MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
USA - NASDAQ:MU - US5951121038 - Common Stock
234.7 USD
+10.93 (+4.88%)
233.319 USD
-1.38 (-0.59%)
Taking everything into account, MU scores 6 out of 10 in our fundamental rating. MU was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MU scores excellent on profitability, but there are some minor concerns on its financial health. MU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes MU very considerable for 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.
Of the past 5 years MU 4 years were profitable.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
MU's Return On Assets of 10.31% is amongst the best of the industry. MU outperforms 80.36% of its industry peers.
With an excellent Return On Equity value of 15.76%, MU belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of MU (10.51%) is better than 79.46% of its industry peers.
| 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
The Profit Margin of MU (22.84%) is better than 84.82% of its industry peers.
In the last couple of years the Profit Margin of MU has grown nicely.
The Operating Margin of MU (26.39%) is better than 85.71% of its industry peers.
MU's Operating Margin has improved in the last couple of years.
MU's Gross Margin of 39.79% is on the low side compared to the rest of the industry. MU is outperformed by 60.71% of its industry peers.
MU's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, MU has more shares outstanding
Compared to 5 years ago, MU has more shares outstanding
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.18 indicates that MU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.18, MU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MU has a debt to FCF ratio of 8.74. This is a slightly negative value and a sign of low solvency as MU would need 8.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.74, MU is in line with its industry, outperforming 47.32% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that MU is not too dependend on debt financing.
MU has a Debt to Equity ratio of 0.26. This is comparable to the rest of the industry: MU outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 7.18 |
ROIC/WACC0.9
WACC11.69%
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.
Looking at the Current ratio, with a value of 2.52, MU is in line with its industry, outperforming 42.86% of the companies in the same industry.
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.
MU's Quick ratio of 1.79 is on the low side compared to the rest of the industry. MU is outperformed by 61.61% 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
The Revenue has grown by 48.85% in the past year. This is a very strong growth!
MU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.76% yearly.
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
MU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.58% yearly.
Based on estimates for the next years, MU will show a quite strong growth in Revenue. The Revenue will grow by 10.14% on average per year.
EPS Next Y105.86%
EPS Next 2Y51.62%
EPS Next 3Y32.94%
EPS Next 5Y10.58%
Revenue Next Year45.44%
Revenue Next 2Y28.11%
Revenue Next 3Y19.37%
Revenue Next 5Y10.14%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.31, the valuation of MU can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a somewhat cheap valuation: MU is cheaper than 79.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, MU is valued at the same level.
MU is valuated correctly with a Price/Forward Earnings ratio of 13.75.
97.32% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, MU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.31 | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
MU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MU is cheaper than 83.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 157.94 | ||
| EV/EBITDA | 13.99 |
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.
The decent profitability rating of MU may justify a higher PE ratio.
MU's earnings are expected to grow with 32.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)1.18
EPS Next 2Y51.62%
EPS Next 3Y32.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, MU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.13, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.21, MU pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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
6.11% 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.
DP6.11%
EPS Next 2Y51.62%
EPS Next 3Y32.94%
234.7
+10.93 (+4.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.4%
Ins Owners0.19%
Ins Owner Change1.47%
Market Cap263.44B
Revenue(TTM)37.38B
Net Income(TTM)8.54B
Analysts81.51
Price Target205.22 (-12.56%)
Short Float %2.25%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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)15.8%
PT rev (3m)39.86%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)34.27%
EPS NY rev (1m)25.96%
EPS NY rev (3m)35.58%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)8.94%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)12.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.31 | ||
| Fwd PE | 13.75 | ||
| P/S | 7.05 | ||
| P/FCF | 157.94 | ||
| P/OCF | 15.03 | ||
| P/B | 4.86 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 13.99 |
EPS(TTM)8.29
EY3.53%
EPS(NY)17.07
Fwd EY7.27%
FCF(TTM)1.49
FCFY0.63%
OCF(TTM)15.61
OCFY6.65%
SpS33.3
BVpS48.26
TBVpS46.83
PEG (NY)0.27
PEG (5Y)1.18
Graham Number94.87
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
ROICexgc growth 3Y-6.71%
ROICexgc 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 | 7.18 |
F-Score7
WACC11.69%
ROIC/WACC0.9
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 Y105.86%
EPS Next 2Y51.62%
EPS Next 3Y32.94%
EPS Next 5Y10.58%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year45.44%
Revenue Next 2Y28.11%
Revenue Next 3Y19.37%
Revenue Next 5Y10.14%
EBIT growth 1Y828.91%
EBIT growth 3Y0.34%
EBIT growth 5Y26.24%
EBIT Next Year157.12%
EBIT Next 3Y48.54%
EBIT Next 5Y27.78%
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%
MICRON TECHNOLOGY INC / MU FAQ
What is the ChartMill fundamental rating of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MU.
What is the valuation status of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a valuation rating of 6 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Fairly Valued.
What is the profitability of MU stock?
MICRON TECHNOLOGY INC (MU) 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 (MU) is 28.31 and the Price/Book (PB) ratio is 4.86.
Is the dividend of MICRON TECHNOLOGY INC sustainable?
The dividend rating of MICRON TECHNOLOGY INC (MU) is 5 / 10 and the dividend payout ratio is 6.11%.