$MU pitch:
– Manufacturer of digital memory and storage solutions at 7.5x PE.
– Expected to continue transitioning from the lower margin, “commodity” memory and storage chips into the “complex,” high-end, higher-margin chips used in Data Centers, Automotive, and Industrial markets.
– The target market is expected to double in size by the end of the decade.
– Recent technological strides were masked by industrywide headwinds.
– Mid to high teens ROIC.
– The robust balance sheet recently shifted from net debt to material net cash.
Valuation:
– Trades around 7.5x FY’22 EPS.
– Expected to generate $10 EPS in the near term – i.e. sits at 6x fwd PE.
Exp. gain: Not specified.
Full $MU write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/MICRON_TECHNOLOGY_INC/6112738141