Micron Technology Stock To $248?
Micron Technology (MU) stock has jumped 19% during the past month, and is currently trading at $285.41. Our multi-factor assessment suggests that it may be time to reduce exposure to MU stock. We are primarily concerned current valuation and a price of $248 may not be out of reach. 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.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Very Strong |
| Financial Stability | Very Strong |
| Downturn Resilience | Very Weak |
| Operating Performance | Strong |
| Stock Opinion | Relatively Expensive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $321 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.
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[1] Valuation Looks Very High
| MU | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 7.6 | 3.2 |
| Price-to-Earnings Ratio | 27.0 | 23.4 |
| Price-to-Free Cash Flow Ratio | 69.2 | 20.6 |
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 28.3% over the last 3 years
- Its revenues have grown 45% from $29 Bil to $42 Bil in the last 12 months
- Also, its quarterly revenues grew 56.7% to $14 Bil in the most recent quarter from $8.7 Bil a year ago.
| MU | S&P 500 | |
|---|---|---|
| 3-Year Average | 28.3% | 5.6% |
| Latest Twelve Months* | 45.4% | 6.2% |
| Most Recent Quarter (YoY)* | 56.7% | 7.3% |
This table highlights how MU is growing vs broader market. For more details see: MU Revenue Comparison
[3] Profitability Appears Very Strong
- MU last 12 month operating income was $14 Bil representing operating margin of 32.5%
- With cash flow margin of 53.6%, it generated nearly $23 Bil in operating cash flow over this period
- For the same period, MU generated nearly $12 Bil in net income, suggesting net margin of about 28.1%
| MU | S&P 500 | |
|---|---|---|
| Current Operating Margin | 32.5% | 18.8% |
| Current OCF Margin | 53.6% | 20.6% |
| Current Net Income Margin | 28.1% | 13.1% |
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 $12 Bil at the end of the most recent quarter, while its current Market Cap is $321 Bil. This implies Debt-to-Equity Ratio of 3.9%
- MU Cash (including cash equivalents) makes up $10 Bil of $86 Bil in total Assets. This yields a Cash-to-Assets Ratio of 12.0%
| MU | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 3.9% | 20.6% |
| Current Cash-to-Assets Ratio | 12.0% | 7.2% |
[5] 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 $294.37 on 29 December 2025 , and currently trades at $285.41
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.8% | -25.4% |
| Time to Full Recovery | 528 days | 464 days |
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
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.5% | -33.9% |
| Time to Full Recovery | 245 days | 148 days |
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
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -88.1% | -56.8% |
| Time to Full Recovery | 1,680 days | 1,480 days |
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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