MICRON TECHNOLOGY INC (MU)

US5951121038 - Common Stock

119.25  +0.45 (+0.38%)

Premarket: 118.8 -0.45 (-0.38%)

Fundamental Rating

3

Taking everything into account, MU scores 3 out of 10 in our fundamental rating. MU was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. MU scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MU has a valuation in line with the averages, but on the other hand it scores bad on growth.



2

1. Profitability

1.1 Basic Checks

In the past year MU has reported negative net income.
In the past year MU had a positive cash flow from operations.
Of the past 5 years MU 4 years were profitable.
Each year in the past 5 years MU had a positive operating cash flow.

1.2 Ratios

MU has a worse Return On Assets (-5.73%) than 68.87% of its industry peers.
MU's Return On Equity of -8.59% is on the low side compared to the rest of the industry. MU is outperformed by 66.98% of its industry peers.
Industry RankSector Rank
ROA -5.73%
ROE -8.59%
ROIC N/A
ROA(3y)4.66%
ROA(5y)6.38%
ROE(3y)5.84%
ROE(5y)8.4%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for MU so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

5

2. Health

2.1 Basic Checks

MU does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for MU has been increased compared to 1 year ago.
Compared to 5 years ago, MU has less shares outstanding
The debt/assets ratio for MU is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.86 indicates that MU is not in any danger for bankruptcy at the moment.
MU has a Altman-Z score (4.86) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.30 indicates that MU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, MU is not doing good in the industry: 62.26% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF N/A
Altman-Z 4.86
ROIC/WACCN/A
WACC11.16%

2.3 Liquidity

MU has a Current Ratio of 3.74. This indicates that MU is financially healthy and has no problem in meeting its short term obligations.
MU has a better Current ratio (3.74) than 60.38% of its industry peers.
A Quick Ratio of 2.40 indicates that MU has no problem at all paying its short term obligations.
MU has a Quick ratio (2.40) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 3.74
Quick Ratio 2.4

3

3. Growth

3.1 Past

The earnings per share for MU have decreased strongly by -188.34% in the last year.
The Revenue for MU has decreased by -20.60% in the past year. This is quite bad
MU shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.55% yearly.
EPS 1Y (TTM)-188.34%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q173.68%
Revenue 1Y (TTM)-20.6%
Revenue growth 3Y-10.17%
Revenue growth 5Y-12.55%
Revenue growth Q2Q57.7%

3.2 Future

Based on estimates for the next years, MU will show a very strong growth in Earnings Per Share. The EPS will grow by 35.47% on average per year.
MU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.99% yearly.
EPS Next Y87.15%
EPS Next 2Y103.84%
EPS Next 3Y64.87%
EPS Next 5Y35.47%
Revenue Next Year47.02%
Revenue Next 2Y43.74%
Revenue Next 3Y30.58%
Revenue Next 5Y15.99%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MU. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 17.79, the valuation of MU can be described as rather expensive.
82.08% of the companies in the same industry are more expensive than MU, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MU to the average of the S&P500 Index (22.74), we can say MU is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 17.79

4.2 Price Multiples

MU's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 35.9

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's earnings are expected to grow with 64.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.84%
EPS Next 3Y64.87%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.39%, MU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.02, MU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.39, MU pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.39%

5.2 History

On average, the dividend of MU grows each year by 145.09%, which is quite nice.
MU has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MU decreased in the last 3 years.
Dividend Growth(5Y)145.09%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

The earnings of MU are negative and hence is the payout ratio. MU will probably not be able to sustain this dividend level.
The dividend of MU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-13.49%
EPS Next 2Y103.84%
EPS Next 3Y64.87%

MICRON TECHNOLOGY INC

NASDAQ:MU (3/27/2024, 8:00:01 PM)

Premarket: 118.8 -0.45 (-0.38%)

119.25

+0.45 (+0.38%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap131.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.79
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.73%
ROE -8.59%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.74
Quick Ratio 2.4
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-188.34%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y87.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.6%
Revenue growth 3Y-10.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y