Micron Technology, Inc. (MU) – A better second half expected

Micron Technology, Inc. (MU) (Q2FY23)

Introduction

Micron Technology ,Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage 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, networking, industrial, and automotive 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; 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.

Highlights

According to the Cyberspace Administration of China, Micron’s memory chips are deemed to pose cybersecurity risks, leading to the prohibition of certain products. This ban poses a threat to Micron’s revenue stream.

Total fiscal Q2 revenue was approximately $3.7bn, down 10% sequentially and 53% Y/YDRAM revenue was $2.7bn, representing 74% of total revenue, whereas, NAND revenue was $885mn, representing 24% of Micron’s total revenue.

The company had an operating loss of roughly $2.1bn, resulting in an operating margin of -56%, down from -2% in the prior quarter and 35% in the prior year period.

Stock Performance

Micron Technology’s stock price increased by 16.91% in past 1-year. The stock has a 52-week high of $74.8 and its 52-week low is $48.4.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– PE Band Comparison
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages : 32

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