Looking for growth without the hefty price tag? Consider NASDAQ:SMCI.

Uncover the potential of SUPER MICRO COMPUTER INC (NASDAQ:SMCI), a growth stock that our stock screener found to be reasonably priced. NASDAQ:SMCI is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Evaluating Growth: NASDAQ:SMCI

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:SMCI boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 109.95% over the past year.
• The Earnings Per Share has been growing by 67.00% on average over the past years. This is a very strong growth
• SMCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.09%.
• Measured over the past years, SMCI shows a quite strong growth in Revenue. The Revenue has been growing by 16.21% on average per year.
• Based on estimates for the next years, SMCI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.79% on average per year.
• Based on estimates for the next years, SMCI will show a very strong growth in Revenue. The Revenue will grow by 29.12% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NASDAQ:SMCI's Valuation Score

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:SMCI scores a 5 out of 10:

• Based on the Price/Earnings ratio, SMCI is valued a bit cheaper than 64.71% of the companies in the same industry.
• 61.76% of the companies in the same industry are more expensive than SMCI, based on the Price/Forward Earnings ratio.
• SMCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of SMCI may justify a higher PE ratio.
• SMCI's earnings are expected to grow with 28.79% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:SMCI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:SMCI, the assigned 8 reflects its health status:

• SMCI has an Altman-Z score of 9.32. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
• SMCI has a Altman-Z score of 9.32. This is amongst the best in the industry. SMCI outperforms 97.06% of its industry peers.
• The Debt to FCF ratio of SMCI is 0.46, which is an excellent value as it means it would take SMCI, only 0.46 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.46, SMCI belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
• A Debt/Equity ratio of 0.06 indicates that SMCI is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.06, SMCI is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
• SMCI has a Current Ratio of 2.31. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 2.31, SMCI is doing good in the industry, outperforming 61.76% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SMCI, the assigned 8 is noteworthy for profitability:

• With an excellent Return On Assets value of 17.42%, SMCI belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
• SMCI has a Return On Equity of 32.45%. This is amongst the best in the industry. SMCI outperforms 94.12% of its industry peers.
• With an excellent Return On Invested Capital value of 28.07%, SMCI belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
• The 3 year average ROIC (17.60%) for SMCI is below the current ROIC(28.07%), indicating increased profibility in the last year.
• SMCI's Profit Margin of 8.98% is amongst the best of the industry. SMCI outperforms 91.18% of its industry peers.
• SMCI's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 10.69%, SMCI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
• In the last couple of years the Operating Margin of SMCI has grown nicely.
• In the last couple of years the Gross Margin of SMCI has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of SMCI

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.