Performance Comparison: Micron Technology And Competitors In Semiconductors & Semiconductor Equipment Industry

In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Micron Technology (NASDAQ:MU) in relation to its major competitors in the Semiconductors & Semiconductor Equipment industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.

Micron Technology Background

Micron is one of the largest semiconductor companies in the world, specializing in memory and storage chips. Its primary revenue stream comes from dynamic random access memory, or DRAM, and it also has minority exposure to not-and or NAND, flash chips. Micron serves a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications. The firm is vertically integrated.

Company	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross Profit (in billions)	Revenue Growth
Micron Technology Inc	27.82	5.60	7.81	9.28%	$8.35	$7.65	56.65%
NVIDIA Corp	46.42	38.34	24.64	29.14%	$38.75	$41.85	62.49%
Broadcom Inc	73.34	20.40	26.58	11.02%	$9.86	$12.25	28.18%
Taiwan Semiconductor Manufacturing Co Ltd	31.04	9.76	13.44	9.44%	$691.11	$588.54	30.31%
Advanced Micro Devices Inc	112.74	5.77	10.98	2.06%	$2.11	$4.78	35.59%
Qualcomm Inc	34.66	8.77	4.33	-12.88%	$3.51	$6.24	10.03%
Intel Corp	621.67	1.67	3.07	3.98%	$7.85	$5.22	2.78%
Texas Instruments Inc	31.95	9.59	9.30	8.21%	$2.24	$2.72	14.24%
Analog Devices Inc	60.27	3.98	12.39	2.32%	$1.47	$1.94	25.91%
ARM Holdings PLC	142.13	15.88	26.79	3.3%	$0.22	$1.11	34.48%
Marvell Technology Inc	30.55	5.23	9.67	13.84%	$2.58	$1.07	36.83%
NXP Semiconductors NV	27.19	5.51	4.65	6.43%	$1.11	$1.79	-2.37%
Monolithic Power Systems Inc	23.70	12.41	16.72	5.12%	$0.21	$0.41	18.88%
ASE Technology Holding Co Ltd	32.48	3.46	1.76	3.56%	$32.4	$28.88	5.29%
First Solar Inc	20.28	3.15	5.63	5.19%	$0.61	$0.61	79.67%
Credo Technology Group Holding Ltd	124.93	20.35	34.77	7.99%	$0.09	$0.18	272.08%
STMicroelectronics NV	44.93	1.30	2.06	1.33%	$0.31	$1.06	-1.97%
ON Semiconductor Corp	74.30	2.76	3.66	3.22%	$0.44	$0.59	-11.98%
United Microelectronics Corp	14.79	1.74	2.62	4.29%	$30.07	$17.62	-2.25%
Tower Semiconductor Ltd	69.75	4.75	9.03	1.9%	$0.13	$0.09	6.79%
Lattice Semiconductor Corp	372.90	14.44	20.82	0.4%	$0.01	$0.09	4.92%
Rambus Inc	45.09	7.91	15.18	3.84%	$0.08	$0.14	22.68%
Average	96.91	9.39	12.29	5.41%	$39.29	$34.15	32.03%

Through a meticulous analysis of Micron Technology, we can observe the following trends:

• A Price to Earnings ratio of 27.82 significantly below the industry average by 0.29x suggests undervaluation. This can make the stock appealing for those seeking growth.

• The current Price to Book ratio of 5.6, which is 0.6x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

• With a relatively low Price to Sales ratio of 7.81, which is 0.64x the industry average, the stock might be considered undervalued based on sales performance.

• With a Return on Equity (ROE) of 9.28% that is 3.87% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

• Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $8.35 Billion, which is 0.21x below the industry average, potentially indicating lower profitability or financial challenges.

• Compared to its industry, the company has lower gross profit of $7.65 Billion, which indicates 0.22x below the industry average, potentially indicating lower revenue after accounting for production costs.

• The company is experiencing remarkable revenue growth, with a rate of 56.65%, outperforming the industry average of 32.03%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When assessing Micron Technology against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

• Micron Technology is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.21.

• This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

For Micron Technology in the Semiconductors & Semiconductor Equipment industry, the PE, PB, and PS ratios are low compared to peers, indicating potential undervaluation. On the other hand, the high ROE and revenue growth suggest strong performance relative to industry standards. However, the low EBITDA and gross profit levels may require further investigation to understand the company's operational efficiency and profitability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.