Short fundamental and technical analysis of a 'must have' stock
Quarterly report:
Very impressive in my opinion. It was beating analyst estimations both in terms of revenue and earnings as well as future guidance and outlook. Investors are happy and on pre-market the stock is gaining more than 8% at the time of writing.
Fundamental analysis:
1. Valuation:
I could say that historically $MU had better valuation than it currently has, however if compared to industry peers and the overall market the valuation seems OK to me... especially in current highly overvalued environment and FED hawkish tone.
2. Growth:
The company remains a growth story. Earnings are forecasted to grow roughly 20% per year in the near future. Revenue growth is estimated to be not so significant.
3. Profitability
Luckily the company is extremely profitable. It was reported that gross margin equals 46.4%, operating margin equals 34.2%, while net income margin is almost 30%.
4. Financial position:
Excellent. Cash rich, almost no debts and well covered.
5. ESG rating:
Low risk and good rating (17.7 at Sustainalytics)
6. Dividend $ Buyback:
0.49% the current div yield and TTM the company repurchased $1.3b of its common stock.
Technical analysis:
The company is gaining on pre-market and remains in the uptrend. Next psychological resistance is around 100. This is the price where I will slightly rebalance my position.
Thanks for reading,
Feel free to ask any questions or comment down below.
Very impressive in my opinion. It was beating analyst estimations both in terms of revenue and earnings as well as future guidance and outlook. Investors are happy and on pre-market the stock is gaining more than 8% at the time of writing.
Fundamental analysis:
1. Valuation:
I could say that historically $MU had better valuation than it currently has, however if compared to industry peers and the overall market the valuation seems OK to me... especially in current highly overvalued environment and FED hawkish tone.
2. Growth:
The company remains a growth story. Earnings are forecasted to grow roughly 20% per year in the near future. Revenue growth is estimated to be not so significant.
3. Profitability
Luckily the company is extremely profitable. It was reported that gross margin equals 46.4%, operating margin equals 34.2%, while net income margin is almost 30%.
4. Financial position:
Excellent. Cash rich, almost no debts and well covered.
5. ESG rating:
Low risk and good rating (17.7 at Sustainalytics)
6. Dividend $ Buyback:
0.49% the current div yield and TTM the company repurchased $1.3b of its common stock.
Technical analysis:
The company is gaining on pre-market and remains in the uptrend. Next psychological resistance is around 100. This is the price where I will slightly rebalance my position.
Thanks for reading,
Feel free to ask any questions or comment down below.