Micron Technology, Inc. (MU) Fundamental Checkup
Micron Technology, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 21, 2026.
By TGMCharts Research · Data as of · Updated
Micron Technology, Inc. shows a highly synchronized operating profile where a five-year sales expansion of 29.33% and per-share earnings growth of 25.98% are fully backed by free-cash-flow growth of 172.93% and a high return on invested capital of 44.25%.
The company's rapid operational expansion is paired with an exceptionally clean capital structure, evidenced by a debt-to-equity ratio of 0.06x and a current ratio of 3.42x. This financial flexibility minimizes structural risk, though the current equity price sits above the analyst DCF (FMP) reference value.
- Micron Technology, Inc. has market cap of $1.03T and closed at $967 on August 21, 2026.
- Five-year revenue CAGR is 29.33% and five-year EPS CAGR is 25.98%.
- Five-year free-cash-flow CAGR is 172.93%.
- Net margin is 55.91% and ROIC is 44.25%.
- Current ratio is 3.42x and debt-to-equity is 0.06x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating Operating Growth Against Market Pricing
Analyzing Micron Technology, Inc. requires evaluating whether its core expansion, cash generation, operating efficiency, and balance sheet strength present a unified fundamental narrative. With the equity valued at $967 as of August 21, 2026, our analysis begins by dissecting the underlying corporate performance before contrasting these achievements against prevailing market multiples.
This assessment hinges on a five-year revenue CAGR of 29.33% and a five-year EPS CAGR of 25.98%, verified against a five-year free-cash-flow CAGR of 172.93%. A rigorous fundamental framework avoids relying on a solitary growth metric, demanding instead that top-line gains translate efficiently into tangible liquidity.
Current compounder snapshot · MU
Live supporting context; not part of the article's frozen 2026-08-21 evidence snapshot.
- Score
- 58/100
- 10Y CAGR
- 8.7%
- Median YoY
- 31.6%
- YoY volatility
- σ 71.4pp· choppy
- Quarters ≥ 20%
- 23 of 40
- Negative quarters
- 11
- Valuation vs own 10Y history
- P/S 11.6x · 10Y median 2.8x · 98th percentile · as of Aug 24, 2026
How this score is computed
- Quarters at or above 20%: 23 of 40 → 23 of 40 pts
- Steadiness (typical swing 71.4pp) → 0 of 25 pts
- Pace (median 31.6% YoY) → 20 of 20 pts
- Latest quarter (345.7% YoY) → 15 of 15 pts
- Score: 58 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
A High-Level View of Semiconductor Capital Efficiency
As an operating entity in the Technology sector, the business must be scrutinized through objective measures of growth, margin sustainability, asset reinvestment, and capital structure. The fundamental snapshot below integrates market capitalization, valuation multiples, operational velocity, and balance sheet leverage to establish a baseline prior to examining specific historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
MU revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 29.33%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 29.33% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Translating Top-Line Momentum Into Per-Share Earnings
The core of growth conversion is whether expanding sales successfully filter down to net income for shareholders. A five-year revenue CAGR of 29.33% represents the primary demand signal, while a five-year EPS CAGR of 25.98% demonstrates the ultimate rate of bottom-line conversion. When earnings expansion trails or leads revenue growth, analysts must investigate whether the divergence stems from operating leverage, share count adjustments, or shifting cost inputs.
MU EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 25.98%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 25.98% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Reported Net Income With Free Cash Flow
Cash generation provides the most reliable reality check on any earnings-driven thesis. With a five-year free-cash-flow CAGR of 172.93%, the cash flow trajectory has outpaced accounting profits over the medium term. This strong cash conversion suggests that capital expenditure cycles have been highly disciplined, reducing the risk of phantom earnings that are not backed by real liquidity.
MU free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 172.93%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 172.93% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Returns On Invested Capital And Profit Margins
The durability of this expansion is determined by a net margin of 55.91% and an ROIC of 44.25%. High margins demonstrate excellent pricing execution and cost control relative to sales, while the return on invested capital confirms that management is deploying capital into projects that generate returns far above the corporate cost of capital.
MU net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 55.91%. The bars below are annual fiscal years.
Net margin of 55.91% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
MU ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 44.25%.
ROIC of 44.25% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Guardrails and Capital Structure Strength
Balance sheet design determines how well a company can withstand cyclical downturns without diluting equity holders. The current ratio of 3.42x points to a robust liquid cushion, while a debt-to-equity ratio of 0.06x indicates minimal reliance on long-term debt. This conservative capital structure ensures the firm retains strategic flexibility even if industry demand softens.
MU debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.06x.
Debt-to-equity of 0.06x and current ratio of 3.42x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Evaluating the Price Multiple Against Business Realities
Valuation metrics represent the hurdle rate the market demands the business to defend. Trading at a trailing price-to-earnings multiple of 21.88x and an earnings yield of 4.57%, the current market price sits above the analyst DCF (FMP) reference value. This premium indicates that investors have already priced in a significant portion of the company's historical growth and efficiency gains.
MU Price Chart
Latest close: $967 as of August 21, 2026.
The close at $967 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing High Returns Against Cyclical Reinvestment Risks
The optimistic scenario rests on sustained top-line momentum, high capital efficiency, and a pristine balance sheet that allows the business to reinvest through all phases of the industry cycle. Conversely, the primary risk is that capital-intensive capacity additions could outpace demand, causing cash generation to diverge from net income and leaving the current premium valuation vulnerable to multiple contraction.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 29.33% and five-year EPS CAGR of 25.98% support the business case.
- Net margin of 55.91% and ROIC of 44.25% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 172.93% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.06x and current ratio of 3.42x are the balance-sheet checks that can change the view.
Monitoring Key Operational Metrics Going Forward
A fundamental reassessment would be required if future quarterly updates show a deceleration in sales growth below the historical five-year average, or if capital expenditures begin to erode the current ROIC. This analysis serves as objective research context based on historical reporting and does not constitute personalized financial advice.
FAQ
What is the fundamental read on MU?
Micron Technology, Inc. is judged through revenue growth of 29.33%, EPS growth of 25.98%, free-cash-flow growth of 172.93%, net margin of 55.91%, and ROIC of 44.25%.
Which MU fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this MU checkup refresh?
Its figures are as of August 21, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 29.33%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 25.98%.
- ROIC or balance-sheet flexibility weakening from ROIC of 44.25% and debt-to-equity of 0.06x.
The bottom line
Micron Technology, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: MU fundamentalsContinue with Micron Technology, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-06-25 · period 2026-05-28 · SEC EDGAR source
- “Total revenue for the third quarter of 2026 increased 74% as compared to the second quarter of 2026, primarily due to increases in sales of both DRAM and NAND products.”
- “Sales of DRAM products increased 67%, primarily due to a low-60% range increase in average selling prices and a low-single-digit percentage range increase in bit shipments.”
- “Sales of NAND products increased 99%, primarily due to a mid-80% range increase in average selling prices and a mid-single-digit percentage range increase in bit shipments.”
- “Total revenue for the third quarter of 2026 increased 346% as compared to the third quarter of 2025, primarily due to increases in sales of both DRAM and NAND products.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.