Micron Technology MU
What does Micron Technology do?
Micron Technology develops and manufactures semiconductor memory and data storage products. Its offering includes DRAM, including high-bandwidth memory, DDR, low-power and graphics memory, as well as NAND products such as SSDs, managed NAND and multi-chip packages. NOR memory is also part of the range. Products are sold under the Micron brand and through private labels, partly directly through the company's own sales force and partly through distributors and partners.
The business is organized into four units: Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded. Customers include data center operators, server manufacturers, smartphone and PC producers, as well as the automotive industry and industrial companies. Competitively, Micron is one of the few large suppliers in the DRAM market, which it essentially shares with two Asian competitors. Competition is broader in the NAND segment. Technology leadership in manufacturing processes, capacity utilization and cost position largely determine its market standing.
Score profile
Rank vs. Semiconductors (40 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Micron Technology ranks among the best in the group Semiconductors (9.7/10). On growth, the company ranks among the best in the group Semiconductors (9.7/10). On valuation (higher = cheaper), the stock ranks among the best in the group Semiconductors (8.3/10). On financial strength, Micron Technology ranks above average in the group Semiconductors (6.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 3.5x | 18.7x | better than 99 % |
| Trailing P/E | 9.8x | 42.4x | better than 98 % |
| PEG ratio | 0.2x | 0.8x | better than 95 % |
| EV/EBITDA | 7.3x | 21.3x | better than 92 % |
| Price/sales | 6.2x | 5.8x | better than 44 % |
| Price/book | 5.9x | 5.1x | better than 37 % |
| Revenue growth | 379.3% | 25.5% | better than 99 % |
| Earnings growth | 1,059.5% | 7.4% | better than 96 % |
| Gross margin | 80.7% | 53.3% | better than 94 % |
| Operating margin | 80.7% | 15.5% | better than 99 % |
| Net margin | 63.8% | 10.3% | better than 99 % |
| Return on equity | 88.3% | 8.6% | better than 96 % |
| Debt/equity | 3.7% | 36.5% | better than 84 % |
| Current ratio | 3.3x | 3.3x | better than 49 % |
| Free cash flow yield | 3.6% | 1.3% | better than 73 % |
| Dividend yield | 0.1% | 1.2% | – |
| Payout ratio | 0.7% | 38.0% | – |
| Beta | 2.40 | 1.92 | – |
Valuation: what is Micron Technology worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Micron Technology a model range of 561.63 USD to 842.48 USD per share.
45 analysts, average rating “Strong buy”, average price target 1,561.91 USD (+115.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand for memory for data centers and AI applications significantly influences sales volumes and product mix.
- The balance of supply and demand in the memory market determines prices and thus margins.
- Progress in manufacturing technology and product mix, for example in high-bandwidth memory, supports cost position and earnings power.
Risks
- The memory industry is highly cyclical; price declines during overcapacity can quickly weigh on revenue and earnings.
- Fabrication facilities and development require high, permanently committed investment, which depresses profitability when demand is weak.
- Trade restrictions and geopolitical tensions, especially involving China and Taiwan, can disrupt sales and supply chains.
What to look for with Micron Technology
Gross margin is particularly informative because it combines price levels and cost position in the cyclical memory business and indicates where the industry cycle stands.