Micron Stock Analysis, Valuation (NASDAQ:MU)

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$35.43 $0.78 (2.25%) MU stock closing price Sep 18, 2017 (Closing)
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Micron
Updated on : Sep 18, 2017
previous close
MU 35.4 (0%)
NASDAQ 6454.6 (0%)
Closing Price On: Sep 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductors-Memory
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
15.5%
Operating Profit
Operating Margin:
19.2%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
11.67B
Debt/Equity Ratio:
 0.69
Compared to the industry
Cash Flow
Operating cash flow:
$2.41B
Net Income:
$1.65B
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MU PS :
2.3
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.8%
Return on Equity:
17.9%
Free Cash Flow Margin:
24.5%
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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 (3.9/5)

Our Micron stock opinion is based on fundamentals of the company. This Micron stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy MU stock?

  • The Year Over Year (YoY) revenue growth for Micron was 92.1% in 2017 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 15.5%.
  • The TTM operating margin was good at 19.2% for Micron.
  • LTM Net margins were good at 14.7% for Micron.
  • MU stock is trading at an earnings multiple of 14.8 which is better than the industry average of 26.5.
  • Micron has an attractive ROIC (Return on Invested Capital) of 14.8%
  • The LTM ROE of 17.9% for Micron is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 24.5%.

Should you sell MU stock?

  • With a debt/equity ratio of  0.69, Micron is highly leveraged in comparison to Computer and Technology peers.

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