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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.67
MU's Cash to Debt is ranked lower than
57% of the 1013 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 4.92 vs. MU: 0.67 )
MU' s 10-Year Cash to Debt Range
Min: 0.32   Max: 8.42
Current: 0.67

0.32
8.42
Equity to Asset 0.47
MU's Equity to Asset is ranked lower than
55% of the 1005 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 0.65 vs. MU: 0.47 )
MU' s 10-Year Equity to Asset Range
Min: 0.4   Max: 0.86
Current: 0.47

0.4
0.86
Interest Coverage 1.02
MU's Interest Coverage is ranked lower than
69% of the 571 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 464.62 vs. MU: 1.02 )
MU' s 10-Year Interest Coverage Range
Min: 1.02   Max: 24.44
Current: 1.02

1.02
24.44
F-Score: 7
Z-Score: 2.42
M-Score: -2.21
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 2.60
MU's Operating margin (%) is ranked higher than
65% of the 989 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 2.37 vs. MU: 2.60 )
MU' s 10-Year Operating margin (%) Range
Min: -39.6   Max: 43.91
Current: 2.6

-39.6
43.91
Net-margin (%) 13.12
MU's Net-margin (%) is ranked higher than
88% of the 989 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.59 vs. MU: 13.12 )
MU' s 10-Year Net-margin (%) Range
Min: -41.19   Max: 28.59
Current: 13.12

-41.19
28.59
ROE (%) 13.02
MU's ROE (%) is ranked higher than
88% of the 984 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 2.33 vs. MU: 13.02 )
MU' s 10-Year ROE (%) Range
Min: -38   Max: 44.52
Current: 13.02

-38
44.52
ROA (%) 6.22
MU's ROA (%) is ranked higher than
82% of the 998 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.20 vs. MU: 6.22 )
MU' s 10-Year ROA (%) Range
Min: -17.79   Max: 30.42
Current: 6.22

-17.79
30.42
ROC (Joel Greenblatt) (%) 2.17
MU's ROC (Joel Greenblatt) (%) is ranked higher than
60% of the 998 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 4.03 vs. MU: 2.17 )
MU' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -25.13   Max: 84.98
Current: 2.17

-25.13
84.98
Revenue Growth (%) 2.10
MU's Revenue Growth (%) is ranked higher than
74% of the 705 Companies
in the Global Semiconductor Memory industry.

( Industry Median: -0.60 vs. MU: 2.10 )
MU' s 10-Year Revenue Growth (%) Range
Min: -21.5   Max: 20.5
Current: 2.1

-21.5
20.5
EBITDA Growth (%) -6.40
MU's EBITDA Growth (%) is ranked higher than
69% of the 471 Companies
in the Global Semiconductor Memory industry.

( Industry Median: -4.80 vs. MU: -6.40 )
MU' s 10-Year EBITDA Growth (%) Range
Min: -75.9   Max: 210.7
Current: -6.4

-75.9
210.7
EPS Growth (%) -13.70
MU's EPS Growth (%) is ranked higher than
63% of the 412 Companies
in the Global Semiconductor Memory industry.

( Industry Median: -4.00 vs. MU: -13.70 )
MU' s 10-Year EPS Growth (%) Range
Min: -23.8   Max: 139.4
Current: -13.7

-23.8
139.4
» MU's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

MU Guru Trades in Q1 2013

Caxton Associates 800,000 sh (New)
Robert Karr 8,536,697 sh (New)
Steven Cohen 18,881,594 sh (+299.9%)
Donald Smith 26,228,840 sh (+8.55%)
PRIMECAP Management 33,028,281 sh (+4.13%)
Paul Singer 100,000 sh (unchged)
Jim Simons Sold Out
Arnold Schneider Sold Out
George Soros 500,000 sh (-63.41%)
» More
Q2 2013

