Micron Stock Analysis (NASDAQ:MU)

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$23.24 $0.24 (1.02%) MU stock closing price Feb 24, 2017 (Closing)
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Micron
Updated on : Feb 24, 2017
previous close
MU 23.2 (0%)
NASDAQ 5845.3 (0%)
Closing Price On: Feb 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductors-Memory
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
8.6%
Operating Profit
Operating Margin:
2.3%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
9.68B
Debt/Equity Ratio:
 0.74
Compared to the industry
Cash Flow
Operating cash flow:
$1.14B
Net Income:
$180M
PROS      CONS
Long Term Growth
Cash Flow
PS Valuation
Net Margins
High Debt Burden
ROE
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MU PS :
1.9
Industry PS :
2.5
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1%
Return on Equity:
-2.3%
Free Cash Flow Margin:
-3.2%
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Micron Analysis Video

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View Micron stock analysis video. This is our MU analyst opinion covering the buy and sell arguments for MU stock.

Micron Technology, Inc. Stock Rating (2/5)

Our Micron stock opinion is based on fundamentals of the company. This Micron stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy MU stock?

  • Revenue growth has been tremendous with a compounded annual growth of 8.6% over the last 5 years.
  • The company has an operating cash flow which is 6.3 times the net income.
  • The lower PS ratio 1.9 for MU stock versus Semiconductors-Memory industry average of 2.5 is a positive for the company.

Should you sell MU stock?

  • Over the last 12 months, Micron had an average Net loss of -2.3%.
  • Micron is debt laden and has a high debt/equity ratio of  0.74.
  • Trading at a PE ratio of 232.4, MU stock is overvalued in comparison to industry average multiple of 25.8.
  • Micron has a negative return on equity of -2.3%. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -3.2%.

Comments on this video and Micron stock

Mike-Zaman on Micron stock analysis ($27.13)
bullish
Watch Micron Technology, Inc. (MU) stock closely. After the closing bell on Wednesday, the company delivered better-than-expected numbers in its second quarter fiscal 2015 financial results.

Read more at Mike Zaman website http://mikezaman.com/33349/stocks/repros...
reply
charlie on Micron stock analysis ($33.05)
bullish
totally agree! any thoughts on nimble? flash storage company
reply