Micron Technology Inc

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MU : NASDAQ : Technology
$16.51 | %
Today's Range: 16.28 - 16.80
Avg. Daily Volume: 28,802,100
08/26/16 - 4:00 PM ET

Financial Analysis


MICRON TECHNOLOGY INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. MICRON TECHNOLOGY INC has strong liquidity. Currently, the Quick Ratio is 1.57 which shows 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 2.55% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2898.03853.0
EBITDA ($mil)723.01300.0
EBIT ($mil)-32.0627.0
Net Income ($mil)-215.0491.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4981.04860.0
Total Assets ($mil)27001.025136.0
Total Debt ($mil)9631.07551.0
Equity ($mil)12187.012506.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin43.2448.66
EBITDA Margin24.9433.73
Operating Margin-1.116.27
Sales Turnover0.470.67
Return on Assets1.3514.23
Return on Equity2.9928.61
Debt Q3 FY16 Q3 FY15
Current Ratio2.252.19
Debt/Capital0.440.38
Interest Expense109.097.0
Interest Coverage-0.296.46


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1037.01076.0
Div / share0.00.0
EPS-0.210.42
Book value / share11.7511.62
Institutional Own % n/a n/a
Avg Daily Volume2.8708816E72.3984562E7

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 41.69 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 1.34 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.32. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MU 50.87 Peers 41.69   MU 4.75 Peers 18.25

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MU is trading at a premium 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 28.67 Peers 19.44   MU NM Peers 2.67

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

MU's ratio is negative making this valuation measure meaningless.

 

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 1.34 Peers 4.32   MU -89.67 Peers -2.97

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 1.28 Peers 5.17   MU -24.01 Peers 3.93

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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