Despite Flat Revenues, Micron Technology Stock Has Doubled Since 2018: Here’s Why

MU: Micron Technology logo
Micron Technology

Micron Technology (NASDAQ: MU) stock price rose more than 2x from around $32 in 2018 end to almost $70 currently, primarily due to favorable changes in its P/S multiple. This comes as a surprise as the company has witnessed only a marginal rise in revenues over this period, and a slight drop in the outstanding share count.

In our interactive dashboard, Why Micron Technology Stock Moved: MU Stock Has Gained 118% Since 2018, we break down the factors behind this move.

(A) MU’s Total Revenue has grown just 2.6% from $30.4 billion in 2018 to $31.2 billion on an LTM basis

  • MU’s total revenue initially dropped from $30.4 billion in FY ’18 (MU’s fiscal year ends in August) to $21.4 billion in FY ’20, primarily due to a combination of the semiconductor supply glut and the pandemic affecting demand.
  • Revenues then surged to $27.7 billion in FY ’21, and currently stand higher at $31.2 billion on an LTM basis.
  • The DRAM semiconductor segment makes up the bulk of Micron’s revenues, with $20 billion of the company’s sales coming from DRAM products as of FY ’21, making up over 70% of total revenue.
  • For details about MU revenues and comparison to peers, see Micron Technology (MU) Revenue Comparison
Relevant Articles
  1. Micron Technology Stock Has Outperformed The S&P Despite Flat Sales Since 2018 – Here’s Why
  2. What’s Behind Micron Technology Stock’s Strong Outperformance Since 2018?
  3. Company Of The Day: Micron
  4. Why Has Micron Technology Stock Returned 2.5x Since 2018 Despite Stagnant Revenue Growth?
  5. Following Strong Earnings Release, Micron Technology Stock Looks Set To Extend Its Rally
  6. Company Of The Day: Micron

(B) Revenue per share (RPS) increased 5.5% from $26.38 in 2018 to $27.82 currently

  • MU revenue rose from $30.4 billion in 2018 to $31.2 billion currently, while the outstanding share count decreased from 1.2 billion in 2018 to 1.1 billion currently.
  • Due to this, RPS has risen around 5.5% from $26.38 in FY ’18 to $27.82 currently.

(C) Price-To-Sales (P/S) multiple for MU rose strongly from 1.2x in 2018 to 3.9x by 2020 end, but has pulled back to 2.5x currently, still more than 2x higher than its 2018 level

  • Despite Micron’s inconsistent performance since 2018-end, its P/S multiple increased from 1.2x in 2018 to almost 4x in 2020.
  • However, with current supply chain concerns and ongoing geopolitical tensions, the P/S multiple has pulled back and currently stands at around 2.5x.
  • For additional details about the company stock returns and comparison to peers, see Micron Technology (MU) Stock Return Comparison.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Apr 2022
MTD [1]
YTD [1]
Total [2]
 MU Return -10% -25% 220%
 S&P 500 Return -5% -10% 92%
 Trefis Multi-Strategy Portfolio -6% -14% 240%

[1] Month-to-date and year-to-date as of 4/25/2022
[2] Cumulative total returns since the end of 2016


Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates