3y)132.21%
Cap/Depr(5y)145.52%
Cap/Sales(3y)41.74%
Cap/Sales(5y)40.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
EPS Next Y63.43%
EPS Next 2Y33.29%
EPS Next 3Y19.77%
EPS Next 5Y7.98%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year32.32%
Revenue Next 2Y18.67%
Revenue Next 3Y13.21%
Revenue Next 5Y7.95%
EBIT growth 1Y828.91%
EBIT growth 3Y0.34%
EBIT growth 5Y26.24%
EBIT Next Year157.12%
EBIT Next 3Y40.93%
EBIT Next 5Y29.3%
FCF growth 1Y1278.51%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y106.01%
OCF growth 3Y4.9%
OCF growth 5Y16.11%