Ratio Analysis
As of today, April 3, 2015, Micron has a P/E ratio of 8.66. Over the past 13 years, the highest P/E ratio of Micron was 115.75 and the lowest was 3.54. The overall median is 17.92. MU’s P/E ratio is ranked higher than 97% of the 1178 companies within the Global Semiconductor Memory Industry. This shows a positive sign of growth and that MU is outperforming other companies. The return on assets is 17.82% (as of Nov. 2014), while the minimum is -17.31% and the max was 18.39%. MU is also ranked higher than 97% of its competitors in the industry. Return on equity as of November 2014 is 35.74%. Over the past 13 years, the highest ROE was 30.58% and the lowest was -33.82%. MU is ranked higher than 98% of the 1107 companies in the …show more content…
Micron had their prices cut by Nomura because of weak DRAM demand. The memory stocks haven’t been in high demand since December, but Micron is the worst performer. They are down 24% as of this year. Micron’s research firm believes that the second half of this year, they will recover fast due to the high demand of smartphones. The four companies that I will be comparing with Micron are Samsung Electronics Co., LTD., SK Hynix Inc., Rambus, and SemiLEDs. Out of these five companies, Micron has a market value of thirty billion dollars and Rambus has a value of only one billion. When it comes to the P/E ratio, Rambus has a 59.7 while Micron has a ration of 8.6. In this case, Rambus has a higher ratio than Micron. This can either be beneficial for the company or it could be negative, but when compared with other values incorporated with the ratio, Rambus is actually very negative due to the high ratio while Micron has positive ratio. When comparing the five companies, Micron looks to be the better company of them all. Global economy is still recovering, but is said that the semiconductor market is expected to grow while the global economy is in recovery mode. Micron has numerous sales occurring in different countries. As of the fiscal year of 2014, china has the greatest percentage in total revenues with a percentage of 41.05%. The second best percentage is within the United States with a percentage of 15.59%. Other companies that are currently within the revenue circle are Taiwan, Malaysia, Europe, Asia Pacific, and a small portion of other. China has increased their revenue by 77.5% since the fiscal year of 2013. In the same year, the US increased their revenue by 68.7%. Micron is able to supply their semiconductors to other countries to obtain revenue. When the global economy starts recovering faster, the revenue may increase, benefiting
As of today, April 3, 2015, Micron has a P/E ratio of 8.66. Over the past 13 years, the highest P/E ratio of Micron was 115.75 and the lowest was 3.54. The overall median is 17.92. MU’s P/E ratio is ranked higher than 97% of the 1178 companies within the Global Semiconductor Memory Industry. This shows a positive sign of growth and that MU is outperforming other companies. The return on assets is 17.82% (as of Nov. 2014), while the minimum is -17.31% and the max was 18.39%. MU is also ranked higher than 97% of its competitors in the industry. Return on equity as of November 2014 is 35.74%. Over the past 13 years, the highest ROE was 30.58% and the lowest was -33.82%. MU is ranked higher than 98% of the 1107 companies in the …show more content…
Micron had their prices cut by Nomura because of weak DRAM demand. The memory stocks haven’t been in high demand since December, but Micron is the worst performer. They are down 24% as of this year. Micron’s research firm believes that the second half of this year, they will recover fast due to the high demand of smartphones. The four companies that I will be comparing with Micron are Samsung Electronics Co., LTD., SK Hynix Inc., Rambus, and SemiLEDs. Out of these five companies, Micron has a market value of thirty billion dollars and Rambus has a value of only one billion. When it comes to the P/E ratio, Rambus has a 59.7 while Micron has a ration of 8.6. In this case, Rambus has a higher ratio than Micron. This can either be beneficial for the company or it could be negative, but when compared with other values incorporated with the ratio, Rambus is actually very negative due to the high ratio while Micron has positive ratio. When comparing the five companies, Micron looks to be the better company of them all. Global economy is still recovering, but is said that the semiconductor market is expected to grow while the global economy is in recovery mode. Micron has numerous sales occurring in different countries. As of the fiscal year of 2014, china has the greatest percentage in total revenues with a percentage of 41.05%. The second best percentage is within the United States with a percentage of 15.59%. Other companies that are currently within the revenue circle are Taiwan, Malaysia, Europe, Asia Pacific, and a small portion of other. China has increased their revenue by 77.5% since the fiscal year of 2013. In the same year, the US increased their revenue by 68.7%. Micron is able to supply their semiconductors to other countries to obtain revenue. When the global economy starts recovering faster, the revenue may increase, benefiting