NasdaqGS:MU

Stock Analysis Report

Executive Summary

Micron Technology, Inc. manufactures and sells memory and storage solutions worldwide.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Micron Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

MU

1.7%

US Semiconductor

-2.6%

US Market


1 Year Return

11.1%

MU

3.4%

US Semiconductor

-13.3%

US Market

Return vs Industry: MU exceeded the US Semiconductor industry which returned -3.1% over the past year.

Return vs Market: MU exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

MUIndustryMarket
7 Day10.3%1.7%-2.6%
30 Day-9.9%-7.8%-15.2%
90 Day-19.4%-14.9%-22.2%
1 Year11.1%11.1%5.5%3.4%-11.5%-13.3%
3 Year70.6%70.6%54.6%46.0%13.2%5.7%
5 Year67.3%67.3%110.2%90.0%31.8%17.2%

Price Volatility Vs. Market

How volatile is Micron Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Micron Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MU ($46.37) is trading below our estimate of fair value ($154.86)

Significantly Below Fair Value: MU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MU is good value based on its PE Ratio (22.3x) compared to the Semiconductor industry average (24.3x).

PE vs Market: MU is poor value based on its PE Ratio (22.3x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: MU is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MU is good value based on its PB Ratio (1.4x) compared to the US Semiconductor industry average (2.2x).


Next Steps

Future Growth

How is Micron Technology forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

71.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MU's forecast earnings growth (71.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MU's earnings (71.9% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MU's revenue (17.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: MU's revenue (17.2% 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 (14.4%).


Next Steps

Past Performance

How has Micron Technology performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MU has high quality earnings.

Growing Profit Margin: MU's current net profit margins (11.7%) are lower than last year (43.6%).


Past Earnings Growth Analysis

Earnings Trend: MU's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: MU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MU had negative earnings growth (-82.4%) over the past year, making it difficult to compare to the Semiconductor industry average (-30.5%).


Return on Equity

High ROE: MU's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Micron Technology's financial position?


Financial Position Analysis

Short Term Liabilities: MU's short term assets ($16.0B) exceed its short term liabilities ($5.8B).

Long Term Liabilities: MU's short term assets ($16.0B) exceed its long term liabilities ($6.7B).


Debt to Equity History and Analysis

Debt Level: MU's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: MU's debt to equity ratio has reduced from 43.8% to 13.3% over the past 5 years.

Debt Coverage: MU's debt is well covered by operating cash flow (181.7%).

Interest Coverage: MU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Micron Technology's current dividend yield, its reliability and sustainability?

0.13%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Sanjay Mehrotra (60yo)

2.92s

Tenure

US$16,944,751

Compensation

Mr. Sanjay Mehrotra serves as an Advisor at Bow Capital. He has been the Chief Executive Officer, President and Director at Micron Technology, Inc. since May 8, 2017. Mr. Mehrotra has several years of expe ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD16.94M) is above average for companies of similar size in the US market ($USD12.04M).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjay Mehrotra
CEO, President & Director2.92yrsUS$16.94m0.049% $25.2m
David Zinsner
Senior VP & CFO2.17yrsUS$4.31m0.010% $5.3m
Manish Bhatia
Executive Vice President of Global Operations2.5yrsUS$6.63m0.018% $9.5m
Scott DeBoer
Executive Vice President of Technology & Products2.83yrsUS$4.35m0.013% $6.9m
Sumit Sadana
Executive VP & Chief Business Officer2.83yrsUS$6.22m0.014% $7.2m
Paul Marosvari
VP & Chief Accounting Officer0.50yrno data0.00049% $252.7k
Trevor Schultz
Chief Information Officer & VP of Information Systems4.75yrsno datano data
Farhan Ahmad
Senior Director of Investor Relationsno datano datano data
Joel Poppen
Senior VP of Legal Affairs6.33yrsUS$2.98m0.025% $13.0m
Michael Bokan
Senior Vice President of Worldwide Sales1.5yrsno data0.0063% $3.2m

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: MU's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjay Mehrotra
CEO, President & Director2.92yrsUS$16.94m0.049% $25.2m
Robert Switz
Independent Chairman of the Board8.17yrsUS$543.67k0.0051% $2.6m
Robert Bailey
Independent Director13.25yrsUS$375.02k0.0097% $5.0m
Richard Beyer
Independent Director7.25yrsUS$395.02k0.0078% $4.0m
Steven Gomo
Independent Director1.5yrsUS$349.84k0.00095% $489.9k
Mary Wright
Independent Director0.75yrUS$62.05k0.00058% $299.1k
Mary McCarthy
Independent Director1.5yrsUS$340.51k0.00095% $489.9k

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: MU's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Micron Technology, Inc.
  • Ticker: MU
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$51.572b
  • Shares outstanding: 1.11b
  • Website: https://www.micron.com

Number of Employees


Location

  • Micron Technology, Inc.
  • 8000 South Federal Way
  • Boise
  • Idaho
  • 83716
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1984
MU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1984
MTEXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1984
MTEDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1984
MUSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1984
0R2TLSE (London Stock Exchange)YesCommon StockGBUSDJun 1984
MUBIT (Borsa Italiana)YesCommon StockITEURJun 1984
MUWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1984
MUTC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD0.10BRBRLMay 2019

Biography

Micron Technology, Inc. manufactures and sells memory and storage solutions worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint memory under the Micron, Crucial, and Ballistix brands, as well as private labels. The company provides memory products for the cloud server, enterprise, client, graphics, and networking markets; memory products for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; other discrete storage products in component and wafer forms for the removable storage markets, as well as 3D XPoint memory products; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its internal sales force, independent sales representatives, distributors, and e-tailers; and Web-based customer direct sales channel, as well as through channel and distribution partners primarily to original equipment manufacturers and retailers. The company has strategic collaboration with BMW Group. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:48
End of Day Share Price2020/04/06 00:00
Earnings2020/02/27
Annual Earnings2019/08/29


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.