Micron has a little too much debt and no great assets

Accuracy score :
97%

Micron Technology Inc  MU

Summary (from latest annual report – 2015 and quarterly report 2016)

  • Total equity: 12.26 billion USD
  • Market Cap is 13 billion USD ( last price of the stock is 12.58 USD)
  • Micron Technology is an American multinational corporation based in Boise, Idaho which produces many forms of semiconductor devices, including dynamic random-access memory, flash memory, and solid-state drives. Its consumer products are marketed under the brands Crucial Technology and Lexar
  • Equity of total company increased from 10.77 billion USD in 2014 to 12.26 billion in 2016
  • Company has 3.07 billion USD in cash on account (from latest quarterly report2016 year)
  • Total equity – cash on account = 12.26 billion USD – 3.07 billion USD = 9.19 billion USD
  • Company has 1.02 billion USD treasury stock
  • In 2016 company has 6.49 billion USD long-term debt, short – term debt was 1.12 billion USD(In 2014 company had 1.63 billion USD short-term debt , long-term debt was 4.95 billion USD)
  • In latest quarterly report - total equity increased to 12.26 billion  USD from 10.77 billion USD in 2014, total debt was 7.61 billion USD in 2016)
  • Company's revenue decreased in 2015 to 16.19 billion USD from 16.35 billion in 2014
  • Net income in 2015 was 2.89 billion USD, Net income in 2014 was 3.04 billion USD

Micron Technology Inc  Subsidiaries MU

Micron Technology, Inc. is an American multinational corporation based in Boise, Idaho which produces many forms of semiconductor devices, including dynamic random-access memory, flash memory, and solid-state drives. Its consumer products are marketed under the brands Crucial Technology and Lexar. Micron and Intel together created IM Flash Technologies, which produces NAND flash memory (In April 2011, Micron and Intel opened a second joint-venture NAND Flash plant, IM Flash Singapore, in Singapore). Micron was named one of Thomson Reuters top 100 global innovators in 2012 and 2013. Micron Technology is also ranked among the Top 5 Semiconductor producing companies in the world.

 

Products

Micron makes DRAM Memory components and modules, including SDRAM, DDR SDRAM, DDR2 SDRAM, DDR3 SDRAM, DDR4 SDRAM, LPDRAM, RLDRAM, PSRAM, and multi-chip packages. It also makes NAND, Managed NAND and NOR flash memory, and SSDs. Lexar and Crucial are some of the most popular brands the company uses to distribute its products.

 

 

MU standalone subsidiaries and acquisitions :

  • In 1998 Micron becomes one of the largest memory producers in the world with the purchase of Texas Instruments' worldwide memory operations for 800 million USD, year before Micron acquired NetFrame Systems Incorporated for undisclosed amount
  • In 2001 KMT Semiconductor, Ltd., in Nishiwaki City, Japan, becomes a wholly-owned subsidiary with Micron’s purchase of Kobe Steel, Ltd.’s, interest in the joint-venture operation, worth 120 million USD
  • In 2002 Micron acquires Toshiba's commodity DRAM operations at Dominion Semiconductor, LLC, a subsidiary of Toshiba Corporation of Japan, located in Manassas, Virginia - worth 350 million USD
  • In 2006 Micron acquires Lexar Media for 790 million USD to expand NAND Flash memory portfolio
  • In 2009 Micron acquires Displaytech, Inc., and introduces a new single-chip microdisplay panel, worth below 50 million USD
  • On February 10, 2010, Micron agreed to buy flash-chip maker Numonyx for about 1.27 billion USD
  • On July 2, 2012, Micron announced they would buy, for 2.5 billion USD, the bankrupt Elpida Memory, as well as an additional 24% share (in addition to the 65% acquired through Elpida) in Rexchip Electronics from Powerchip. The move is reported to double Micron's share of the memory market to 24%. Kipp Bedard of Micron has said that this move leaves only his company and two South Korean firms as serious DRAM producers and with no additional supply coming into the market there would be no more oversupply, while growth in mobile, networking and servers would drive the market in the future
  • On October 12, the company announced the purchase of Qimonda's stake inInotera technologies for 400 million USD
  • On February 23, 2012, Micron Technology will become the largest shareholder of Inotera Memories, a major DRAM (dynamic random access memory) maker in Taiwan, after fully subscribing 763 million shares issued by Inotera for a capital increment of 150 million USD via private placement
  • Micron had several smaller acquisitions : Virtensys, Pico Computing, Convey Computer, Tidal Systems worth 150 millon USD

 

Total = 6.58 billion usd

Opinion about the company

Fundamentally it is a very good company and in the future we can expect its growth (Total debt is 7.61 billion usd, company has 3.07 billion USD in cash on account, ROE is around 8 %).

 

 

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