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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

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$277.06B
P/E
32.56
ROE
17.2%
Profit margin
22.8%
Debt/Equity
0.28
Dividend yield
0.19%

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 analysis across 5 key categories

Overall
56
Moderate
Value
55
Future
75
Past
70
Health
80
Dividend
0
AI Verdict
Micron Technology demonstrates strong cyclical performance and profitability, supported by robust growth and solid balance sheet metrics, but trades at a premium to peers and faces headwinds from insider selling and valuation concerns; while growth justifies some premium, the current price near 52-week highs and lack of earnings surprises suggest limited near-term upside.
Key drivers: Exceptional YoY earnings and revenue growth, Premium valuation relative to peers and historical norms, Bearish insider activity despite strong price momentum
Confidence
70%
Value
55/100

While MU's valuation is high, it is more justifiable within the context of the semiconductor sector, where peers like INTU trade at P/E of 48.30 despite lower growth, though MU's premium is less supported than CRM or QCOM on a growth-adjusted basis.

Positives
  • Forward P/E of 19.18 is reasonable given 46% revenue growth
  • P/B of 5.11 and P/S of 7.41 are in line with high-growth tech peers
Watchpoints
  • Current P/E of 32.56 is elevated relative to forward earnings and historical averages
  • Lack of EV/EBITDA and EV/Revenue metrics due to missing data limits valuation completeness
Future
75/100

The company is riding a powerful upcycle in DRAM and NAND pricing, with AI-driven demand providing structural support, and price momentum (up 28.6% in 1M) confirms strong investor sentiment.

Positives
  • 46% YoY revenue growth and 256.9% earnings growth indicate strong demand tailwinds
  • Q/Q earnings growth of 260.90% suggests accelerating momentum
Watchpoints
  • No recent earnings surprises may indicate guidance is conservative or growth is fully anticipated
  • Memory market cyclicality could lead to sharp downturns post-supply normalization
Past
70/100

Despite missing earnings surprises recently, MU has demonstrated strong historical profitability and margin expansion, with 1Y and 3Y returns significantly outperforming peers like CSCO and QCOM.

Positives
  • Consistent profitability with stable gross margin of 39.79% and rising operating leverage
  • Five-year return of +308.8% reflects strong long-term capital appreciation
Watchpoints
  • No earnings beats in the last 4 quarters, indicating potential execution or forecasting issues
  • Incomplete quarterly earnings history data limits trend analysis
Health
80/100

Micron’s balance sheet appears healthy relative to peers, with lower leverage than CSCO (0.60) and QCOM (0.74), though lack of cash/debt detail prevents full stress-testing of liquidity.

Positives
  • Low debt/equity ratio of 0.28, well below sector average of 0.74
  • Strong liquidity with current ratio of 2.52 and quick ratio of 1.71
Watchpoints
  • Missing total debt and cash figures limit ability to assess cash runway and refinancing risk
  • Capital-intensive nature of semiconductor manufacturing not fully captured in available data
Dividend
0/100

The dividend is functionally irrelevant for MU investors, with capital allocation clearly prioritized toward reinvestment and buybacks rather than shareholder yield.

Positives
  • Payout ratio of 6.06% indicates dividend is highly sustainable
Watchpoints
  • Dividend yield of 0.19% is negligible and offers no meaningful income
  • No history of dividend growth or consistency provided

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$246.83
Analyst Target
$212.92
Upside/Downside
-13.7%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for MU and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
MU
Micron Technology, Inc.
Primary
+308.8% +297.6% +149.9% +152.3% +28.6% +3.7%
IBM
International Business Machines Corporation
Peer
+232.3% +136.3% +50.0% +16.0% +9.5% +0.3%
CSCO
Cisco Systems, Inc.
Peer
+112.5% +89.6% +38.1% +24.1% +12.2% +9.8%
QCOM
QUALCOMM Incorporated
Peer
+29.9% +48.0% +8.5% +15.4% +6.8% +1.8%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
32.56
Forward P/E
19.18
PEG Ratio
N/A
P/B Ratio
5.11
P/S Ratio
7.41
EV/Revenue
7.55
EV/EBITDA
15.59
Market Cap
$277.06B

