MU Jumps 20% In A Week, Wait For A Dip To Buy The Stock

We believe there is not much to fear in MU stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $176 Bil in market cap, Micron Technology provides memory and storage products across compute, mobile, storage, and embedded markets, specializing in high-speed, low-latency DRAM semiconductor devices.

[1] Valuation Looks Very High

This table highlights how MU is valued vs broader market. For more details see: MU Valuation Ratios

[2] Growth Is Very Strong

• Micron Technology has seen its top line grow at an average rate of 10.6% over the last 3 years
• Its revenues have grown 58% from $21 Bil to $34 Bil in the last 12 months
• Also, its quarterly revenues grew 36.6% to $9.3 Bil in the most recent quarter from $6.8 Bil a year ago.

This table highlights how MU is growing vs broader market. For more details see: MU Revenue Comparison

[3] Profitability Appears Strong

• MU last 12 month operating income was $7.6 Bil representing operating margin of 22.4%
• With cash flow margin of 45.0%, it generated nearly $15 Bil in operating cash flow over this period
• For the same period, MU generated nearly $6.2 Bil in net income, suggesting net margin of about 18.4%

This table highlights how MU profitability vs broader market. For more details see: MU Operating Income Comparison

[4] Financial Stability Looks Very Strong

• MU Debt was $16 Bil at the end of the most recent quarter, while its current Market Cap is $176 Bil. This implies Debt-to-Equity Ratio of 9.2%
• MU Cash (including cash equivalents) makes up $11 Bil of $78 Bil in total Assets. This yields a Cash-to-Assets Ratio of 13.8%

[4] Downturn Resilience Is Very Weak

MU has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• MU stock fell 49.8% from a high of $97.36 on 14 January 2022 to $48.88 on 26 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 7 March 2024
• Since then, the stock increased to a high of $157.23 on 12 September 2025 $157.23

 
2020 Covid Pandemic

• MU stock fell 42.5% from a high of $59.99 on 19 February 2020 to $34.47 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 November 2020

 
2008 Global Financial Crisis

• MU stock fell 88.1% from a high of $14.23 on 12 January 2007 to $1.69 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 27 June 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read MU Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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