MU Micron Technology, Inc. - Fundamental Analysis
NEUTRAL
MU Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Semiconductors
Current Price
$246.83
Analyst Target
$212.92
-13.7% Downside
52W High
$257.07
52W Low
$61.54
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Micron Technology trades at a premium valuation with strong recent price momentum, up 149.9% over the past year and nearing its 52-week high of $257.07, reflecting robust cyclical tailwinds in the semiconductor memory market. The company is delivering exceptional growth, with 46% YoY revenue growth and a staggering 256.9% earnings growth, supported by solid profitability metrics including a 32.64% operating margin and 17.20% ROE. However, elevated valuation multiples, lack of earnings estimate beats, and significant insider selling—particularly by top executives—raise caution despite a bullish analyst consensus. Relative to peers like CSCO and QCOM, MU exhibits superior growth but trades at a premium that may already price in much of the good news.
Key Strengths
Exceptional earnings growth of 256.9% YoY, significantly outpacing the sector average of 20.25%
Strong operating margin of 32.64%, well above the sector average of 16.89%
Robust financial health with a low debt/equity ratio of 0.28 and strong liquidity (current ratio: 2.52)
High profitability with ROE of 17.20% and ROA of 8.05%, indicating efficient capital use
Impressive 5-year total return of +308.8%, demonstrating strong shareholder value creation
Key Risks
Valuation appears stretched with a P/E of 32.56 and forward P/E of 19.18, despite high growth
No earnings estimate beats in the last 4 quarters, suggesting potential over-optimism or guidance tightening
Significant insider selling by C-suite executives totaling $66.93M in the last 6 months, signaling potential lack of confidence at the top
Lack of transparency in key financials (missing EV, cash, debt, shares outstanding) limits full due diligence
Dividend is negligible with a 0.19% yield and minimal payout ratio, offering little downside protection
AI Fair Value Estimate
Based on comprehensive analysis
$215.0
-12.9% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare MU against industry averages and similar companies
Insider Trading & Analyst Ratings
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