SUPER MICRO COMPUTER INC (NASDAQ:SMCI) - A Strong Growth Stock With Reasonable Valuation
By Mill Chart
Last update: May 13, 2025
SUPER MICRO COMPUTER INC (NASDAQ:SMCI) was identified as an affordable growth stock by our screening process. The company combines strong growth metrics with reasonable valuation, solid profitability, and acceptable financial health.
Growth Prospects
- Revenue Growth: SMCI reported an 82.5% year-over-year revenue increase, significantly outpacing many peers in the Technology Hardware, Storage & Peripherals industry.
- Earnings Expansion: Earnings per share (EPS) grew by 18.8% over the past year, with a five-year average annual growth rate of 66.6%.
- Future Expectations: Analysts project continued EPS growth of 27.6% annually, supported by an expected 9.6% yearly revenue increase.
Valuation
- P/E Ratio: At 14.7, SMCI’s P/E ratio is below the S&P 500 average of 24.8 and cheaper than 65.6% of its industry peers.
- Forward P/E: The forward P/E of 9.3 suggests further upside potential, trading at a discount compared to the broader market.
- PEG Ratio: A low PEG ratio indicates the stock is reasonably priced relative to its expected earnings growth.
Profitability & Financial Health
- Strong Margins: SMCI’s profit margin of 5.3% outperforms 75% of industry competitors, with improving operating margins.
- ROIC & ROE: The company generates a 12.7% return on invested capital and an 18% return on equity, ranking well within its sector.
- Liquidity: A current ratio of 6.7 and quick ratio of 4.0 demonstrate strong short-term financial stability.
- Debt Concerns: While solvency metrics are solid, the high debt-to-free-cash-flow ratio (70.1) warrants monitoring.
For a deeper look, review the full fundamental analysis report for SMCI.
Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
Disclaimer
This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.
41.55
+0.78 (+1.91%)
Find more stocks in the Stock Screener
SMCI Latest News and Analysis
2 days ago - ChartmillThursday's session: top gainers and losers in the S&P500 indexUncover the latest developments among S&P500 stocks in today's session. Stay tuned to the S&P500 index's top gainers and losers on Thursday.
2 days ago - ChartmillThese S&P500 stocks are the most active in today's sessionExplore the S&P500 index on Thursday and find out which stocks are the most active in today's session. Stay updated with the stocks that are capturing market interest.
2 days ago - ChartmillExploring the top movers within the S&P500 index during today's session.Let's have a look at what is happening on the US markets in the middle of the day on Thursday. Below you can find the top S&P500 gainers and losers in today's session.
2 days ago - ChartmillGapping S&P500 stocks in Thursday's sessionThursday's session is showcasing interesting market movements in the S&P500 index, with notable gap up and gap down stocks. Stay updated with the gapping S&P500 stocks in today's session.
3 days ago - ChartmillWhat's going on in today's session: S&P500 most active stocksExplore the S&P500 index on Wednesday and find out which stocks are the most active in today's session. Stay updated with the stocks that are capturing market interest.
4 days ago - ChartmillLooking for the most active stocks in the S&P500 index on Tuesday?Let's have a look at what is happening on the US markets on Tuesday. Below you can find the most active S&P500 stocks in today's session.
4 days ago - ChartmillThese S&P500 stocks are moving in today's sessionStay informed about the performance of the S&P500 index in the middle of the day on Tuesday. Uncover the top gainers and losers in today's session for valuable insights.
8 days ago - ChartmillWhich S&P500 stocks are the most active on Friday?Curious about the most active S&P500 stocks in today's session? Get insights into the stocks that are leading the way in terms of trading volume and market attention.
8 days ago - ChartmillDiscover which S&P500 stocks are making waves on Friday.Wondering what's happening in today's session for the S&P500 index? Stay informed with the top movers within the S&P500 index on Friday.
8 days ago - ChartmillFriday's session: gap up and gap down stock in the S&P500 indexWondering what's happening in today's session regarding gap up and gap down stocks? Explore the S&P500 index on Friday to uncover the stocks that are gapping in the S&P500 index.
9 days ago - ChartmillThursday's session: most active stock in the S&P500 indexLooking for the most active S&P500 stocks in today's session? Join us as we dive into the US markets on Thursday and discover the stocks that are dominating the trading activity and setting the pace for the market.
9 days ago - ChartmillWondering what's happening in today's S&P500 pre-market session?The US market is yet to commence its session on Thursday, but let's get a preview of the pre-market session and explore the top S&P500 gainers and losers driving the early market movements.
