285.41 USD
-7.22 (-2.47%)
286.11 USD
+0.7 (+0.25%)
We assign a fundamental rating of 7 out of 10 to MU. MU was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While MU has a great profitability rating, there are some minor concerns on its financial health. MU is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make MU suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year MU was profitable.
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
Looking at the Return On Assets, with a value of 13.85%, MU belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
MU has a Return On Equity of 20.25%. This is amongst the best in the industry. MU outperforms 85.84% of its industry peers.
MU's Return On Invested Capital of 14.22% is amongst the best of the industry. MU outperforms 87.61% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 28.15%, MU belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
MU's Profit Margin has improved in the last couple of years.
The Operating Margin of MU (32.68%) is better than 91.15% of its industry peers.
MU's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 45.31%, MU perfoms like the industry average, outperforming 53.10% of the companies in the same industry.
MU's Gross Margin has improved in the last couple of years.
| 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.
MU has more shares outstanding than it did 5 years ago.
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.41 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a better Altman-Z score (9.41) than 70.80% of its industry peers.
The Debt to FCF ratio of MU is 2.53, which is a good value as it means it would take MU, 2.53 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.19 indicates that MU is not too dependend on debt financing.
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 | 9.41 |
ROIC/WACC1.35
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.46 indicates that MU has no problem at all paying its short term obligations.
The Current ratio of MU (2.46) is comparable to the rest of the industry.
MU has a Quick Ratio of 1.78. This is a normal value and indicates that MU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.78, MU is doing worse than 61.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 181.30% over the past year.
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 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
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.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.59% yearly.
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
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
The Price/Earnings ratio is 25.30, which means the current valuation is very expensive for MU.
MU's Price/Earnings ratio is rather cheap when compared to the industry. MU is cheaper than 80.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (26.51), we can say MU is valued inline with the index average.
The Price/Forward Earnings ratio is 7.87, which indicates a rather cheap valuation of MU.
Based on the Price/Forward Earnings ratio, MU is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MU to the average of the S&P500 Index (23.13), we can say MU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 81.42% of the companies are valued more expensively.
MU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.04 | ||
| EV/EBITDA | 14.76 |
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 has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MU's earnings are expected to grow with 67.67% in the coming years.
PEG (NY)0.1
PEG (5Y)1.06
EPS Next 2Y109.16%
EPS Next 3Y67.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, MU is not a good candidate for dividend investing.
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.
MU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.41%
EPS Next 2Y109.16%
EPS Next 3Y67.67%
285.41
-7.22 (-2.47%)
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 Cap321.19B
Revenue(TTM)42.31B
Net Income(TTM)11.91B
Analysts82.64
Price Target294.82 (3.3%)
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-DateN/A
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 | 25.3 | ||
| Fwd PE | 7.87 | ||
| P/S | 7.59 | ||
| P/FCF | 69.04 | ||
| P/OCF | 14.15 | ||
| P/B | 5.46 | ||
| P/tB | 5.62 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)11.28
EY3.95%
EPS(NY)36.27
Fwd EY12.71%
FCF(TTM)4.13
FCFY1.45%
OCF(TTM)20.16
OCFY7.07%
SpS37.6
BVpS52.26
TBVpS50.82
PEG (NY)0.1
PEG (5Y)1.06
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 | 9.41 |
F-Score7
WACC10.57%
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.
Can you provide the valuation status for MICRON TECHNOLOGY INC?
ChartMill assigns a valuation rating of 8 / 10 to MICRON TECHNOLOGY INC (MU). This can be considered as Undervalued.
Can you provide the profitability details for MICRON TECHNOLOGY INC?
MICRON TECHNOLOGY INC (MU) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for MU stock?
The Earnings per Share (EPS) of MICRON TECHNOLOGY INC (MU) is expected to grow by 257.63% in the next year.
Can you provide the dividend sustainability for MU stock?
The dividend rating of MICRON TECHNOLOGY INC (MU) is 5 / 10 and the dividend payout ratio is 4.41%.