| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
MU Stock Overview
Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide.
Rewards
Risk Analysis
No risks detected for MU from our risk checks.
Micron Technology Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$69.59 |
| 52 Week High | US$98.45 |
| 52 Week Low | US$65.67 |
| Beta | 1.18 |
| 1 Month Change | 0.26% |
| 3 Month Change | -23.16% |
| 1 Year Change | -16.06% |
| 3 Year Change | 104.68% |
| 5 Year Change | 133.84% |
| Change since IPO | 6,859.00% |
Recent News & Updates
Micron: PC And Mobile Headwinds Could Cause More Pain
Micron presented its long-term model at its recent Investor Day. But, there weren't any positive surprises, even though it offered helpful insights into its long-term profitability. We think Micron's near-term profitability could have peaked. In addition, the headwinds in the PC and mobile segment could continue to hinder MU stock momentum. We revise our price target to $80 from $100. As a result, we also revise our rating from Buy to Hold due to a less attractive risk/reward profile.
What Chip And Cloud Strength Mean For Micron Technology
The semiconductor industry continues to be robust and is a strong tailwind for Micron as memory is usually needed in all electronic gadgets. Strength in the cloud storage business from hyperscaler companies benefits Micron with its advanced data center SSD devices. Micron's long-running collaboration with AMD's expanding hyperscaler business with its EPYC chips is a significant tailwind for Micron.
Is Now The Time To Look At Buying Micron Technology, Inc. (NASDAQ:MU)?
Today we're going to take a look at the well-established Micron Technology, Inc. ( NASDAQ:MU ). The company's stock saw...
Micron Technology: An Absolute Buy At Current Market Levels
Demand from DRAM and NAND remains strong; Micron still expects double-digit demand growth. The auto industry market potential is massive with autonomy on the horizon; Micron holds roughly 50% of the auto market. Micron is trading well below the valuation metrics of comparable industry peers, yet is producing better bottom-line results.
Micron Is Too Cheap To Ignore
We believe Micron's stock is now undervalued. Industry forecasts show that the memory will grow at 16% CAGR by 2024, and as the largest pure-memory company among competitors, Micron will be at the heart of that growth. We expect Micron's stock to outperform the market as we believe it is better positioned today to weather the semiconductor industry downturn. MU is the perfect investment entry point into semiconductors and won’t always be this cheap.
Shareholder Returns
| MU | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | -1.2% | -1.2% | -0.5% |
| 1Y | -16.1% | -3.7% | -12.3% |
Return vs Industry: MU underperformed the US Semiconductor industry which returned -1.9% over the past year.
Return vs Market: MU underperformed the US Market which returned -12.9% over the past year.
Price Volatility
| MU volatility | |
|---|---|
| MU Average Weekly Movement | 7.9% |
| Semiconductor Industry Average Movement | 8.6% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 2.9% |
Stable Share Price: MU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: MU's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1978 | 44,000 | Sanjay Mehrotra | https://www.micron.com |
Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It provides memory and storage technologies comprises DRAM products, which are dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; NAND products that are non-volatile and re-writeable semiconductor storage devices; and NOR memory products, which are non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.
Micron Technology Fundamentals Summary
| MU fundamental statistics | |
|---|---|
| Market Cap | US$77.71b |
| Earnings (TTM) | US$9.02b |
| Revenue (TTM) | US$31.17b |
8.6x
P/E Ratio2.5x
P/S RatioIs MU overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MU income statement (TTM) | |
|---|---|
| Revenue | US$31.17b |
| Cost of Revenue | US$16.84b |
| Gross Profit | US$14.33b |
| Other Expenses | US$5.30b |
| Earnings | US$9.02b |
Last Reported Earnings
Mar 03, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.08 |
| Gross Margin | 45.97% |
| Net Profit Margin | 28.95% |
| Debt/Equity Ratio | 12.7% |
How did MU perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield4%
Payout RatioValuation
Is Micron Technology undervalued compared to its fair value and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
4.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MU ($69.59) is trading below our estimate of fair value ($72.56)
Significantly Below Fair Value: MU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MU is good value based on its PE Ratio (8.6x) compared to the US Semiconductor industry average (19.8x).
PE vs Market: MU is good value based on its PE Ratio (8.6x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: MU is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: MU is good value based on its PB Ratio (1.6x) compared to the US Semiconductor industry average (3.5x).
Future Growth
How is Micron Technology forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MU's forecast earnings growth (10.6% per year) is above the savings rate (1.9%).
Earnings vs Market: MU's earnings (10.6% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: MU's earnings are forecast to grow, but not significantly.
Revenue vs Market: MU's revenue (10.3% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: MU's revenue (10.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MU's Return on Equity is forecast to be low in 3 years time (18.8%).
Past Performance
How has Micron Technology performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-7.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MU has high quality earnings.
Growing Profit Margin: MU's current net profit margins (29%) are higher than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: MU's earnings have declined by 7% per year over the past 5 years.
Accelerating Growth: MU's earnings growth over the past year (182.5%) exceeds its 5-year average (-7% per year).
Earnings vs Industry: MU earnings growth over the past year (182.5%) exceeded the Semiconductor industry 70.4%.
Return on Equity
High ROE: MU's Return on Equity (18.9%) is considered low.
Financial Health
How is Micron Technology's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: MU's short term assets ($21.5B) exceed its short term liabilities ($6.9B).
Long Term Liabilities: MU's short term assets ($21.5B) exceed its long term liabilities ($8.9B).
Debt to Equity History and Analysis
Debt Level: MU has more cash than its total debt.
Reducing Debt: MU's debt to equity ratio has reduced from 73.7% to 12.7% over the past 5 years.
Debt Coverage: MU's debt is well covered by operating cash flow (246.8%).
Interest Coverage: MU's interest payments on its debt are well covered by EBIT (68x coverage).
Balance Sheet
Dividend
What is Micron Technology current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MU's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: MU's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: MU is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MU is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: MU is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: MU is not paying a notable dividend for the US market.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Sanjay Mehrotra (62 yo)
5yrs
Tenure
US$25,316,709
Compensation
Mr. Sanjay Mehrotra serves as Independent Director at CDW Corporation since March 21, 2021. He has been the Chief Executive Officer, President and Director at Micron Technology, Inc. since May 8, 2017. He...
CEO Compensation Analysis
Compensation vs Market: Sanjay's total compensation ($USD25.32M) is above average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Sanjay's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: MU's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: MU's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Micron Technology, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Micron Technology, Inc.
- Ticker: MU
- Exchange: NasdaqGS
- Founded: 1978
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$77.709b
- Shares outstanding: 1.12b
- Website: https://www.micron.com
Number of Employees
Location
- Micron Technology, Inc.
- 8000 South Federal Way
- Boise
- Idaho
- 83716-9632
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/24 00:00 |
| End of Day Share Price | 2022/05/23 00:00 |
| Earnings | 2022/03/03 |
| Annual Earnings | 2021/09/02 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.