posted by mark
on Sun, 09/27/2020 - 10:50
Attached are charts of Micron's metrics from their 10K's and 10Q's. It is likely that a turning point will become clearer with their earnings announcement on 9/29.
While the P/E is higher than I would like, it is relatively low compared to its industry. MU is showing that it is worthy of a more in-depth look.
Here is a summary of what I see.
- Sales are showing sprouts of growth. They have held steady for a number of quarters and turned up last quarter.
- Return on sales is showing an inflection and moving up. It is likely from their historical pattern that the cycle is reversing.
- Long term debt has been reduced given the current environment. This is a smart move in a cyclical industry.
- Cash reserves are up to deal with a potential volatile economic environment.
- Investment in their business is growing significantly. This also occurred in 2015 and 2016 which lead to record profits.
MU is worth a closer look. The fundamentals are improving. The proof is in the pudding (10K's and 10Q's).
Be smart, be well-informed and be successful.
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