Price to FCFE (P/FCFE)
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Micron Technology Inc. pages available for free this week:
- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Micron Technology Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited fluctuating trends over the observed periods. Initially, there was a significant decrease from 13,189 million USD in 2019 to 8,306 million USD in 2020. This was followed by a recovery to 12,468 million USD in 2021 and a further increase to a peak of 15,181 million USD in 2022. However, the subsequent years showed a sharp decline, plummeting to 1,559 million USD in 2023 before recovering somewhat to 8,507 million USD in 2024. Despite the recovery in 2024, the level remains substantially below the peak values seen in 2021 and 2022.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity demonstrated a less consistent pattern with more pronounced volatility. Starting at 3,619 million USD in 2019, the FCFE declined significantly to 717 million USD in 2020, followed by a partial recovery to 2,106 million USD in 2021 and a further rise to 3,082 million USD in 2022. Thereafter, the FCFE turned negative, registering a deficit of 162 million USD in 2023 and worsening to negative 777 million USD in 2024. This downward turn into negative territory suggests potential pressures on the company’s capacity to generate residual cash flow available to equity holders after investments and operational expenses.
- Overall Financial Cash Flow Trends
- Examining both cash flow metrics together unveils a divergence in recent years. While net cash provided by operating activities remained positive despite volatility, the free cash flow to equity declined sharply after 2022 and became negative in the last two reported years. This indicates increasing capital expenditures, debt repayments, or other cash outflows reducing cash available to shareholders. The stark drop in operating cash in 2023 aligns with the negative free cash flow, suggesting operational challenges. Although operating cash showed some recovery in 2024, the free cash flow to equity continued to deteriorate, emphasizing ongoing financial strain in distributing cash to equity holders.
Price to FCFE Ratio, Current
Micron Technology Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Monolithic Power Systems Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-08-29).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Micron Technology Inc., historical P/FCFE calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Monolithic Power Systems Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| P/FCFE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| P/FCFE, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Micron Technology Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price showed a general upward trajectory over the six-year period. Starting at $45.50 in August 2019, it increased steadily, peaking at $70.12 in September 2021 before experiencing a decline to $52.91 in September 2022. Following this dip, the share price rose again significantly, reaching $69.96 in August 2023 and further escalating to $102.25 in August 2024. This indicates an overall strong recovery and growth in market valuation by the end of the period.
- Free Cash Flow to Equity (FCFE) per Share Trend
- FCFE per share exhibited considerable volatility throughout the period. Beginning at $3.27 in August 2019, there was a substantial drop to $0.64 in September 2020. It subsequently recovered to $1.88 and $2.83 in the following two years, indicating moderate improvement in cash flow generation available to equity holders. However, in the last two recorded periods, FCFE per share turned negative, recording -$0.15 in August 2023 and worsening to -$0.70 in August 2024. This suggests challenges in free cash flow generation in the most recent years.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio demonstrated a declining trend from an extremely high valuation in 2020 to more moderate levels by 2022. Starting at 13.92 in 2019, it spiked dramatically to 81.71 in 2020, reflecting a significant premium placed on the equity despite low FCFE per share. The ratio then decreased to 37.24 in 2021 and further dropped to 18.66 in 2022, signaling a normalization in valuation relative to the company's free cash flow. The ratio is not available for the final two years, possibly due to negative FCFE values, which typically render this metric non-applicable or not meaningful.
- Overall Analysis
- The data reflects a fluctuating financial performance with a strong market appreciation in share price despite weakening free cash flow in the later years. The divergence between the rising share price and declining FCFE per share in the recent period could suggest market optimism driven by factors other than immediate cash flow performance, such as anticipated future growth or strategic developments. The disappearance of P/FCFE ratio in the final years aligns with negative free cash flow, signaling potential financial stress or investment in growth that has not yet translated into positive cash returns.