Micron Technology Inc. Stock Hold Recommendation Reiterated (MU)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Micron Technology (Nasdaq:MU) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

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Highlights from the ratings report include:

• Net operating cash flow has increased to $450.00 million or 27.11% when compared to the same quarter last year. In addition, MICRON TECHNOLOGY INC has also vastly surpassed the industry average cash flow growth rate of -26.82%.
• Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 80.0% when compared to the same quarter one year ago, falling from -$135.00 million to -$243.00 million.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.

Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Micron Technology has a market cap of $6.83 billion and is part of the technology sector and electronics industry. Shares are up 6.7% year to date as of the close of trading on Thursday.

You can view the full Micron Technology Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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For more information on Micron Technology Inc. click any of the following:

• Micron Technology Inc. Stock Price

• Micron Technology Inc. Analyst Ratings

• Micron Technology Inc. Key Stats & Profile

• Micron Technology Inc. Earnings

• Micron Technology Inc. Ratio Comparison

• Micron Technology Inc. Growth Rates

• Micron Technology Inc. Balance Sheet

• Micron Technology Inc. Cash Flow

• Micron Technology Inc. Income Statement