Micron Stock Analysis, Valuation (NASDAQ:MU)

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$44.54 $0.36 (0.8%) MU stock closing price Feb 21, 2018 (Closing)
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Micron
Updated on : Feb 21, 2018
previous close
MU 44.5 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductors-Memory
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
23.6%
Operating Profit
Operating Margin:
37.2%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.06B
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
$3.64B
Net Income:
$2.68B
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MU PS :
2.2
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
34.6%
Return on Equity:
43%
Free Cash Flow Margin:
24.7%
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Micron Stock Analysis

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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 4.6/5

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 Q1 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 71.4% in 2018 Q1.
  • Revenue growth has been tremendous with a compounded annual growth of 23.6% over the last 5 years.
  • Micron's average operating margin of 37.2% was exceptional.
  • Net margins came in at average 32.8% for Micron over the last twelve months.
  • The Micron stock currently trades at a price to earnings ratio of 6.8. We rate this as a positive, compared to the industry average of 25.3.
  • Micron has an attractive ROIC (Return on Invested Capital) of 34.6%
  • Micron has a good Return On Equity (ROE) of 43%.
  • The company has a good Free Cash Flow (FCF) margin of 24.7%.

Should you sell MU stock?

  • Micron has a debt/equity ratio of  0.39, which is worse than the average in the Computer and Technology sector.

Comments on this video and Micron stock

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.