292.63 USD
-1.74 (-0.59%)
292.15 USD
-0.48 (-0.16%)
Overall MU gets a fundamental rating of 7 out of 10. We evaluated MU against 113 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 growing strongly while it also seems undervalued. This is an interesting combination 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.
Of the past 5 years MU 4 years were profitable.
MU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MU has a Return On Assets of 13.85%. This is amongst the best in the industry. MU outperforms 86.73% of its industry peers.
With an excellent Return On Equity value of 20.25%, MU belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.22%, MU belongs to the best of the industry, outperforming 87.61% of the companies in the same industry.
| 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
MU's Profit Margin of 28.15% is amongst the best of the industry. MU outperforms 85.84% of its industry peers.
MU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 32.68%, MU belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has grown nicely.
MU has a Gross Margin (45.31%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MU 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MU is still creating some 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
Compared to 1 year ago, MU has an improved debt to assets ratio.
2.2 Solvency
MU has an Altman-Z score of 9.45. This indicates that MU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MU (9.45) is better than 69.91% of its industry peers.
MU has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as MU would need 2.53 years to pay back of all of its debts.
MU has a Debt to FCF ratio of 2.53. This is in the better half of the industry: MU outperforms 65.49% of its industry peers.
MU has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
MU has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 9.45 |
ROIC/WACC1.35
WACC10.55%
2.3 Liquidity
A Current Ratio of 2.46 indicates that MU has no problem at all paying its short term obligations.
MU has a Current ratio (2.46) which is in line with its industry peers.
A Quick Ratio of 1.78 indicates that MU should not have too much problems paying its short term obligations.
MU's Quick ratio of 1.78 is on the low side compared to the rest of the industry. MU is outperformed by 61.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.30%, which is quite impressive.
Measured over the past years, MU shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.98% on average per year.
The Revenue has grown by 45.43% in the past year. This is a very strong growth!
The Revenue has been growing by 11.76% on average over the past years. This is quite good.
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, MU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.58% on average per year.
Based on estimates for the next years, MU will show a quite strong growth in Revenue. The Revenue will grow by 12.59% on average per year.
EPS Next Y257.63%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
EPS Next 5Y10.58%
Revenue Next Year85.19%
Revenue Next 2Y50.74%
Revenue Next 3Y32.3%
Revenue Next 5Y12.59%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.94 indicates a quite expensive valuation of MU.
80.53% of the companies in the same industry are more expensive than MU, based on the Price/Earnings ratio.
MU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of MU.
100.00% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
MU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 81.42% of the companies in the same industry.
MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.79 | ||
| EV/EBITDA | 14.85 |
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 excellent profitability rating of MU may justify a higher PE ratio.
MU's earnings are expected to grow with 67.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)1.08
EPS Next 2Y109.16%
EPS Next 3Y67.67%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.16%, which is pretty low.
MU's Dividend Yield is a higher than the industry average which is at 0.56.
With a Dividend Yield of 0.16, MU pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 44.19%!
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)44.19%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MU pays out 4.41% 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.
DP4.41%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
292.63
-1.74 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.82%
Inst Owner Change-0.21%
Ins Owners0.23%
Ins Owner Change1.37%
Market Cap329.31B
Revenue(TTM)42.31B
Net Income(TTM)11.91B
Analysts82.64
Price Target294.82 (0.75%)
Short Float %2.24%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly Dividend0.47
Dividend Growth(5Y)44.19%
DP4.41%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.12%
Min EPS beat(2)2.85%
Max EPS beat(2)17.39%
EPS beat(4)4
Avg EPS beat(4)10.61%
Min EPS beat(4)2.85%
Max EPS beat(4)17.39%
EPS beat(8)8
Avg EPS beat(8)40.89%
EPS beat(12)12
Avg EPS beat(12)32.69%
EPS beat(16)15
Avg EPS beat(16)13.99%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)3.12%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)3.12%
Revenue beat(8)3
Avg Revenue beat(8)0.28%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)4
Avg Revenue beat(16)-0.74%
PT rev (1m)39.37%
PT rev (3m)98.24%
EPS NQ rev (1m)105.92%
EPS NQ rev (3m)172.4%
EPS NY rev (1m)73.4%
EPS NY rev (3m)118.83%
Revenue NQ rev (1m)42.77%
Revenue NQ rev (3m)55.79%
Revenue NY rev (1m)27.09%
Revenue NY rev (3m)40%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 8.07 | ||
| P/S | 7.78 | ||
| P/FCF | 70.79 | ||
| P/OCF | 14.51 | ||
| P/B | 5.6 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 14.85 |
EPS(TTM)11.28
EY3.85%
EPS(NY)36.27
Fwd EY12.39%
FCF(TTM)4.13
FCFY1.41%
OCF(TTM)20.16
OCFY6.89%
SpS37.6
BVpS52.26
TBVpS50.82
PEG (NY)0.1
PEG (5Y)1.08
Graham Number115.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.85% | ||
| ROE | 20.25% | ||
| ROCE | 18.71% | ||
| ROIC | 14.22% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 16.95% | ||
| OM | 32.68% | ||
| PM (TTM) | 28.15% | ||
| GM | 45.31% | ||
| FCFM | 10.99% |
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-6.53%
ROICexgc growth 5Y15.16%
ROICexc growth 3Y-6.3%
ROICexc growth 5Y15.49%
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%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 211.39% | ||
| Cap/Sales | 42.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.48% | ||
| Profit Quality | 39.06% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 9.45 |
F-Score7
WACC10.55%
ROIC/WACC1.35
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)181.3%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%167.04%
EPS Next Y257.63%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
EPS Next 5Y10.58%
Revenue 1Y (TTM)45.43%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%56.65%
Revenue Next Year85.19%
Revenue Next 2Y50.74%
Revenue Next 3Y32.3%
Revenue Next 5Y12.59%
EBIT growth 1Y216.87%
EBIT growth 3Y0.54%
EBIT growth 5Y26.38%
EBIT Next Year430.9%
EBIT Next 3Y88.13%
EBIT Next 5Y27.78%
FCF growth 1Y192.93%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y1025.04%
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 7 / 10 to MU.
What is the valuation status of MICRON TECHNOLOGY INC (MU) stock?
ChartMill assigns a valuation rating of 7 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Undervalued.
What is the profitability of MU stock?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 8 / 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 25.94 and the Price/Book (PB) ratio is 5.6.
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 4.41%.