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 only an average score on both its financial health and profitability. 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.
MU had a positive operating cash flow in the past year.
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's Return On Assets of 6.40% is fine compared to the rest of the industry. MU outperforms 71.82% of its industry peers.
The Return On Equity of MU (9.61%) is better than 67.27% of its industry peers.
With a decent Return On Invested Capital value of 6.01%, MU is doing good in the industry, outperforming 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 9.61% | ||
| ROIC | 6.01% |
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
The Profit Margin of MU (14.92%) is better than 73.64% of its industry peers.
In the last couple of years the Profit Margin of MU has declined.
The Operating Margin of MU (19.65%) is better than 77.27% of its industry peers.
In the last couple of years the Operating Margin of MU has declined.
MU's Gross Margin of 34.73% is on the low side compared to the rest of the industry. MU is outperformed by 64.55% of its industry peers.
In the last couple of years the Gross Margin of MU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.65% | ||
| PM (TTM) | 14.92% | ||
| GM | 34.73% |
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.
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.
The debt/assets ratio for MU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.53 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a better Altman-Z score (4.53) than 61.82% of its industry peers.
MU has a debt to FCF ratio of 23.69. This is a negative value and a sign of low solvency as MU would need 23.69 years to pay back of all of its debts.
MU has a Debt to FCF ratio of 23.69. This is comparable to the rest of the industry: MU outperforms 42.73% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that MU is not too dependend on debt financing.
MU's Debt to Equity ratio of 0.28 is on the low side compared to the rest of the industry. MU is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.55
WACC10.93%
2.3 Liquidity
A Current Ratio of 3.13 indicates that MU has no problem at all paying its short term obligations.
MU has a Current ratio (3.13) which is comparable to the rest of the industry.
MU has a Quick Ratio of 1.99. 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 1.99. This is comparable to the rest of the industry: MU outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
MU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 269.97%, which is quite impressive.
MU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.38% yearly.
The Revenue has grown by 71.05% in the past year. This is a very strong growth!
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)269.97%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%271.43%
Revenue 1Y (TTM)71.05%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%38.27%
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 Y466.64%
EPS Next 2Y197.11%
EPS Next 3Y105.58%
EPS Next 5Y54.12%
Revenue Next Year41.4%
Revenue Next 2Y33.17%
Revenue Next 3Y22.11%
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 18.98 indicates a rather expensive valuation of MU.
MU's Price/Earnings ratio is a bit cheaper when compared to the industry. MU is cheaper than 78.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (26.70), we can say MU is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.72 indicates a reasonable 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 22.49. MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 89.09% 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 | 180.3 | ||
| EV/EBITDA | 8.15 |
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 105.58% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y197.11%
EPS Next 3Y105.58%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 2.41, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.48, MU pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of MU is nicely growing with an annual growth rate of 72.66%!
MU has been paying a dividend for at least 10 years, so it has a reliable track record.
MU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
11.09% of the earnings are spent on dividend by MU. This is a low number and sustainable payout ratio.
MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.09%
EPS Next 2Y197.11%
EPS Next 3Y105.58%
NASDAQ:MU (5/20/2025, 3:39:08 PM)
97.765
-0.89 (-0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.05%
Inst Owner Change1.45%
Ins Owners0.24%
Ins Owner Change-7.25%
Market Cap109.26B
Analysts82.08
Price Target123.23 (26.05%)
Short Float %2.59%
Short Ratio1.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP11.09%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.35%
Min EPS beat(2)0.31%
Max EPS beat(2)6.39%
EPS beat(4)4
Avg EPS beat(4)6.43%
Min EPS beat(4)0.31%
Max EPS beat(4)18.38%
EPS beat(8)8
Avg EPS beat(8)40.07%
EPS beat(12)11
Avg EPS beat(12)15.17%
EPS beat(16)14
Avg EPS beat(16)12.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.86%
Revenue beat(8)1
Avg Revenue beat(8)-0.27%
Revenue beat(12)1
Avg Revenue beat(12)-1.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)-4.26%
PT rev (3m)-5.78%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)0.44%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 8.72 | ||
| P/S | 3.49 | ||
| P/FCF | 180.3 | ||
| P/OCF | 8.36 | ||
| P/B | 2.25 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)5.15
EY5.27%
EPS(NY)11.21
Fwd EY11.47%
FCF(TTM)0.54
FCFY0.55%
OCF(TTM)11.7
OCFY11.97%
SpS28.03
BVpS43.52
TBVpS42.11
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 9.61% | ||
| ROCE | 9.44% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 7.07% | ||
| OM | 19.65% | ||
| PM (TTM) | 14.92% | ||
| GM | 34.73% | ||
| FCFM | 1.93% |
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 | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 154.87% | ||
| Cap/Sales | 39.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.03% | ||
| Profit Quality | 12.97% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 4.53 |
F-Score7
WACC10.93%
ROIC/WACC0.55
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)269.97%
EPS 3Y-40.6%
EPS 5Y-27.38%
EPS Q2Q%271.43%
EPS Next Y466.64%
EPS Next 2Y197.11%
EPS Next 3Y105.58%
EPS Next 5Y54.12%
Revenue 1Y (TTM)71.05%
Revenue growth 3Y-3.22%
Revenue growth 5Y1.42%
Sales Q2Q%38.27%
Revenue Next Year41.4%
Revenue Next 2Y33.17%
Revenue Next 3Y22.11%
Revenue Next 5Y13.7%
EBIT growth 1Y247.6%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year930.09%
EBIT Next 3Y144.24%
EBIT Next 5Y73.34%
FCF growth 1Y131.17%
FCF growth 3Y-63.25%
FCF growth 5Y-48.71%
OCF growth 1Y46.87%
OCF growth 3Y-11.96%
OCF growth 5Y-8.4%