Micron Stock Analysis, Valuation (NASDAQ:MU)
Take a look at Amigobulls Micron stock analysis video. Our MU analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
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 4.5/5
Amigobulls MU stock analysis takes into account various financial ratios like relative valuation, Micron revenue, growth and return on equity based on latest quarter 2018 Q3 financial statements. We also check Micron dividend performance. Micron valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Micron stock rating which is indicative of the company's financial performance.
Should you buy MU stock?
- The Year Over Year (YoY) revenue growth for Micron was 40.1% in 2018-05.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 27.9.
- The TTM operating margin was good at 46.71 for Micron.
- Net margins stood at a healthy 43.4% (average) for Micron in the Trailing Twelve Months.
- The Micron stock currently trades at a price to earnings ratio of 5.5, compared to the sector average of 26.2. We rate this as a positive.
- Micron's return on invested capital of 47.7 is good.
- The LTM ROE of 52.5 for Micron is attractive.
- The company has a healthy free cash flow margin of 21.5.
Investors can make use of the Amigobulls Micron stock analysis to ascertain how MU stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.
Micron revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Micron stock.