MU - Embedded Expectations Analysis - 2018 10 11
Micron Technology, Inc. (MU:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 4.0x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their ability to execute their strategies and improve manufacturing efficiency, and about capital expendituresSpecifically, management may be exaggerating the extent to which their markets are propelled by diversified, secular growth trends, and that they are executing well against the company's strategy. Additionally, they may lack confidence in the sustainability of growth trends in their Cloud segment, and in their ability to grow SSD share again in 2020 with a more robust product portfolio. Also, they may lack confidence in their ability to sustain revenue growth from their data center and graphics segments, and may be exaggerating their focus on weighting their capex towards equipment and technology transitions. Furthermore, they may lack confidence in their ability to improve the efficiency of their manufacturing group, and may be overstating the health of the market for DRAM
Micron Technology provides memory and storage solutions. The company's portfolio of memory and storage technologies include Dynamic Random Access Memory, Not And, 3D XPoint? memory, and Not Or. The company's segments are: Compute and Networking Business, which includes memory products sold into client, cloud server, enterprise, graphics, and networking markets; Mobile Business, which includes memory products sold into smartphone and other mobile-device markets; Storage Business, which includes Solid-State Drives and component-level solutions sold into enterprise and cloud, client, and consumer storage markets; and Embedded Business, which includes memory and storage products.
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