Micron Technology, Inc.MU
NASDAQ • Technology
$848.95
P/E
19.22
PEG
0.01
FCF Yield
2.7%
Rev Growth YoY
+345.7% YoY
Gross Margin
72.6%
Health Score
9/10
D/E Ratio
0.27
Confidence
MEDIUM
Business Snapshot
Micron Technology is a global leader in semiconductors, primarily producing memory and storage solutions such as DRAM, NAND flash, and SSDs. The company operates in the highly cyclical semiconductor market, holding a dominant competitive position alongside Samsung and SK Hynix. With a market cap of $958.80B, it is a mega-cap company, generating TTM revenue of $90.27B. The defining characteristic of Micron is its exposure to volatile memory pricing cycles, which can dramatically swing revenue and profitability.
Financial Health
Micron's financial health is robust, driven by a gross margin of 72.6% and a net margin of 55.9%, indicating strong pricing power and operational efficiency. The debt-to-equity ratio of 0.27x and a current ratio of 2.52x point to a fortress-like balance sheet with low leverage and ample short-term liquidity...
Risk Assessment
- VALUATION DIVERGENCE — The current price is at a significant 53.4% premium to the Python DCF estimate of $553.45, suggesting potential overvaluation if the model's assumptions hold.
- EARNINGS QUALITY — Reported Revenue growth YoY (345.7%) and earnings growth (1369.0%) are flagged as potentially distorted, introducing uncertainty around the quality and reliability of the company's growth trajectory.
- TECHNICALS — The stock price of $848.95 is below the 50-day moving average of $933.57, a bearish short-term signal, while the MACD indicator is also bearish.
- 52-WEEK POSITION — The current price of $848.95 is well below the 52-week midpoint of $679.19, and significantly down from the 52-week high of $1,255.00, indicating substantial recent price weakness.
- INSIDER ACTIVITY — Over the last 90 days, there have been 10 insider sells with 0 insider buys, a cautious signal that could indicate sentiment from company executives....
Micron's financial health is robust, driven by a gross margin of 72.6% and a net margin of 55.9%, indicating strong pricing power and operational efficiency. The debt-to-equity ratio of 0.27x and a current ratio of 2.52x point to a fortress-like balance sheet with low leverage and ample short-term liquidity. The company generated $26.17B in free cash flow, resulting in a 2.7% FCF yield, demonstrating significant cash generation. Overall, this financial strength provides substantial capacity for reinvestment in R&D and manufacturing, as well as potential for shareholder returns.
* VALUATION DIVERGENCE — The current price is at a significant 53.4% premium to the Python DCF estimate of $553.45, suggesting potential overvaluation if the model's assumptions hold. * EARNINGS QUALITY — Reported Revenue growth YoY (345.7%) and earnings growth (1369.0%) are flagged as potentially distorted, introducing uncertainty around the quality and reliability of the company's growth trajectory. * TECHNICALS — The stock price of $848.95 is below the 50-day moving average of $933.57, a bearish short-term signal, while the MACD indicator is also bearish. * 52-WEEK POSITION — The current price of $848.95 is well below the 52-week midpoint of $679.19, and significantly down from the 52-week high of $1,255.00, indicating substantial recent price weakness. * INSIDER ACTIVITY — Over the last 90 days, there have been 10 insider sells with 0 insider buys, a cautious signal that could indicate sentiment from company executives.
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