NasdaqGS:MU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

MU

0.09%

US Semiconductor

0.7%

US Market


1 Year Return

21.0%

MU

35.7%

US Semiconductor

13.7%

US Market

Return vs Industry: MU underperformed the US Semiconductor industry which returned 35.7% over the past year.

Return vs Market: MU exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

MUIndustryMarket
7 Day1.1%0.09%0.7%
30 Day9.8%9.2%4.7%
90 Day6.0%14.2%6.1%
1 Year21.0%21.0%38.4%35.7%16.2%13.7%
3 Year148.4%148.4%87.7%77.1%48.8%39.2%
5 Year39.1%39.1%139.7%115.5%62.5%44.5%

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 ($47.71) is trading below our estimate of fair value ($271.66)

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 (8.4x) compared to the Semiconductor industry average (29.9x).

PE vs Market: MU is good value based on its PE Ratio (8.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MU is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: MU is good value based on its PB Ratio (1.5x) compared to the US Semiconductor industry average (2.9x).


Next Steps

Future Growth

How is Micron Technology forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MU's forecast earnings growth (1.6% per year) is below the savings rate (2.7%).

Earnings vs Market: MU's earnings (1.6% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: MU's earnings are forecast to grow, but not significantly.

Revenue vs Market: MU's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MU's revenue (5.9% 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 (16.5%).


Next Steps

Past Performance

How has Micron Technology performed over the past 5 years?

40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MU has high quality earnings.

Growing Profit Margin: MU's current net profit margins (27%) are lower than last year (46.5%).


Past Earnings Growth Analysis

Earnings Trend: MU's earnings have grown significantly by 40% 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 (-55.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-11.6%).


Return on Equity

High ROE: MU's Return on Equity (17.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Micron Technology's financial position?


Financial Position Analysis

Short Term Liabilities: MU's short term assets ($16.5B) exceeds its short term liabilities ($6.4B)

Long Term Liabilities: MU's short term assets (16.5B) exceeds its long term liabilities (5.6B)


Debt to Equity History and Analysis

Debt Level: MU's debt to equity ratio (14.3%) is considered satisfactory

Reducing Debt: MU's debt to equity ratio has reduced from 48.8% to 14.3% over the past 5 years.

Debt Coverage: MU's debt is well covered by operating cash flow (250.7%).

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


Balance Sheet

Inventory Level: MU has a high level of physical assets or inventory.

Debt Coverage by Assets: MU's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Micron Technology's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Sanjay Mehrotra (60yo)

2.5yrs

Tenure

US$14,241,583

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 ($USD14.24M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Insufficient data to compare Sanjay's compensation with company performance.


Management Age and Tenure

2.4yrs

Average Tenure

54yo

Average Age

Experienced Management: MU's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MU's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: MU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,006,56615 Oct 19
Patrick Byrne
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23,264
Max PriceUS$43.27
SellUS$19,48902 Aug 19
Michael Bokan
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales
Shares427
Max PriceUS$45.64
SellUS$29,84902 Aug 19
Joel Poppen
EntityIndividual
Role
Chief Legal Officer
Senior VP of Legal Affairs
Shares654
Max PriceUS$45.64

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sanjay Mehrotra (60yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$14.24m
  • Trevor Schultz (77yo)

    Chief Information Officer & VP of Information Systems

    • Tenure: 4.3yrs
  • Sumit Sadana (50yo)

    Executive VP & Chief Business Officer

    • Tenure: 2.4yrs
    • Compensation: US$6.18m
  • Dave Zinsner (50yo)

    Senior VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$5.61m
  • Scott DeBoer (53yo)

    Executive Vice President of Technology & Products

    • Tenure: 2.4yrs
    • Compensation: US$4.09m
  • Mike Bokan (58yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 1.1yrs
  • Manish Bhatia (47yo)

    Executive Vice President of Global Operations

    • Tenure: 2.1yrs
    • Compensation: US$10.51m
  • Joel Poppen (55yo)

    Senior VP of Legal Affairs

    • Tenure: 5.9yrs
    • Compensation: US$2.98m
  • Farhan Ahmad

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Paul Marosvari

    VP & Chief Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Bob Switz (73yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$526.09k
  • Bob Bailey (62yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$373.21k
  • Sanjay Mehrotra (60yo)

    CEO, President & Director

    • Tenure: 2.5yrs
    • Compensation: US$14.24m
  • Rich Beyer (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$375.63k
  • Steve Gomo (67yo)

    Independent Director

    • Tenure: 1.1yrs
  • Pat Byrne (59yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$373.21k
  • Pat McCarthy (63yo)

    Independent Director

    • Tenure: 1.1yrs
  • MaryAnn Wright (57yo)

    Director

    • Tenure: 0.3yrs

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$52.817b
  • 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 Busine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:42
End of Day Share Price2019/11/15 00:00
Earnings2019/08/29
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.