Micron Stock Analysis: Buy or Sell After Earnings Results? | MU Stock Analysis

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마이크론 FY25 4분기 매출 113억달러(전년 대비 상승), 매출총이익률 44.7%, 영업이익 36억달러로 호실적. 다음 분기 매출 125억달러·매출총이익률 50% 이상 전망. 자본지출 158억달러를 영업현금흐름(175억달러)으로 감당. 내재가치 131달러 대비 현 주가 166달러로 적정~소폭 고평가. 사업 자체는 여전히 좋다고 평가하며 매수 등급 유지.

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01. Micron reported d on Tuesday, September 23rd, and the phenomenal performance continues for Micron Technology. In this video, I'll review its latest results and update my buy, hold, or sell rating on Micron Technology. Let's jump right into it after a brief messagool.com/parkev for the 10 best stocks to buy now.

02. So, Micron's revenues increased to 11.3 billion in the fiscal fourth quarter for the company. That's up from 7.7 billion in the same quarter last year. But not only is revenue increasing, but margins are improving as well as its gross profit margin jumped to 44.7% up from 35% in the same quarter last year.

03. That allowed its operating income to more than double to 3.6 billion, up from 1.5 billion in the same quarter last year. That's good for an operating profit margin of 32.3%. The management team said that in fiscal 2025 they achieved all-time highs across their data center business and are entering fiscal 2026 with strong momentum.

04. As the only US-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead. being a US-based manufacturer is taking more importance of late as the current administration is picking on companies that are not manufacturing in the United States. So that gives Micron an advantage in the near term and in the longer term as the company received billions of dollars from the US government to help expand its manufacturing and this year alone the company spent over $10 billion on expending on capital expenditures that will deliver long lasting manufacturing capabilities.

05. The management team expects the good times to continue forecasting revenue of 12.5 billion in the upcoming quarter with gross profit margins climbing above 50%. Those would be sequential improvements meaningfully from the previous quarter as the company's improvements continue. Recall in the most recently completed quarter they generated 11.3 billion in revenue.

06. Now management expects 12.5 billion. in the upcoming quarter. They generated 44.7% in gross profit margin. Now the management expects over 50% gross profit margin in the upcoming quarter. I mentioned that Micron is investing aggressively in its growth and expanding and improving its manufacturing capabilities in the previously completed year which ended August 28, 2025 for Micron.

07. The company spent $15.8 8 billion on property, plant, and equipment, which for Micron is primarily its manufacturing facilities. That's almost double the $ 8.4 billion they spent last year. Remember, this huge increase in capital expenditures is the reason why investors soured on Intel stock. But the big difference between Micron and Intel, the US-based manufacturers, is Micron is not spending more than the cash flow it's generating.

08. In fact, in the previously completed fiscal year, the company generated 17.5 billion in cash flow from operations. It then spent 8 15.8 billion. So, it still had $1.7 billion left over even after spending 15.8 billion on capital expenditures. That's the big difference between Micron and Intel. Intel was spending way more than the cash flow was bringing in and it significantly hurt its balance sheet and led to the company having to pause its dividend and really disappoint investors.

09. Micron is not doing that. Micron's business also is generating very strong cash flow from operations as it's already benefiting from the AI boom as you notice the huge increases in revenue, increases in margins. So, the company's performance remains excellent, and you can understand why the stock price is up by as much as it's up this year.

10. And of course, I'm had it rated as a buy starting in January, January 1st, and I informed investors that I really like the risk versus reward for Micron stock coming into 2025. Now, the company's valuation is getting rich. It's no longer a extremely attractive bargain like it was to begin 2025. The market price now before the aftermarket hours action was $166 per share and my intrinsic value calculation had the business worth $131.

11. So applying a margin of safety, the Micron stock looks fairly valued or slightly overvalued at current market prices. Of course, following these earnings results, I will update this discounted cash flow model with the new and improved figures, and that should have a slight positive impact on the company's cash flow expectations and the company's business model going forward as the revenue continues to increase.

12. So, what do I think about the company now? Do I still think it's a buy following these earnings results, or do I think it's a good time for investors take profits? Well, I still like the business. Of course, not as much as I liked it on January 1st when it was trading at such a cheap valuation, but I still like the business.

13. You're getting an absolutely thriving company right now that's also invested significantly in the development of future technology that you're going to benefit from in future years. So, not only are the current results excellent, but it's investing. It's not it's not conserving. It's not trying to be cheap with future investment.

14. It's spending the amount it feels is necessary to capitalize on this booming AI opportunity. So, all of that looks good. Of course, I would love for this stock to be cheaper, but all things being equal, this stock I still have it rated as a buy. .