236.48 USD
+6.22 (+2.7%)
237.2 USD
+0.72 (+0.3%)
MU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 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
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.
In the past 5 years MU always reported a positive cash flow from operatings.
1.2 Ratios
MU has a better Return On Assets (10.31%) than 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 15.76%, MU belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.51%, MU belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROIC | 10.51% |
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 22.84%, MU belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
MU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.40%, MU belongs to the top of the industry, outperforming 84.82% of the companies in the same industry.
MU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.79%, MU is in line with its industry, outperforming 41.07% of the companies in the same industry.
In the last couple of years the Gross Margin of MU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.4% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% |
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
MU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
MU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.33 indicates that MU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.33, MU is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of MU is 8.74, which is on the high side as it means it would take MU, 8.74 years of fcf income to pay off all of its debts.
MU's Debt to FCF ratio of 8.74 is in line compared to the rest of the industry. MU outperforms 47.32% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that MU is not too dependend on debt financing.
MU's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. MU outperforms 44.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Altman-Z | 7.33 |
ROIC/WACC1
WACC10.48%
2.3 Liquidity
A Current Ratio of 2.52 indicates that MU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, MU is in line with its industry, outperforming 41.96% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that MU should not have too much problems paying its short term obligations.
MU has a Quick ratio of 1.79. This is in the lower half of the industry: MU underperforms 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 552.76% 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 48.85% 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)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
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 Y106.24%
EPS Next 2Y51.88%
EPS Next 3Y30.26%
EPS Next 5Y10.58%
Revenue Next Year45.72%
Revenue Next 2Y28.29%
Revenue Next 3Y20.2%
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
MU is valuated quite expensively with a Price/Earnings ratio of 28.53.
Compared to the rest of the industry, the Price/Earnings ratio of MU indicates a somewhat cheap valuation: MU is cheaper than 76.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MU to the average of the S&P500 Index (26.31), we can say MU is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 13.83, the valuation of MU can be described as correct.
Based on the Price/Forward Earnings ratio, MU is valued cheaply inside the industry as 91.96% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. MU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MU is valued cheaper than 80.36% 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 | 159.14 | ||
| EV/EBITDA | 14.38 |
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.
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 30.26% in the coming years.
PEG (NY)0.27
PEG (5Y)1.19
EPS Next 2Y51.88%
EPS Next 3Y30.26%
5. Dividend
5.1 Amount
MU has a yearly dividend return of 0.20%, which is pretty low.
Compared to an average industry Dividend Yield of 2.25, MU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
On average, the dividend of MU grows each year by 44.03%, which is quite nice.
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)44.03%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
6.11% 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.
DP6.11%
EPS Next 2Y51.88%
EPS Next 3Y30.26%
236.48
+6.22 (+2.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.99%
Inst Owner Change-0.25%
Ins Owners0.19%
Ins Owner Change-0.13%
Market Cap265.44B
Revenue(TTM)37.38B
Net Income(TTM)8.54B
Analysts82.96
Price Target211.53 (-10.55%)
Short Float %2.37%
Short Ratio0.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.47
Dividend Growth(5Y)44.03%
DP6.11%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.34%
Min EPS beat(2)2.85%
Max EPS beat(2)15.83%
EPS beat(4)4
Avg EPS beat(4)6.34%
Min EPS beat(4)0.31%
Max EPS beat(4)15.83%
EPS beat(8)8
Avg EPS beat(8)39.36%
EPS beat(12)11
Avg EPS beat(12)15.75%
EPS beat(16)14
Avg EPS beat(16)12.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)1.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-0.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)19.36%
PT rev (3m)44.24%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)27.34%
EPS NY rev (1m)0.19%
EPS NY rev (3m)35.83%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)7.06%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)12.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 13.83 | ||
| P/S | 7.1 | ||
| P/FCF | 159.14 | ||
| P/OCF | 15.15 | ||
| P/B | 4.9 | ||
| P/tB | 5.05 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)8.29
EY3.51%
EPS(NY)17.1
Fwd EY7.23%
FCF(TTM)1.49
FCFY0.63%
OCF(TTM)15.61
OCFY6.6%
SpS33.3
BVpS48.26
TBVpS46.83
PEG (NY)0.27
PEG (5Y)1.19
Graham Number94.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 15.76% | ||
| ROCE | 13.83% | ||
| ROIC | 10.51% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 12.61% | ||
| OM | 26.4% | ||
| PM (TTM) | 22.84% | ||
| GM | 39.79% | ||
| FCFM | 4.46% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 8.74 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 189.86% | ||
| Cap/Sales | 42.42% | ||
| Interest Coverage | 23.6 | ||
| Cash Conversion | 96.2% | ||
| Profit Quality | 19.53% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 7.33 |
F-Score7
WACC10.48%
ROIC/WACC1
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)552.76%
EPS 3Y-0.2%
EPS 5Y23.98%
EPS Q2Q%156.78%
EPS Next Y106.24%
EPS Next 2Y51.88%
EPS Next 3Y30.26%
EPS Next 5Y10.58%
Revenue 1Y (TTM)48.85%
Revenue growth 3Y6.71%
Revenue growth 5Y11.76%
Sales Q2Q%46%
Revenue Next Year45.72%
Revenue Next 2Y28.29%
Revenue Next 3Y20.2%
Revenue Next 5Y12.59%
EBIT growth 1Y829%
EBIT growth 3Y0.54%
EBIT growth 5Y26.38%
EBIT Next Year157.12%
EBIT Next 3Y55.96%
EBIT Next 5Y27.78%
FCF growth 1Y1278.51%
FCF growth 3Y-18.79%
FCF growth 5Y82.23%
OCF growth 1Y106.01%
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 28.53 and the Price/Book (PB) ratio is 4.9.
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 6.11%.