Stock in Focus: Micron Technology, Inc. (MU)

Company Profile:

Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It provides memory and storage technologies comprises DRAM products, which are dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; NAND products that are non-volatile and re-writeable semiconductor storage devices; and NOR memory products, which are non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, and networking markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; other discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

Recent News:

On May 11, 2022, the company announced it has surpassed 50,000 lifetime patents, reinforcing the company’s leadership in innovation. Patents play a key role in Micron’s technology leadership strategy, from creating the world’s smallest 256K DRAM chip in 1984, to delivering the first 1-alpha DRAM shipment in 2021—with thousands of inventions in between.

for its second quarter of fiscal 2022, the company reported revenue of $7.79 billion versus $7.69 billion for the prior quarter and $6.24 billion for the same period last year. GAAP net income of $2.26 billion, or $2.00 per diluted share. Operating cash flow of $3.63 billion versus $3.94 billion for the prior quarter and $3.06 billion for the same period last year.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

MU receives outperform rating in price to bookvalue, price to earnings and discounted cash flow. Technical indicators signal the bullish signs, as there is a bullish crossover in the MACD and the Stochastic oscillator. The RSI stands at 54.9 with positive bias. We rate Micron Technology, Inc. (MU) a BUY.

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