Micron Technology Inc (MU) stock analysis

P/E below its 5-year median

Micron Technology's P/E of 10.9 is below its own 5-year median of 21.9.

P/E below the industry

Micron Technology's P/E of 10.9 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA below its 5-year median

Micron Technology's EV/EBITDA of 8.1 is below its 5-year median of 11.7.

P/B above the industry

Micron Technology's price-to-book of 6.63 is above the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $811.30 is below our fair value estimate of $1877.77.

Margin of safety over 20%

The price is 56.8% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 105% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 895% over the last twelve months, against a 5-year average of 70.7% a year.

Growing faster than the industry

Revenue grew 256% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (FQ1-27 Gross margin, Sep 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 80.7% over the last twelve months, against 39.8% a year earlier.

Return on equity over 15%

Return on equity was 88.3% over the last twelve months and averaged 22.7% over five years.

Return on capital over 10%

Return on invested capital was 107%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Micron Technology's return on equity of 88.3% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 70.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 63.8% over the last twelve months, against a 5-year average of 16.1%.

Net margin above the industry

Micron Technology's net margin of 63.8% is above the Electronic Components and Accessories median of 2.9%.

Low debt

Debt is 3.7% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 15.4% five years ago to 3.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1732% of total debt.

Interest well covered

Operating income covers interest expense 937.2 times.

Short-term assets cover short-term debts

Current assets are 3.31 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 13.26; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Micron Technology paid dividends worth 0.1% of the share price over the last twelve months.

Yield below Treasuries

The 0.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Micron Technology yields 0.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 0.7% of net income.

Covered by free cash flow

Dividends take 1.0% of free cash flow.