Micron Stock Analysis, Valuation (NASDAQ:MU)

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$44.25 $0.29 (0.65%) MU stock closing price Feb 22, 2018 (Closing)
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Micron
Updated on : Feb 22, 2018
previous close
MU 44.3 (0%)
NASDAQ 7210.1 (0%)
Closing Price On: Feb 22, 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?

  • Micron sales grew by 71.4% year on year in 2018 Q1.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 23.6%.
  • The TTM operating margin was good at 37.2% for Micron.
  • LTM Net margins were good at 32.8% for Micron.
  • MU stock is trading at an earnings multiple of 6.7 which is better than the industry average of 25.1.
  • Micron's return on invested capital of 34.6% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Micron at 43%.
  • The company has a healthy free cash flow margin of 24.7%.

Should you sell MU stock?

  • With a debt/equity ratio of  0.39, Micron is highly leveraged in comparison to Computer and Technology peers.

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.