MU Guru Trades in Q2 2013

Seth Klarman 41,500,000 sh (New)
Jeremy Grantham 311,200 sh (New)
Ray Dalio 1,219,160 sh (New)
Ken Heebner 1,180,000 sh (New)
John Burbank 17,864 sh (New)
Andreas Halvorsen 7,461,600 sh (New)
Paul Tudor Jones 25,000 sh (New)
George Soros 2,000,000 sh (+300%)
PRIMECAP Management 34,968,035 sh (+5.87%)
Donald Smith 27,025,194 sh (+3.04%)
Steven Cohen 5,050,000 sh (unchged)
Caxton Associates Sold Out
Steven Cohen 16,236,800 sh (-14.01%)
Robert Karr 5,386,697 sh (-36.9%)
» More
Q3 2013

MU Guru Trades in Q3 2013

David Einhorn 23,020,200 sh (New)
Jim Simons 2,361,836 sh (New)
Andreas Halvorsen 37,349,100 sh (+400.55%)
Ken Heebner 5,735,000 sh (+386.02%)
Ray Dalio 1,997,717 sh (+63.86%)
Seth Klarman 64,000,000 sh (+54.22%)
Jeremy Grantham 406,000 sh (+30.46%)
Paul Tudor Jones 30,800 sh (+23.2%)
PRIMECAP Management 35,482,335 sh (+1.47%)
Steven Cohen 3,550,000 sh (unchged)
John Burbank Sold Out
Robert Karr 4,828,697 sh (-10.36%)
Donald Smith 22,502,594 sh (-16.73%)
Steven Cohen 12,168,826 sh (-25.05%)
George Soros 1,150,000 sh (-42.5%)
» More
Q4 2013

MU Guru Trades in Q4 2013

Caxton Associates 72,878 sh (New)
Whitney Tilson 100,000 sh (New)
RS Investment Management 321,100 sh (New)
Chuck Royce 5,800 sh (New)
Louis Moore Bacon 648,183 sh (New)
Paul Tudor Jones 92,767 sh (+201.19%)
David Einhorn 47,700,200 sh (+107.21%)
Jeremy Grantham 521,847 sh (+28.53%)
Steven Cohen 4,272,600 sh (unchged)
PRIMECAP Management 35,282,035 sh (-0.56%)
Donald Smith 20,320,887 sh (-9.7%)
Seth Klarman 51,655,434 sh (-19.29%)
Andreas Halvorsen 28,160,135 sh (-24.6%)
Ken Heebner 4,240,000 sh (-26.07%)
Steven Cohen 7,297,432 sh (-40.03%)
Robert Karr 2,361,697 sh (-51.09%)
Jim Simons 805,636 sh (-65.89%)
Ray Dalio 664,217 sh (-66.75%)
George Soros 200,000 sh (-82.61%)
» More
» Details

Insider Trades

Latest Guru Trades with MU

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Seth Klarman 2013-12-31 Reduce -19.29%6.17%$16.551 - $23.14 $ 23.9123%51655434
Donald Smith 2013-12-31 Reduce -9.7%0.81%$16.551 - $23.14 $ 23.9123%20320887
Ray Dalio 2013-12-31 Reduce -66.75%0.19%$16.551 - $23.14 $ 23.9123%664217
George Soros 2013-12-31 Reduce -82.61%0.18%$16.551 - $23.14 $ 23.9123%200000
Seth Klarman 2013-09-30 Add 54.22%11.25%$12.47 - $17.62 $ 23.9165%64000000
Donald Smith 2013-09-30 Reduce -16.73%1.41%$12.47 - $17.62 $ 23.9165%22502594
George Soros 2013-09-30 Reduce -42.5%0.13%$12.47 - $17.62 $ 23.9165%1150000
Ray Dalio 2013-09-30 Add 63.86%0.11%$12.47 - $17.62 $ 23.9165%1997717
John Burbank 2013-09-30 Sold Out 0.01%$12.47 - $17.62 $ 23.9165%0
Seth Klarman 2013-06-30 New Buy14.8%$9.1 - $14.34 $ 23.91116%41500000
Donald Smith 2013-06-30 Add 3.04%0.25%$9.1 - $14.34 $ 23.91116%27025194
George Soros 2013-06-30 Add 300%0.23%$9.1 - $14.34 $ 23.91116%2000000
Ray Dalio 2013-06-30 New Buy0.15%$9.1 - $14.34 $ 23.91116%1219160
John Burbank 2013-06-30 New Buy0.01%$9.1 - $14.34 $ 23.91116%17864
Donald Smith 2013-03-31 Add 8.55%0.45%$6.34 - $10.04 $ 23.91191%26228840
George Soros 2013-03-31 Reduce -63.41%0.06%$6.34 - $10.04 $ 23.91191%500000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Micron Technology, Inc.

