SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
NASDAQ:SMCI - Nasdaq - US86800U3023 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SMCI. SMCI was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI has an excellent profitability rating, but there are some minor concerns on its financial health. SMCI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make SMCI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SMCI was profitable.
In the past year SMCI had a positive cash flow from operations.
SMCI had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SMCI reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.72%, SMCI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of SMCI (18.04%) is better than 87.50% of its industry peers.
With a decent Return On Invested Capital value of 12.70%, SMCI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
SMCI had an Average Return On Invested Capital over the past 3 years of 20.63%. This is above the industry average of 16.42%.
The 3 year average ROIC (20.63%) for SMCI is well above the current ROIC(12.70%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.72% | ||
| ROE | 18.04% | ||
| ROIC | 12.7% |
ROA(3y)12.68%
ROA(5y)9.49%
ROE(3y)24.58%
ROE(5y)18.37%
ROIC(3y)20.63%
ROIC(5y)15.4%
1.3 Margins
SMCI has a Profit Margin of 5.34%. This is amongst the best in the industry. SMCI outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of SMCI has grown nicely.
SMCI has a Operating Margin (6.09%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SMCI has grown nicely.
SMCI has a Gross Margin of 11.27%. This is amonst the worse of the industry: SMCI underperforms 84.38% of its industry peers.
SMCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 5.34% | ||
| GM | 11.27% |
OM growth 3Y32.35%
OM growth 5Y23.8%
PM growth 3Y34.73%
PM growth 5Y30.21%
GM growth 3Y-2.91%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SMCI is creating value.
SMCI has more shares outstanding than it did 1 year ago.
SMCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SMCI has a worse debt to assets ratio.
2.2 Solvency
SMCI has an Altman-Z score of 7.29. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
SMCI's Altman-Z score of 7.29 is amongst the best of the industry. SMCI outperforms 90.63% of its industry peers.
The Debt to FCF ratio of SMCI is 70.05, which is on the high side as it means it would take SMCI, 70.05 years of fcf income to pay off all of its debts.
SMCI has a Debt to FCF ratio (70.05) which is in line with its industry peers.
A Debt/Equity ratio of 0.38 indicates that SMCI is not too dependend on debt financing.
The Debt to Equity ratio of SMCI (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 70.05 | ||
| Altman-Z | 7.29 |
ROIC/WACC1.45
WACC8.76%
2.3 Liquidity
A Current Ratio of 6.66 indicates that SMCI has no problem at all paying its short term obligations.
SMCI has a Current ratio of 6.66. This is amongst the best in the industry. SMCI outperforms 93.75% of its industry peers.
SMCI has a Quick Ratio of 3.95. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
SMCI's Quick ratio of 3.95 is amongst the best of the industry. SMCI outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.66 | ||
| Quick Ratio | 3.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.77% over the past year.
SMCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.56% yearly.
The Revenue has grown by 82.49% in the past year. This is a very strong growth!
The Revenue has been growing by 33.76% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.77%
EPS 3Y106.48%
EPS 5Y66.56%
EPS Q2Q%-53.38%
Revenue 1Y (TTM)82.49%
Revenue growth 3Y61.52%
Revenue growth 5Y33.76%
Sales Q2Q%19.48%
3.2 Future
The Earnings Per Share is expected to grow by 25.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, SMCI will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
EPS Next Y2.74%
EPS Next 2Y20.67%
EPS Next 3Y25.38%
EPS Next 5YN/A
Revenue Next Year48.3%
Revenue Next 2Y41.6%
Revenue Next 3Y36.28%
Revenue Next 5Y9.6%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.95 indicates a rather expensive valuation of SMCI.
62.50% of the companies in the same industry are more expensive than SMCI, based on the Price/Earnings ratio.
SMCI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.54, the valuation of SMCI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMCI is on the same level as its industry peers.
SMCI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
SMCI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 724.85 | ||
| EV/EBITDA | 18.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SMCI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SMCI's earnings are expected to grow with 25.38% in the coming years.