Profitability

Profit margins and return metrics

Profit Margin 22.84%
Operating Margin 32.64%
Gross Margin 39.79%
ROE 17.2%
ROA 8.05%

Growth

Revenue and earnings growth rates

Revenue Growth +46.0%
Earnings Growth +256.9%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +260.9%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.28
Low debt
Current Ratio
2.52
Strong
Quick Ratio
1.71
Excellent
Cash/Share
$9.18

Quarterly Earnings History

EPS performance vs analyst estimates

2025-12-17
$N/A
2025-09-23
$3.03
+5.9% surprise
2025-06-25
$1.91
+19.8% surprise
2025-03-20
$1.56
+9.5% surprise

Technology Sector Comparison

Comparing MU against 38 companies in the Technology sector (13 bullish, 18 neutral, 1 bearish)
P/E Ratio
32.56
This Stock
vs
114.31
Sector Avg
-71.5% (Discount)
Return on Equity (ROE)
17.2%
This Stock
vs
25.54%
Sector Avg
-32.7% (Below Avg)
Profit Margin
22.84%
This Stock
vs
17.79%
Sector Avg
+28.4% (Superior)
Debt to Equity
0.28
This Stock
vs
0.78
Sector Avg
-63.7% (Less Debt)
Revenue Growth
46.0%
This Stock
vs
19.4%
Sector Avg
+137.1% (Fast Growth)
Current Ratio
2.52
This Stock
vs
1.97
Sector Avg
+27.5% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
MU
Micron Technology, Inc.
NEUTRAL $277.06B 32.56 17.2% 22.8% $246.83
IBM
International Business...
NEUTRAL $285.74B 36.48 30.2% 12.1% $305.69
CSCO
Cisco Systems, Inc.
NEUTRAL $307.38B 30.12 22.4% 17.9% $78.0
CRM
Salesforce, Inc.
NEUTRAL $234.21B 35.71 11.2% 16.9% $246.02
QCOM
QUALCOMM Incorporated
NEUTRAL $186.89B 34.73 23.3% 12.5% $173.98

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-07 MEHROTRA SANJAY Chief Executive Officer Sale 12,500 $2,987,009
2025-11-03 SADANA SUMIT Officer Gift 4,500 -
2025-10-30 MURPHY MARK J Chief Financial Officer Sale 126,000 $28,389,111
2025-10-30 MEHROTRA SANJAY Chief Executive Officer Sale 22,500 $5,130,731
2025-10-29 MEHROTRA SANJAY Chief Executive Officer Gift 10,000 -
2025-10-27 MEHROTRA SANJAY Chief Executive Officer Gift 5,000 -
2025-10-27 DEBOER SCOTT J. Chief Technology Officer Sale 82,000 $18,270,420
2025-10-27 MEHROTRA SANJAY Chief Executive Officer Sale 22,500 $4,966,229
2025-10-21 MEHROTRA SANJAY Chief Executive Officer Sale 22,500 $4,592,228
2025-10-20 MEHROTRA SANJAY Chief Executive Officer Gift 10,000 -
2025-10-20 ALLEN SCOTT R Officer Sale 8,800 $1,848,176
2025-10-17 ALLEN SCOTT R Officer Stock Award 269 -
2025-10-16 RAY MICHAEL CHARLES Officer Sale 3,682 $742,384
2025-10-13 GOMO STEVEN J Director Stock Award 1,377 -
2025-10-13 MEHROTRA SANJAY Chief Executive Officer Stock Award 57,819 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
36 analysts
Morgan Stanley
2025-11-13
main
Overweight Overweight
Wells Fargo
2025-11-07
main
Overweight Overweight
Mizuho
2025-10-28
main
Outperform Outperform
Citigroup
2025-10-27
main
Buy Buy
Barclays
2025-10-20
main
Overweight Overweight
Mizuho
2025-10-17
main
Outperform Outperform
UBS
2025-10-16
main
Buy Buy
Citigroup
2025-10-16
main
Buy Buy
New Street Research
2025-10-14
down
Buy Neutral
Goldman Sachs
2025-10-09
main
Neutral Neutral