MICRON TECHNOLOGY INC (MU) Stock Fundamental Analysis
NASDAQ:MU - Nasdaq - US5951121038 - Common Stock - Currency: USD
MU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MU has an average financial health and profitability rating. MU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years MU had a positive operating cash flow.
1.2 Ratios
MU has a Return On Assets of 6.40%. This is in the better half of the industry: MU outperforms 70.91% of its industry peers.
With a decent Return On Equity value of 9.61%, MU is doing good in the industry, outperforming 68.18% of the companies in the same industry.
MU's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. MU outperforms 69.09% of its industry peers.
| 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
MU's Profit Margin of 14.92% is fine compared to the rest of the industry. MU outperforms 72.73% 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 19.65%, MU is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of MU has declined.
Looking at the Gross Margin, with a value of 34.73%, MU is doing worse than 65.45% of the companies in the same industry.
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.
Compared to 1 year ago, MU has more shares outstanding
The number of shares outstanding for MU has been increased compared to 5 years ago.
Compared to 1 year ago, MU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.01 indicates that MU is not in any danger for bankruptcy at the moment.
The Altman-Z score of MU (5.01) is better 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 (23.69) which is in line with its industry peers.
MU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, MU is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 5.01 |
ROIC/WACC0.56
WACC10.78%
2.3 Liquidity
MU has a Current Ratio of 3.13. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.13, MU perfoms like the industry average, outperforming 53.64% of the companies in the same 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 (1.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 269.97% over the past year.
The earnings per share for MU have been decreasing by -27.38% on average. This is quite bad
MU shows a strong growth in Revenue. In the last year, the Revenue has grown by 71.05%.
MU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
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
MU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.12% yearly.
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 2Y33.18%
Revenue Next 3Y22.13%
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
Based on the Price/Earnings ratio of 22.56, the valuation of MU can be described as rather expensive.
Based on the Price/Earnings ratio, MU is valued a bit cheaper than 74.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. MU is around the same levels.
The Price/Forward Earnings ratio is 10.36, which indicates a very decent valuation of MU.
94.55% 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 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaply inside the industry as 88.18% of the companies are valued more expensively.
MU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 214.26 | ||
| EV/EBITDA | 9.53 |
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's earnings are expected to grow with 105.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y197.11%
EPS Next 3Y105.58%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 2.61, MU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)72.66%
Div Incr Years0
Div Non Decr Years3
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%
116.18
+0.15 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.05%
Inst Owner Change1.33%
Ins Owners0.24%
Ins Owner Change-7.25%
Market Cap129.84B
Analysts82.08
Price Target122.48 (5.42%)
Short Float %3.08%
Short Ratio1.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.46
Dividend Growth(5Y)72.66%
DP11.09%
Div Incr Years0
Div Non Decr Years3
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)-2.22%
PT rev (3m)-5.88%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0.44%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 10.36 | ||
| P/S | 4.15 | ||
| P/FCF | 214.26 | ||
| P/OCF | 9.93 | ||
| P/B | 2.67 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 9.53 |
EPS(TTM)5.15
EY4.43%
EPS(NY)11.21
Fwd EY9.65%
FCF(TTM)0.54
FCFY0.47%
OCF(TTM)11.7
OCFY10.07%
SpS28.03
BVpS43.52
TBVpS42.11
PEG (NY)0.05
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 | 5.01 |
F-Score7
WACC10.78%
ROIC/WACC0.56
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 2Y33.18%
Revenue Next 3Y22.13%
Revenue Next 5Y13.7%
EBIT growth 1Y247.6%
EBIT growth 3Y-46.41%
EBIT growth 5Y-32.36%
EBIT Next Year932.39%
EBIT Next 3Y141.38%
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%