SUPER MICRO COMPUTER INC (1SMCI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SMCI - US86800U3023 - Common Stock
25.97 EUR
-0.33 (-1.25%)
Overall 1SMCI gets a fundamental rating of 5 out of 10. We evaluated 1SMCI against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. 1SMCI has only an average score on both its financial health and profitability. 1SMCI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 1SMCI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- 1SMCI had positive earnings in the past year.
- 1SMCI had a positive operating cash flow in the past year.
- 1SMCI had positive earnings in each of the past 5 years.
- In multiple years 1SMCI reported negative operating cash flow during the last 5 years.
1.2 Ratios
- 1SMCI's Return On Assets of 5.51% is fine compared to the rest of the industry. 1SMCI outperforms 61.29% of its industry peers.
- 1SMCI has a Return On Equity of 12.15%. This is in the better half of the industry: 1SMCI outperforms 74.19% of its industry peers.
- The Return On Invested Capital of 1SMCI (5.77%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for 1SMCI is in line with the industry average of 16.24%.
- The last Return On Invested Capital (5.77%) for 1SMCI is well below the 3 year average (15.00%), which needs to be investigated, but indicates that 1SMCI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 12.15% | ||
| ROIC | 5.77% |
ROA(3y)12.21%
ROA(5y)10.1%
ROE(3y)23.46%
ROE(5y)20.12%
ROIC(3y)15%
ROIC(5y)13.38%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.77%, 1SMCI is in line with its industry, outperforming 51.61% of the companies in the same industry.
- 1SMCI's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 4.40%, 1SMCI perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1SMCI has grown nicely.
- 1SMCI has a Gross Margin of 10.08%. This is amonst the worse of the industry: 1SMCI underperforms 87.10% of its industry peers.
- 1SMCI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.4% | ||
| PM (TTM) | 3.77% | ||
| GM | 10.08% |
OM growth 3Y-4.21%
OM growth 5Y17.33%
PM growth 3Y-4.54%
PM growth 5Y13.59%
GM growth 3Y-10.44%
GM growth 5Y-6.84%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SMCI is creating value.
- The number of shares outstanding for 1SMCI has been increased compared to 1 year ago.
- The number of shares outstanding for 1SMCI has been increased compared to 5 years ago.
- 1SMCI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.30 indicates that 1SMCI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.30, 1SMCI belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- The Debt to FCF ratio of 1SMCI is 21.92, which is on the high side as it means it would take 1SMCI, 21.92 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 21.92, 1SMCI perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that 1SMCI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, 1SMCI perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 4.3 |
ROIC/WACC0.79
WACC7.34%
2.3 Liquidity
- 1SMCI has a Current Ratio of 5.39. This indicates that 1SMCI is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 5.39, 1SMCI belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- 1SMCI has a Quick Ratio of 2.95. This indicates that 1SMCI is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.95, 1SMCI belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.39 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
- 1SMCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.38%.
- The Earnings Per Share has been growing by 50.41% on average over the past years. This is a very strong growth
- The Revenue has grown by 11.94% in the past year. This is quite good.
- The Revenue has been growing by 45.76% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-35.38%
EPS 3Y54.17%
EPS 5Y50.41%
EPS Q2Q%-52.7%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y61.71%
Revenue growth 5Y45.76%
Sales Q2Q%-15.49%
3.2 Future
- 1SMCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.24% yearly.
- The Revenue is expected to grow by 21.77% on average over the next years. This is a very strong growth
EPS Next Y1.87%
EPS Next 2Y23.93%
EPS Next 3Y22.79%
EPS Next 5Y12.24%
Revenue Next Year62.58%
Revenue Next 2Y40.71%
Revenue Next 3Y32.54%
Revenue Next 5Y21.77%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.55, which indicates a rather expensive current valuation of 1SMCI.
- 1SMCI's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of 1SMCI to the average of the S&P500 Index (28.82), we can say 1SMCI is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 9.78, the valuation of 1SMCI can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SMCI indicates a somewhat cheap valuation: 1SMCI is cheaper than 70.97% of the companies listed in the same industry.
- 1SMCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SMCI is on the same level as its industry peers.
- 1SMCI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1SMCI is more expensive than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.87 | ||
| EV/EBITDA | 19.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SMCI does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as 1SMCI's earnings are expected to grow with 22.79% in the coming years.
PEG (NY)9.91
PEG (5Y)0.37
EPS Next 2Y23.93%
EPS Next 3Y22.79%
5. Dividend
5.1 Amount
- 1SMCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SUPER MICRO COMPUTER INC / 1SMCI.MI FAQ
Can you provide the ChartMill fundamental rating for SUPER MICRO COMPUTER INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1SMCI.MI.
What is the valuation status for 1SMCI stock?
ChartMill assigns a valuation rating of 4 / 10 to SUPER MICRO COMPUTER INC (1SMCI.MI). This can be considered as Fairly Valued.
What is the profitability of 1SMCI stock?
SUPER MICRO COMPUTER INC (1SMCI.MI) has a profitability rating of 5 / 10.
What is the valuation of SUPER MICRO COMPUTER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SUPER MICRO COMPUTER INC (1SMCI.MI) is 18.55 and the Price/Book (PB) ratio is 2.84.
Can you provide the expected EPS growth for 1SMCI stock?
The Earnings per Share (EPS) of SUPER MICRO COMPUTER INC (1SMCI.MI) is expected to grow by 1.87% in the next year.