David Einhorn Comments on Micron Technologies - Jan 23, 2014

MU (MU) is a manufacturer of semiconductor memory chips (DRAM and NAND flash). This isn't our first go-round with MU; it was a large short position from January 2001 to February 2005. Back then, DRAM was a lousy industry with too many competitors selling an undifferentiated product, often below cost. In the first quarter of 2001 when the shares were trading in the low $40s we wrote:

MU is valued at 6.5x current run-rate revenues and, today, generates no profits. In its best year ever (fiscal 2000), MU recorded $2.52 per share of earnings, making the current price 17x the peak earnings of a cyclical, commodity manufacturer. In the previous two years, MU lost money.

At the time, the valuation was kept aloft by the hopes and dreams of sell-side analysts. In our next letter we shared the following anecdote:

In an exchange of e-mails with a leading sell-side analyst who recommends purchase of MU with a $70 per share target, we solicited his justification for the current $24 billion market capitalization (let alone the $40 billion suggested by his target.) Our analyst friend explained he tried to use cyclical valuation methodologies to come up with a rationale for buying the stock but failed because such an approach suggests "the stock should trade in the teens." However, he maintains, should we have a good pricing environment next year, "people will treat the stock the same way [as they have] and take it much higher than they should." Lest we be unclear about his raison d'être, he added he "could just perennially stamp an underperform on MU because he can't justify the $24 billion, but that would be boring." He need not worry; we are fans of boring.

This sort of unchecked cheerleading among sell-side analysts is by no means gone. Today, they spin different fables to justify otherwise inexplicable valuations for the latest flavor-of-the-month stocks. As for MU, a decade of poor results exposed every flaw in the business and killed any love for the stock. The sell-side groupthink has reversed: the mostly bearish analysts now contort themselves to justify earnings estimates that are too low, price targets that are too pessimistic, and stock ratings that are too negative.

We established a position in MU at an average price of $16.49, marking the first time we have taken a long position in a company in which we once had a material short position. The industry has changed and so has MU. Its purchase of Elpida Memory out of bankruptcy in August 2013 marks the end of a decade of consolidation from roughly a dozen major DRAM players down to just three. Technological advances and locked-up intellectual property have made it unlikely that any new players will enter the industry in the intermediate term. MU and its competitors have signaled that they will refrain from adding capacity and will instead prioritize economic value-add. For the first time in memory, MU intends to use its excess cash flow to shrink the outstanding share count rather than build new factories. We believe the company will approach $4 per share of earnings and free cash flow in calendar 2014, and should enjoy a better multiple as investors begin to appreciate the new dynamic. The shares ended the quarter at $21.75.

 

From David Einhorn (Trades, Portfolio)'s fourth quarter 2013 commentary.

Check out David Einhorn latest stock trades

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Ratios

vs
industry
vs
history
P/E(ttm) 15.40
MU's P/E(ttm) is ranked higher than
81% of the 578 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 24.80 vs. MU: 15.40 )
MU' s 10-Year P/E(ttm) Range
Min: 3.54   Max: 115.75
Current: 15.4

3.54
115.75
P/B 2.60
MU's P/B is ranked lower than
59% of the 982 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.79 vs. MU: 2.60 )
MU' s 10-Year P/B Range
Min: 0.26   Max: 2.88
Current: 2.6

0.26
2.88
P/S 2.10
MU's P/S is ranked lower than
55% of the 1019 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.65 vs. MU: 2.10 )
MU' s 10-Year P/S Range
Min: 0.25   Max: 3.01
Current: 2.1

0.25
3.01
PFCF 15.60
MU's PFCF is ranked higher than
71% of the 525 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 20.00 vs. MU: 15.60 )
MU' s 10-Year PFCF Range
Min: 2.77   Max: 411.67
Current: 15.6

2.77
411.67
EV-to-EBIT 30.30
MU's EV-to-EBIT is ranked lower than
59% of the 698 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 20.80 vs. MU: 30.30 )
MU' s 10-Year EV-to-EBIT Range
Min: 4   Max: 565.7
Current: 30.3

