SUPER MICRO COMPUTER INC (1SMCI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SMCI - US86800U3023 - Common Stock
25.97 EUR
-0.33 (-1.25%)
1SMCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. 1SMCI has an average financial health and profitability rating. 1SMCI is not priced too expensively while it is growing strongly. 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.
- In the past year 1SMCI had a positive cash flow from operations.
- Each year in the past 5 years 1SMCI has been profitable.
- The reported operating cash flow has been mixed in the past 5 years: 1SMCI reported negative operating cash flow in multiple years.
1.2 Ratios
- The Return On Assets of 1SMCI (5.51%) is better than 61.29% of its industry peers.
- With a decent Return On Equity value of 12.15%, 1SMCI is doing good in the industry, outperforming 74.19% of the companies in the same industry.
- 1SMCI has a Return On Invested Capital of 5.77%. This is comparable to the rest of the industry: 1SMCI outperforms 58.06% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1SMCI is in line with the industry average of 16.24%.
- The 3 year average ROIC (15.00%) for 1SMCI is well above the current ROIC(5.77%). The reason for the recent decline needs to be investigated.
| 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.
- In the last couple of years the Profit Margin of 1SMCI has grown nicely.
- 1SMCI has a Operating Margin (4.40%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1SMCI has grown nicely.
- With a Gross Margin value of 10.08%, 1SMCI is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 1SMCI has declined.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1SMCI is creating value.
- Compared to 1 year ago, 1SMCI has more shares outstanding
- The number of shares outstanding for 1SMCI has been increased compared to 5 years ago.
- Compared to 1 year ago, 1SMCI has a worse debt to assets ratio.
2.2 Solvency
- 1SMCI has an Altman-Z score of 4.30. This indicates that 1SMCI is financially healthy and has little risk of bankruptcy at the moment.
- 1SMCI's Altman-Z score of 4.30 is amongst the best of the industry. 1SMCI outperforms 80.65% of its industry peers.
- 1SMCI has a debt to FCF ratio of 21.92. This is a negative value and a sign of low solvency as 1SMCI would need 21.92 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 21.92, 1SMCI is in line with its industry, outperforming 45.16% of the companies in the same industry.
- 1SMCI has a Debt/Equity ratio of 0.72. This is a neutral value indicating 1SMCI is somewhat dependend on debt financing.
- 1SMCI has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 4.3 |
ROIC/WACC0.78
WACC7.36%
2.3 Liquidity
- A Current Ratio of 5.39 indicates that 1SMCI has no problem at all paying its short term obligations.
- 1SMCI has a better Current ratio (5.39) than 96.77% of its industry peers.
- 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.
- 1SMCI has a Quick ratio of 2.95. This is amongst the best in the industry. 1SMCI outperforms 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.39 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
- The earnings per share for 1SMCI have decreased strongly by -35.38% in the last year.
- The Earnings Per Share has been growing by 50.41% on average over the past years. This is a very strong growth
- Looking at the last year, 1SMCI shows a quite strong growth in Revenue. The Revenue has grown by 11.94% in the last year.
- 1SMCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.76% yearly.
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.
- 1SMCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.77% yearly.
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
- Based on the Price/Earnings ratio of 18.55, the valuation of 1SMCI can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1SMCI.
- 1SMCI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.78 indicates a reasonable valuation of 1SMCI.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 1SMCI is valued rather cheaply when compared to this.
| 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.
- Based on the Price/Free Cash Flow ratio, 1SMCI is valued a bit more expensive than the industry average as 61.29% of the companies are valued more cheaply.
| 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 an expensive valuation of the company.
- 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.