MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
Overall MU gets a fundamental rating of 6 out of 10. We evaluated MU against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an average financial health and profitability rating. 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.
In the past year MU had a positive cash flow from operations.
MU had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
MU's Return On Assets of 7.94% is fine compared to the rest of the industry. MU outperforms 77.27% of its industry peers.
MU has a better Return On Equity (12.27%) than 76.36% of its industry peers.
With a decent Return On Invested Capital value of 7.18%, MU is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| 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's Profit Margin of 18.41% is fine compared to the rest of the industry. MU outperforms 78.18% of its industry peers.
MU's Profit Margin has declined in the last couple of years.
MU's Operating Margin of 22.77% is amongst the best of the industry. MU outperforms 82.73% of its industry peers.
In the last couple of years the Operating Margin of MU has declined.
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.
MU's Gross Margin has declined in the last couple of years.
| 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
MU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MU has been increased compared to 5 years ago.
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.63 indicates that MU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.63, MU is doing good in the industry, outperforming 60.91% of the companies in the same industry.
MU has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as MU would need 8.26 years to pay back of all of its debts.
The Debt to FCF ratio of MU (8.26) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.30 indicates that MU is not too dependend on debt financing.
MU's Debt to Equity ratio of 0.30 is on the low side compared to the rest of the industry. MU is outperformed by 60.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 4.63 |
ROIC/WACC0.65
WACC11.06%
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 in line with its industry peers.
MU has a Quick Ratio of 1.89. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
MU has a Quick ratio of 1.89. This is comparable to the rest of the industry: MU outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 757.14%, 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.
Looking at the last year, MU shows a very strong growth in Revenue. The Revenue has grown by 58.22%.
Measured over the past years, MU shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
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 54.12% on average per year.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.70% yearly.
EPS Next Y528.98%
EPS Next 2Y214.82%
EPS Next 3Y119.92%
EPS Next 5Y54.12%
Revenue Next Year46.66%
Revenue Next 2Y38.5%
Revenue Next 3Y26.91%
Revenue Next 5Y13.7%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.14, the valuation of MU can be described as rather expensive.
84.55% of the companies in the same industry are more expensive than MU, based on the Price/Earnings ratio.
MU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.77 indicates a reasonable valuation of MU.
MU's Price/Forward Earnings ratio is rather cheap when compared to the industry. MU is cheaper than 98.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MU to the average of the S&P500 Index (37.13), we can say MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
92.73% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.69 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The 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 119.92% in the coming years. This may justify a more expensive valuation.
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 0.41%, which is pretty low.
MU's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 0.41, MU pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
On average, the dividend of MU grows each year by 72.66%, 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)72.66%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MU pays out 8.37% of its income as dividend. This is a sustainable payout ratio.
MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.37%
EPS Next 2Y214.82%
EPS Next 3Y119.92%
NASDAQ:MU (7/31/2025, 9:56:10 AM)
110.405
-4.33 (-3.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.21%
Inst Owner Change-0.29%
Ins Owners0.22%
Ins Owner Change-6.26%
Market Cap123.56B
Analysts82.04
Price Target146.73 (32.9%)
Short Float %2.97%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)17.24%
PT rev (3m)17.14%
EPS NQ rev (1m)27.55%
EPS NQ rev (3m)30.16%
EPS NY rev (1m)10.64%
EPS NY rev (3m)11.49%
Revenue NQ rev (1m)9.49%
Revenue NQ rev (3m)10.13%
Revenue NY rev (1m)3.44%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 8.77 | ||
| P/S | 3.65 | ||
| P/FCF | 65.69 | ||
| P/OCF | 8.13 | ||
| P/B | 2.43 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)6.44
EY5.83%
EPS(NY)12.59
Fwd EY11.4%
FCF(TTM)1.68
FCFY1.52%
OCF(TTM)13.58
OCFY12.3%
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 | 4.63 |
F-Score7
WACC11.06%
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 5Y54.12%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
Revenue Next Year46.66%
Revenue Next 2Y38.5%
Revenue Next 3Y26.91%
Revenue Next 5Y13.7%
EBIT growth 1Y518.48%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year932.39%
EBIT Next 3Y141.38%
EBIT Next 5Y73.34%
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%