The Most Important Facts About Micron Technology

Micron Technology logged a 5.1% change during today's afternoon session, and is now trading at a price of $67.64 per share.

Over the last year, Micron Technology logged a 5.0% change, with its stock price reaching a high of $74.77 and a low of $48.43. Over the same period, the stock returned a similar cumulative performance to the S&P 500. As of April 2023, the company's 50-day average price was $66.38.

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. Based in Boise, ID, the large-cap Technology company has 48,000 full time employees. Micron Technology has offered a 0.7% dividend yield over the last 12 months.

The Company Has a Positive Net Current Asset Value:

2019-08-31 2020-08-31 2021-08-31 2022-08-31
Revenue (MM) $23,406 $21,435 $27,705 $30,758
Gross Margins 45.7% 30.6% 37.6% 45.2%
Operating Margins 31.5% 14.0% 24.4% 31.7%
Net Margins 26.97% 12.54% 21.16% 28.24%
Net Income (MM) $6,313 $2,687 $5,861 $8,687
Net Interest Expense (MM) $77 -$80 -$146 -$93
Depreciation & Amort. (MM) -$5,473 -$5,650 -$6,214 -$7,116
Earnings Per Share $5.51 $2.37 $5.14 -$2.66
EPS Growth n/a -56.99% 116.88% -151.75%
Diluted Shares (MM) 1,143 1,131 1,141 1,095
Free Cash Flow (MM) $3,334 $83 $2,438 $3,114
Capital Expenditures (MM) -$9,855 -$8,223 -$10,030 -$12,067
Net Current Assets (MM) -$32,384 $3,283 $4,991 $5,405
Current Ratio 2.58 2.71 3.1 2.89
Long Term Debt (MM) $4,173 $6,373 $6,621 $6,803
Net Debt / EBITDA -0.13 -0.11 -0.08 -0.08

Micron Technology has growing revenues and increasing reinvestment in the business and an excellent current ratio. Additionally, the company's financial statements display low leverage and generally positive cash flows. However, the firm suffers from slimmer gross margins than its peers and declining EPS growth. Finally, we note that Micron Technology has average net margins with a stable trend.

Micron Technology does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at $-1.06. The average P/E ratio for the Technology sector is 27.16. On the other hand, the market is undervaluing Micron Technology in terms of its equity because its P/B ratio is 1.63. In comparison, the sector average is 6.23. In conclusion, Micron Technology's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.

Micron Technology Has an Analyst Consensus of Some Upside Potential:

The 30 analysts following Micron Technology have set target prices ranging from $42.43 to $100.0 per share, for an average of $75.03 with a buy rating. As of April 2023, the company is trading -11.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Micron Technology has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 84.7% of the company's shares, and the insider ownership rate stands at 0.28%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $6,286,909,550.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.