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Attractive stocks have exceptional fundamentals. In the case of Micron Technology, Inc. (NASDAQ:MU), there's is a company with great financial health as well as a a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Micron Technology here.
Flawless balance sheet with proven track record
MU delivered a satisfying double-digit returns of 37% in the most recent year Unsurprisingly, MU surpassed the Semiconductor industry return of 16%, which gives us more confidence of the company's capacity to drive earnings going forward. MU's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that MU has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. MU seems to have put its debt to good use, generating operating cash levels of 2.83x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Micron Technology, there are three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MU’s future growth? Take a look at our free research report of analyst consensus for MU’s outlook.
- Valuation: What is MU worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MU is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MU? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.