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Micron Technology Inc
MU : NASDAQ : Technology
$10.06 up0.06 | 0.60%
Today's Range: 10.01 - 10.40
Avg. Daily Volume: 24,025,600
05/05/16 - 3:59 PM ET

Financial Analysis


MICRON TECHNOLOGY INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. MICRON TECHNOLOGY INC has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.39% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2934.04166.0
EBITDA ($mil)775.01480.0
EBIT ($mil)1.0839.0
Net Income ($mil)-97.0934.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4035.04479.0
Total Assets ($mil)24819.023818.0
Total Debt ($mil)7619.06718.0
Equity ($mil)12303.012477.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin46.1149.11
EBITDA Margin26.4135.52
Operating Margin0.0320.14
Sales Turnover0.550.71
Return on Assets4.3116.34
Return on Equity8.731.2
Debt Q2 FY16 Q2 FY15
Current Ratio2.02.41
Debt/Capital0.380.35
Interest Expense97.083.0
Interest Coverage0.0110.11


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1037.01074.0
Div / share0.00.0
EPS-0.090.78
Book value / share11.8611.62
Institutional Own % n/a n/a
Avg Daily Volume2.3879396E72.4983168E7

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.97 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 0.98 indicates a significant discount versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 3.96. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MICRON TECHNOLOGY INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MU 12.36 Peers 20.97   MU 2.78 Peers 15.20

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MU is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MU is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MU 13.51 Peers 17.98   MU NM Peers 2.68

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MU is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MU's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MU 0.98 Peers 3.96   MU -71.17 Peers 28.70

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MU is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MU 0.88 Peers 4.06   MU -18.95 Peers 5.29

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MU is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MU significantly trails its peers on the basis of sales growth

 

 

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