Aureus
FRed Flag

Micron Technology, Inc.(MU)

F

Financial data as of Aug 31, 2025Improving · Technology

FCF Margin1.9%Free Cash Flow / Revenue
Cash Conversion205.2%Operating CF / Net Income
Free Cash Flow$1.7B
Revenue$37.4B
Net Cash-$5.6BNet debt position
Debt / FCF22.0xElevated debt burden
Current Ratio2.52Adequate short-term liquidity
YoY FCF Growth+100.0%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (22.0x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.17)
→
+0.5Strong revenue growth (196.3% YoY) offsets compressed FCF margin
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (205%)
  • Strong liquidity (current ratio: 2.52)
  • Strong YoY FCF growth (+100.0%)
  • Strong revenue growth (196.3% YoY)

Concerns

  • Low FCF margin (1.9%)
  • Heavy debt position ($5.6B net debt, 22.0x FCF)
  • High debt-to-FCF ratio (22.0x)
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF
Heavy CapEx — Operating cash flow is strong (47% margin) but most is reinvestedSBC-adjusted FCF used — $1.0B stock-based compensation (58% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.9%
Net Margin22.8%
Operating CF Margin46.9%
CapEx Ratio42.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.6BNet debt position
Debt / FCF22.0xElevated debt burden
Current Ratio2.52Strong liquidity
Debt / Equity0.28Low leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameMicron Technology, Inc.
SectorTechnology
Free Cash Flow$1.7B
Revenue$37.4B
Net Income$8.5B
Operating Cash Flow$17.5B
Capital Expenditure$15.9B
FCF Margin1.9%
Cash Conversion Rate205.2%
Net Margin22.8%
Total Debt$15.3B
Total Cash$9.6B
Net Cash-$5.6B
Current Ratio2.52
Debt / Equity0.28
Debt / FCF22.0x
YoY FCF Growth+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateAug 31, 2025
GradeF
Data SourceYahoo Finance

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