PEG (NY)6.92
PEG (5Y)0.28
EPS Next 2Y20.67%
EPS Next 3Y25.38%
5. Dividend
5.1 Amount
SMCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.21
+0.3 (+0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners53.07%
Inst Owner Change3.44%
Ins Owners11.78%
Ins Owner Change-0.43%
Market Cap25.79B
Analysts70
Price Target40.8 (-5.58%)
Short Float %19.65%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.25%
Min EPS beat(2)-39.29%
Max EPS beat(2)-7.21%
EPS beat(4)0
Avg EPS beat(4)-18.62%
Min EPS beat(4)-39.29%
Max EPS beat(4)-3.94%
EPS beat(8)4
Avg EPS beat(8)-3.04%
EPS beat(12)7
Avg EPS beat(12)3.13%
EPS beat(16)11
Avg EPS beat(16)8.63%
Revenue beat(2)0
Avg Revenue beat(2)-10.76%
Min Revenue beat(2)-16.76%
Max Revenue beat(2)-4.76%
Revenue beat(4)0
Avg Revenue beat(4)-7.09%
Min Revenue beat(4)-16.76%
Max Revenue beat(4)-1.86%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.87%
PT rev (1m)-10.97%
PT rev (3m)-19.88%
EPS NQ rev (1m)-37.75%
EPS NQ rev (3m)-39.25%
EPS NY rev (1m)-16.59%
EPS NY rev (3m)-20.46%
Revenue NQ rev (1m)-14.81%
Revenue NQ rev (3m)-14.04%
Revenue NY rev (1m)-4.8%
Revenue NY rev (3m)-10.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 13.54 | ||
| P/S | 1.2 | ||
| P/FCF | 724.85 | ||
| P/OCF | 167.35 | ||
| P/B | 4.04 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 18.73 |
EPS(TTM)2.28
EY5.28%
EPS(NY)3.19
Fwd EY7.39%
FCF(TTM)0.06
FCFY0.14%
OCF(TTM)0.26
OCFY0.6%
SpS36.14
BVpS10.69
TBVpS10.69
PEG (NY)6.92
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.72% | ||
| ROE | 18.04% | ||
| ROCE | 14.1% | ||
| ROIC | 12.7% | ||
| ROICexc | 17.46% | ||
| ROICexgc | 17.46% | ||
| OM | 6.09% | ||
| PM (TTM) | 5.34% | ||
| GM | 11.27% | ||
| FCFM | 0.16% |
ROA(3y)12.68%
ROA(5y)9.49%
ROE(3y)24.58%
ROE(5y)18.37%
ROIC(3y)20.63%
ROIC(5y)15.4%
ROICexc(3y)25.44%
ROICexc(5y)18.95%
ROICexgc(3y)25.44%
ROICexgc(5y)18.95%
ROCE(3y)22.9%
ROCE(5y)17.1%
ROICexcg growth 3Y20.5%
ROICexcg growth 5Y12.8%
ROICexc growth 3Y20.5%
ROICexc growth 5Y12.8%
OM growth 3Y32.35%
OM growth 5Y23.8%
PM growth 3Y34.73%
PM growth 5Y30.21%
GM growth 3Y-2.91%
GM growth 5Y-0.58%
F-Score4
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 70.05 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 230.05% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 52.01 | ||
| Cash Conversion | 11.29% | ||
| Profit Quality | 3.09% | ||
| Current Ratio | 6.66 | ||
| Quick Ratio | 3.95 | ||
| Altman-Z | 7.29 |
F-Score4
WACC8.76%
ROIC/WACC1.45
Cap/Depr(3y)182.6%
Cap/Depr(5y)181.87%
Cap/Sales(3y)0.74%
Cap/Sales(5y)1.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.77%
EPS 3Y106.48%
EPS 5Y66.56%
EPS Q2Q%-53.38%
EPS Next Y2.74%
EPS Next 2Y20.67%
EPS Next 3Y25.38%
EPS Next 5YN/A
Revenue 1Y (TTM)82.49%
Revenue growth 3Y61.52%
Revenue growth 5Y33.76%
Sales Q2Q%19.48%
Revenue Next Year48.3%
Revenue Next 2Y41.6%
Revenue Next 3Y36.28%
Revenue Next 5Y9.6%
EBIT growth 1Y14.28%
EBIT growth 3Y113.77%
EBIT growth 5Y65.6%
EBIT Next Year5.4%
EBIT Next 3Y25.65%
EBIT Next 5YN/A
FCF growth 1Y-94.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-76.21%
OCF growth 3YN/A
OCF growth 5YN/A