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Micron Technology Inc MU

Morningstar Rating
$153.45 +5.62 (3.80%)
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Company Report

Micron Is a Cyclical Memory Chipmaker With Growing Exposure to AI

We see Micron Technology as a strong supplier of memory chips, but we don’t believe the firm holds an economic moat. Micron benefits from large scale, being the fifth-largest chipmaker in the world, but we don’t see enough scale to generate consistent economic profits. Micron holds a third-place market share in dynamic random access memory, or DRAM, chips and a fifth-place market share in not-and, and NAND, flash chips. We view both the DRAM and NAND markets as highly cyclical, and we expect Micron to thrive in periods of strong demand and pricing, but to be vulnerable to downcycles that compress shipments, prices, and profits.

Price vs Fair Value

MU is trading at a 48% premium.
Price
$153.45
Fair Value
$86.00
Uncertainty
High
1-Star Price
$643.00
5-Star Price
$28.00
Economic Moat
Cwfz
Capital Allocation
Knclqypq

Bulls Say, Bears Say

Bulls

When memory markets are in an upswing and demand is strong, Micron’s sales growth and profitability can be impressive.

Bears

Micron has a high fixed cost base that leaves it vulnerable to underutilization charges and major profit compression when memory markets enter a downturn.

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News

Trading Information

Previous Close Price
$147.83
Day Range
$151.51157.54
52-Week Range
$60.50157.54
Bid/Ask
$154.70 / $154.88
Market Cap
$169.93 Bil
Volume/Avg
42.2 Mil / 22.4 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
9.21
Dividend Yield (Trailing)
0.30%
Dividend Yield (Forward)
0.30%
Total Yield
0.30%

Company Profile

Micron is one of the largest semiconductor companies in the world, specializing in memory and storage chips. Its primary revenue stream comes from dynamic random access memory, or DRAM, and it also has minority exposure to not-and or NAND, flash chips. Micron serves a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications. The firm is vertically integrated.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Core
Total Number of Employees
43,000

Competitors

Valuation

Metric
MU
005930
000660
Price/Earnings (Normalized)
27.60
Price/Book Value
3.871.502.91
Price/Sales
9.211.784.02
Price/Cash Flow
31.549.1416.56
Price/Earnings
MU
005930
000660

Financial Strength

Metric
MU
005930
000660
Quick Ratio
2.131.780.77
Current Ratio
3.742.551.41
Interest Coverage
−8.0115.09−2.83
Quick Ratio
MU
005930
000660

Profitability

Metric
MU
005930
000660
Return on Assets (Normalized)
−4.01%4.72%−4.08%
Return on Equity (Normalized)
−5.85%6.10%−7.40%
Return on Invested Capital (Normalized)
−4.47%4.99%−3.51%
Return on Assets
MU
005930
000660
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