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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
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- Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that MU's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.59 is high and demonstrates strong liquidity.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.4%. Since the same quarter one year prior, revenues fell by 12.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 36.80% is the gross profit margin for MICRON TECHNOLOGY INC which we consider to be strong. Regardless of MU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MU's net profit margin of -14.99% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $236.00 million or 41.58% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MICRON TECHNOLOGY INC has marginally lower results.
- 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.
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