Micron Stock Analysis, Valuation (NASDAQ:MU)
Watch the robo advisor video of Micron stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for MU stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Micron Technology, Inc. Stock Rating 4.7/5
Amigobulls MU stock analysis uses latest quarter 2018 Q3 financial data like Micron revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Micron valuation analysis. Micron stock rating is our opinion about the business fundamentals of the company.
Should you buy MU stock?
- Micron sales grew by 40.1% year on year in 2018-05.
- Revenue growth has been tremendous with a compounded annual growth of 27.9 over the last 5 years.
- Micron had a healthy average operating margin of 46.71 over the last 4 quarters.
- Net margins came in at average 43.4% for Micron over the last twelve months.
- MU stock is trading at an earnings multiple of 4.6 which is better than the sector average of 25.4.
- MU stock is trading at a favorable price to sales multiple of 1.9 as against the Computer and Technology sector average multiple of 2.9.
- Micron has an attractive ROIC (Return on Invested Capital) of 47.7
- Micron has a good Return On Equity (ROE) of 52.5.
- Micron has a healthy FCF (Free Cash Flow) margin of 21.5.
Amigobulls Micron stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Micron revenue growth and profit or net income are two main metrics which help in identifying whether MU stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.