MICRON TECHNOLOGY INC (MU) Stock Analysis
MICRON TECHNOLOGY INC (MU) Stock Analysis
Analysis from 10-Q filed 2025-12-18. Data as of Q1 2026.
Overall Grade: F (Concerning)
MICRON TECHNOLOGY INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 34.8% | Above industry average |
| FCF Margin | 17.7% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 34.8% suggests durable competitive advantages and efficient capital allocation.
Explore MICRON TECHNOLOGY INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: MICRON TECHNOLOGY INC earns 34.8% ROIC, Top 5% in Technology
MICRON TECHNOLOGY INC's trailing-twelve-month ROIC of 34.8% ranks Top 5% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 41.7% combined with asset turnover of 0.7x. Source: 10-Q filed 2025-12-18. Gross margin of 58.4% with operating margin at 48.3% reflects strong pricing power.
| Metric | MU | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 34.8% | Excellent | Above sector median of 5.2% |
| Return on Equity (ROE) | 43.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 58.4% | Excellent | Strong pricing power |
| Operating Margin | 48.3% | Excellent | Efficient operations |
Cash Flow: MICRON TECHNOLOGY INC generates $10.3B FCF at 17.7% margin, positive NaN/8 quarters
MICRON TECHNOLOGY INC generated $10.3B in free cash flow (TTM), a 17.7% FCF margin, a margin that ranks Top 50% in Technology. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-18.
| Metric | MU | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 17.7% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $10.3B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: MICRON TECHNOLOGY INC at 0.1x leverage
MICRON TECHNOLOGY INC's debt-to-equity ratio of 0.1x reflects conservative leverage. Net cash position of $4.5B provides financial flexibility. Source: 10-Q filed 2025-12-18.
| Metric | MU | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $4.5B | Excellent | Net cash positive |
Valuation: MICRON TECHNOLOGY INC trades at 19.4x earnings
MICRON TECHNOLOGY INC trades at a P/E of 19.4x. Free cash flow yield of 2.2% reflects market expectations for growth.
| Metric | MU | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.4x | Adequate | Reasonable valuation |
| EV/Sales | 8.1x | Adequate | Growth premium priced in |
| FCF Yield | 2.2% | Adequate | Lower cash yield |
| Dividend Yield | 0.1% | Adequate | Growth focus over income |
Capital Allocation: MICRON TECHNOLOGY INC returns 4.9% shareholder yield
MICRON TECHNOLOGY INC's total shareholder yield is 4.9% (dividends 0.1% + buybacks 4.8%). Source: 10-Q filed 2025-12-18.
| Metric | MU | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.9% | Good | Dividend + buyback yield combined |
| Buyback Yield | 4.8% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $23.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 34.8% | Top 5% | 6.7x above |
| Free Cash Flow Margin | 17.7% | Top 50% | 1.9x above |
| Gross Margin | 58.4% | Top 50% | 1.1x above |
| Operating Margin | 48.3% | Top 5% | 10.0x above |
| Return on Equity (ROE) | 43.0% | Top 10% | 8.8x above |
| P/E Ratio | 19.4x | N/A | - |
Financial Scorecard
| Metric | MU | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 34.8% | Excellent | Top 5% of sector (median: 5.2%) |
| Free Cash Flow Margin | 17.7% | Good | Top 50% of sector (median: 9.1%) |
| Gross Margin | 58.4% | Excellent | Top 50% of sector (median: 51.8%) |
| Debt to Equity Ratio | 14.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 19.4x | Adequate | Fair value |
| Free Cash Flow Yield | 2.2% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is MICRON TECHNOLOGY INC's Return on Invested Capital (ROIC)?
MICRON TECHNOLOGY INC (MU) has a trailing twelve-month Return on Invested Capital (ROIC) of 34.8%. This compares above the sector median of 5.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is MICRON TECHNOLOGY INC's Free Cash Flow Margin?
MICRON TECHNOLOGY INC (MU) has a free cash flow margin of 17.7%, generating $10.3 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is MICRON TECHNOLOGY INC stock overvalued or undervalued?
MICRON TECHNOLOGY INC (MU) trades at a P/E ratio of 19.4x, which is above the sector median of N/A. The EV/Sales multiple is 8.1x. Free cash flow yield is 2.2%, reflecting growth expectations priced into the stock.
Q: Does MICRON TECHNOLOGY INC pay a dividend?
MICRON TECHNOLOGY INC (MU) currently pays a dividend yield of 0.1%. Including share buybacks, the total shareholder yield is 4.9%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is MICRON TECHNOLOGY INC's revenue and earnings growth?
MICRON TECHNOLOGY INC (MU) grew revenue by 85.5% year-over-year. Earnings per share increased by 406.9% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is MICRON TECHNOLOGY INC buying back stock?
MICRON TECHNOLOGY INC (MU) repurchased $22.5 billion of stock over the trailing twelve months. This represents a buyback yield of 4.8%.
Q: How does MICRON TECHNOLOGY INC compare to competitors in Technology?
Compared to other companies in Technology, MICRON TECHNOLOGY INC (MU) shows: ROIC of 34.8% is above the sector median of 5.2% (Top 1%). FCF margin of 17.7% exceeds the sector median of 9.1% (Top 30% of sector). Gross margin at 58.4% is 6.6 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with MICRON TECHNOLOGY INC?
MICRON TECHNOLOGY INC (MU) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-12-18. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.