Micron Technology, Inc.
Micron Technology, Inc. Fundamental Analysis
Micron Technology, Inc. (MU) shows strong financial fundamentals with a PE ratio of 40.20, profit margin of 28.15%, and ROE of 22.43%. The company generates $42.3B in annual revenue with strong year-over-year growth of 61.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 97.9/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze MU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMU demonstrates superior asset utilization.
Valuation Score
ModerateMU shows balanced valuation metrics.
Growth Score
ModerateMU shows steady but slowing expansion.
Financial Health Score
ExcellentMU maintains a strong and stable balance sheet.
Profitability Score
ExcellentMU achieves industry-leading margins.
Key Financial Metrics
Is MU Expensive or Cheap?
P/E Ratio
MU trades at 40.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MU's PEG of 1.03 indicates fair valuation.
Price to Book
The market values Micron Technology, Inc. at 8.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.18 times EBITDA. This signals the market has high growth expectations.
How Well Does MU Make Money?
Net Profit Margin
For every $100 in sales, Micron Technology, Inc. keeps $28.15 as profit after all expenses.
Operating Margin
Core operations generate 32.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.43 in profit for every $100 of shareholder equity.
ROA
Micron Technology, Inc. generates $13.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Micron Technology, Inc. generates strong operating cash flow of $22.70B, reflecting robust business health.
Free Cash Flow
Micron Technology, Inc. generates strong free cash flow of $11.92B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.59 in free cash annually.
FCF Yield
MU converts 2.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How MU Stacks Against Its Sector Peers
| Metric | MU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.20 | 35.19 | Worse (Expensive) |
| ROE | 22.43% | 1155.00% | Weak |
| Net Margin | 28.15% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.46 | 4.71 | Strong Liquidity |
| ROA | 13.85% | -314918.00% (disorted) | Strong |
MU outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Micron Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.16%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-87.58%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-34.97%
Industry Style: Growth, Innovation, High Beta
Declining