MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
Taking everything into account, MU scores 5 out of 10 in our fundamental rating. MU was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an average financial health and profitability rating. MU is growing strongly while it is still valued neutral. This is a good combination!
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.
MU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MU has a Return On Assets of 7.94%. This is in the better half of the industry: MU outperforms 77.27% of its industry peers.
With a decent Return On Equity value of 12.27%, MU is doing good in the industry, outperforming 76.36% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.18%, MU is doing good in the industry, outperforming 73.64% 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 77.27% 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 82.73% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has declined.
The Gross Margin of MU (37.13%) is worse than 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
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.
MU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.81 indicates that MU is not in any danger for bankruptcy at the moment.
MU's Altman-Z score of 4.81 is in line compared to the rest of the industry. MU outperforms 60.00% of its industry peers.
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.
MU has a Debt to FCF ratio of 8.26. This is comparable to the rest of the industry: MU outperforms 48.18% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that MU is not too dependend on debt financing.
MU has a worse Debt to Equity ratio (0.30) than 60.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.66
WACC10.94%
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.
With a Quick ratio value of 1.89, MU perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| 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.
Looking at the last year, MU shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 54.12% on average over the next years. This is a very strong growth
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 Y468.51%
EPS Next 2Y198.11%
EPS Next 3Y109.24%
EPS Next 5Y54.12%
Revenue Next Year41.78%
Revenue Next 2Y33.54%
Revenue Next 3Y22.43%
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
A Price/Earnings ratio of 18.99 indicates a rather expensive valuation of MU.
Based on the Price/Earnings ratio, MU is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
MU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.84, the valuation of MU can be described as very reasonable.
94.55% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
MU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 90.91% 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 | 72.66 | ||
| EV/EBITDA | 8.86 |
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.
A more expensive valuation may be justified as MU's earnings are expected to grow with 109.24% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y198.11%
EPS Next 3Y109.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, MU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.28, MU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 72.66%!
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 2Y198.11%
EPS Next 3Y109.24%
122.29
+0.55 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.21%
Inst Owner Change1.33%
Ins Owners0.22%
Ins Owner Change-7.67%
Market Cap136.67B
Analysts82.04
Price Target125.15 (2.34%)
Short Float %2.53%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)1.56%
PT rev (3m)-3.37%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)0.33%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 10.84 | ||
| P/S | 4.04 | ||
| P/FCF | 72.66 | ||
| P/OCF | 8.99 | ||
| P/B | 2.69 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)6.44
EY5.27%
EPS(NY)11.29
Fwd EY9.23%
FCF(TTM)1.68
FCFY1.38%
OCF(TTM)13.6
OCFY11.12%
SpS30.26
BVpS45.41
TBVpS44
PEG (NY)0.04
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 | 4.81 |
F-Score7
WACC10.94%
ROIC/WACC0.66
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 Y468.51%
EPS Next 2Y198.11%
EPS Next 3Y109.24%
EPS Next 5Y54.12%
Revenue 1Y (TTM)58.22%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%36.56%
Revenue Next Year41.78%
Revenue Next 2Y33.54%
Revenue Next 3Y22.43%
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%