Micron Stock Analysis (NASDAQ:MU)
Micron Analysis Video
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%.