4
565.7
PEG 0.60
MU's PEG is ranked higher than
84% of the 261 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.88 vs. MU: 0.60 )
MU' s 10-Year PEG Range
Min: 0.43   Max: 2.84
Current: 0.6

0.43
2.84

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.90
MU's Price/Tangible Book is ranked lower than
54% of the 969 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 2.00 vs. MU: 2.90 )
MU' s 10-Year Price/Tangible Book Range
Min: 0.41   Max: 8.56
Current: 2.9

0.41
8.56
Price/DCF (Projected) 2.00
MU's Price/DCF (Projected) is ranked higher than
53% of the 374 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.50 vs. MU: 2.00 )
MU' s 10-Year Price/DCF (Projected) Range
Min: 0.95   Max: 14.19
Current: 2

0.95
14.19
Price/Median PS Value 1.60
MU's Price/Median PS Value is ranked lower than
62% of the 952 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.10 vs. MU: 1.60 )
MU' s 10-Year Price/Median PS Value Range
Min: 0.25   Max: 6.71
Current: 1.6

0.25
6.71
Price/Peter Lynch Fair Value 0.70
MU's Price/Peter Lynch Fair Value is ranked higher than
91% of the 117 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.70 vs. MU: 0.70 )
MU' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.57   Max: 7.18
Current: 0.7

0.57
7.18
Price/Graham Number 1.30
MU's Price/Graham Number is ranked higher than
69% of the 583 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.60 vs. MU: 1.30 )
MU' s 10-Year Price/Graham Number Range
Min: 0.35   Max: 3.68
Current: 1.3

0.35
3.68
Earnings Yield (Greenblatt) 3.30
MU's Earnings Yield (Greenblatt) is ranked lower than
54% of the 750 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 4.60 vs. MU: 3.30 )
MU' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 25.3
Current: 3.3

0.2
25.3
Forward Rate of Return (Yacktman) 24.70
MU's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 572 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.20 vs. MU: 24.70 )
MU' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -36.1   Max: 36.1
Current: 24.7

-36.1
36.1

Business Description

Industry: Semiconductors » Semiconductor Memory
Compare:CODE, RMBS, RMTR, LEDS, NLST » details
Traded in other countries:MTE.Germany
Micron Technology, Inc. is a Delaware Corporation which was incorporated in 1978. The Company is global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, automotive, industrial, embedded and mobile products. In addition, it manufactures semiconductor components for CMOS image sensors and other semiconductor products. The Company markets its products through its internal sales force, independent sales representatives and distributors primarily to original equipment manufacturers ("OEMs") and retailers located around the world. The Company obtains products from three primary sources: (1) production from its wholly-owned manufacturing facilities, (2) production from its joint venture manufacturing facilities, and (3) to a lesser degree, from third party manufacturers. The Company has four reportable segments: NAND Solutions Group, DRAM Solutions Group, Wireless Solutions Group, and Embedded Solutions Group. NAND Solutions Group includes high-volume NAND Flash products sold into data storage, personal music players and the high-density computing market, as well as NAND Flash products sold to Intel Corporation ("Intel") through IM Flash. DRAM Solutions Group includes DRAM products sold to the PC, consumer electronics, networking and server markets. Wireless Solutions Group includes DRAM, NAND Flash and NOR Flash products, including multi-chip packages, sold to the mobile device market. Embedded Solutions Group includes DRAM, NAND Flash and NOR Flash products sold into automotive and industrial applications, as well as NOR and NAND Flash sold to consumer electronics, networking, PC and server markets. The Company's manufacturing facilities are located in the United States, China, Israel, Italy, Malaysia, Puerto Rico and Singapore. Its semiconductor memory products are offered under the Micron, Lexar, Crucial, SpecTek and Numonyx brand names and private labels. The Company faces intense competition in the semiconductor memory market from a number of companies, including Elpida Memory, Inc.; Samsung Electronics Co., Ltd.; SanDisk Corporation; SK Hynix Inc.; Spansion Inc. and Toshiba Corporation.

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Tsang
ReplyTsang - 3 months ago
ann over priced stock

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