MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
MU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: MU is growing strongly while it also seems undervalued. These ratings could make MU a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
MU had positive earnings in the past year.
MU had a positive operating cash flow in the past year.
MU had positive earnings in 4 of the past 5 years.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
MU has a Return On Assets of 7.94%. This is in the better half of the industry: MU outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 12.27%, MU is doing good in the industry, outperforming 78.18% of the companies in the same industry.
MU has a better Return On Invested Capital (7.18%) than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 12.27% | ||
| ROIC | 7.18% |
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 (18.41%) than 82.73% 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 22.77%, MU belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
MU's Operating Margin has declined in the last couple of years.
MU has a Gross Margin of 37.13%. This is in the lower half of the industry: MU underperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of MU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.77% | ||
| PM (TTM) | 18.41% | ||
| GM | 37.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 4.69 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a Altman-Z score of 4.69. This is in the better half of the industry: MU outperforms 62.73% of its industry peers.
The Debt to FCF ratio of MU is 8.26, which is on the high side as it means it would take MU, 8.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MU (8.26) is comparable to the rest of the industry.
MU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MU (0.30) is worse than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 4.69 |
ROIC/WACC0.65
WACC11.07%
2.3 Liquidity
A Current Ratio of 2.75 indicates that MU has no problem at all paying its short term obligations.
MU has a Current ratio (2.75) which is comparable to the rest of the industry.
A Quick Ratio of 1.89 indicates that MU should not have too much problems paying its short term obligations.
MU has a Quick ratio (1.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 757.14% over the past year.
MU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.38% yearly.
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.22%.
MU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
EPS 1Y (TTM)757.14%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%208.06%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
3.2 Future
Based on estimates for the next years, MU will show a very strong growth in Earnings Per Share. The EPS will grow by 54.74% on average per year.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.00% yearly.
EPS Next Y528.98%
EPS Next 2Y214.82%
EPS Next 3Y119.92%
EPS Next 5Y54.74%
Revenue Next Year46.7%
Revenue Next 2Y38.54%
Revenue Next 3Y26.91%
Revenue Next 5Y15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 18.20 indicates a rather expensive valuation of MU.
Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a rather cheap valuation: MU is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.86, MU is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.31, which indicates a very decent valuation of MU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MU indicates a rather cheap valuation: MU is cheaper than 97.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.94. MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 91.82% 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 | 69.74 | ||
| EV/EBITDA | 8.51 |
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.
A more expensive valuation may be justified as MU's earnings are expected to grow with 119.92% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y214.82%
EPS Next 3Y119.92%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.37%, which is pretty low.
MU's Dividend Yield is a higher than the industry average which is at 2.43.
With a Dividend Yield of 0.37, MU pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
On average, the dividend of MU grows each year by 72.66%, which is quite nice.
MU has paid a dividend for at least 10 years, which is a reliable track record.
MU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
8.37% 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.
DP8.37%
EPS Next 2Y214.82%
EPS Next 3Y119.92%
117.21
-4.84 (-3.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner Change-0.14%
Ins Owners0.19%
Ins Owner Change-5.92%
Market Cap131.17B
Analysts80.78
Price Target146.65 (25.12%)
Short Float %2.76%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP8.37%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.11%
Min EPS beat(2)6.39%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)5.8%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)40.5%
EPS beat(12)11
Avg EPS beat(12)16.21%
EPS beat(16)14
Avg EPS beat(16)12.73%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.03%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)3
Avg Revenue beat(16)-1.12%
PT rev (1m)17.17%
PT rev (3m)19.01%
EPS NQ rev (1m)9.3%
EPS NQ rev (3m)42.27%
EPS NY rev (1m)0%
EPS NY rev (3m)11.49%
Revenue NQ rev (1m)2.81%
Revenue NQ rev (3m)13.22%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 9.31 | ||
| P/S | 3.88 | ||
| P/FCF | 69.74 | ||
| P/OCF | 8.63 | ||
| P/B | 2.58 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)6.44
EY5.49%
EPS(NY)12.59
Fwd EY10.74%
FCF(TTM)1.68
FCFY1.43%
OCF(TTM)13.58
OCFY11.59%
SpS30.21
BVpS45.35
TBVpS43.94
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 12.27% | ||
| ROCE | 11.28% | ||
| ROIC | 7.18% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 8.77% | ||
| OM | 22.77% | ||
| PM (TTM) | 18.41% | ||
| GM | 37.13% | ||
| FCFM | 5.56% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 162.65% | ||
| Cap/Sales | 39.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.66% | ||
| Profit Quality | 30.22% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.69 |
F-Score7
WACC11.07%
ROIC/WACC0.65
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)757.14%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%208.06%
EPS Next Y528.98%
EPS Next 2Y214.82%
EPS Next 3Y119.92%
EPS Next 5Y54.74%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
Revenue Next Year46.7%
Revenue Next 2Y38.54%
Revenue Next 3Y26.91%
Revenue Next 5Y15%
EBIT growth 1Y518.48%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year973.3%
EBIT Next 3Y153.51%
EBIT Next 5Y75.7%
FCF growth 1Y139.68%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y198.8%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%