SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
USA - NASDAQ:SMCI - US86800U3023 - Common Stock
52.5 USD
+0.11 (+0.21%)
52.32 USD
-0.18 (-0.34%)
We assign a fundamental rating of 6 out of 10 to SMCI. SMCI was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SMCI is growing strongly while it is still valued neutral. This is a good combination! These ratings could make SMCI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
SMCI had positive earnings in the past year.
SMCI had a positive operating cash flow in the past year.
Each year in the past 5 years SMCI has been profitable.
In multiple years SMCI reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.48%, SMCI belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
SMCI has a Return On Equity of 16.64%. This is amongst the best in the industry. SMCI outperforms 84.85% of its industry peers.
SMCI's Return On Invested Capital of 9.76% is fine compared to the rest of the industry. SMCI outperforms 69.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMCI is above the industry average of 14.92%.
The 3 year average ROIC (18.19%) for SMCI is well above the current ROIC(9.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 16.64% | ||
| ROIC | 9.76% |
ROA(3y)12.21%
ROA(5y)10.1%
ROE(3y)23.46%
ROE(5y)20.12%
ROIC(3y)18.19%
ROIC(5y)16.22%
1.3 Margins
SMCI has a better Profit Margin (4.77%) than 72.73% 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 5.70%, SMCI is in line with its industry, outperforming 57.58% of the companies in the same industry.
SMCI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.06%, SMCI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SMCI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.7% | ||
| PM (TTM) | 4.77% | ||
| GM | 11.06% |
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), SMCI is creating value.
The number of shares outstanding for SMCI has been increased compared to 1 year ago.
SMCI has more shares outstanding than it did 5 years ago.
SMCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.49 indicates that SMCI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.49, SMCI belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
SMCI has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as SMCI would need 3.10 years to pay back of all of its debts.
SMCI's Debt to FCF ratio of 3.10 is fine compared to the rest of the industry. SMCI outperforms 75.76% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that SMCI is somewhat dependend on debt financing.
SMCI has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.49 |
ROIC/WACC1.23
WACC7.95%
2.3 Liquidity
A Current Ratio of 5.32 indicates that SMCI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.32, SMCI belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
SMCI has a Quick Ratio of 3.32. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
SMCI has a better Quick ratio (3.32) than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The earnings per share for SMCI have decreased by -5.89% in the last year.
Measured over the past years, SMCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.41% on average per year.
SMCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.59%.
SMCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.76% yearly.
EPS 1Y (TTM)-5.89%
EPS 3Y54.17%
EPS 5Y50.41%
EPS Q2Q%-34.4%
Revenue 1Y (TTM)46.59%
Revenue growth 3Y61.71%
Revenue growth 5Y45.76%
Sales Q2Q%8.45%
3.2 Future
SMCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.85% yearly.
SMCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.86% yearly.
EPS Next Y26.8%
EPS Next 2Y26.39%
EPS Next 3Y27.85%
EPS Next 5YN/A
Revenue Next Year45.36%
Revenue Next 2Y34.53%
Revenue Next 3Y29.04%
Revenue Next 5Y19.86%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 25.49, which means the current valuation is very expensive for SMCI.
66.67% of the companies in the same industry are more expensive than SMCI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.86, SMCI is valued at the same level.
A Price/Forward Earnings ratio of 20.07 indicates a rather expensive valuation of SMCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMCI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, SMCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 20.07 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than SMCI, based on the Enterprise Value to EBITDA ratio.
SMCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.36 | ||
| EV/EBITDA | 23.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SMCI may justify a higher PE ratio.
SMCI's earnings are expected to grow with 27.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)0.51
EPS Next 2Y26.39%
EPS Next 3Y27.85%
5. Dividend
5.1 Amount
SMCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.5
+0.11 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners52.47%
Inst Owner Change-0.62%
Ins Owners14.02%
Ins Owner Change-1.51%
Market Cap31.20B
Analysts68.8
Price Target46.72 (-11.01%)
Short Float %19.09%
Short Ratio2.88
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)-23.84%
Min EPS beat(2)-39.29%
Max EPS beat(2)-8.4%
EPS beat(4)0
Avg EPS beat(4)-14.71%
Min EPS beat(4)-39.29%
Max EPS beat(4)-3.94%
EPS beat(8)3
Avg EPS beat(8)-6.13%
EPS beat(12)6
Avg EPS beat(12)-0.14%
EPS beat(16)10
Avg EPS beat(16)7.99%
Revenue beat(2)0
Avg Revenue beat(2)-10.49%
Min Revenue beat(2)-16.76%
Max Revenue beat(2)-4.23%
Revenue beat(4)0
Avg Revenue beat(4)-7.68%
Min Revenue beat(4)-16.76%
Max Revenue beat(4)-4.23%
Revenue beat(8)2
Avg Revenue beat(8)-2%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)7
Avg Revenue beat(16)0.44%
PT rev (1m)-0.68%
PT rev (3m)14.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.65%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-9.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)7.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 20.07 | ||
| P/S | 1.42 | ||
| P/FCF | 20.36 | ||
| P/OCF | 18.8 | ||
| P/B | 4.95 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 23.43 |
EPS(TTM)2.06
EY3.92%
EPS(NY)2.62
Fwd EY4.98%
FCF(TTM)2.58
FCFY4.91%
OCF(TTM)2.79
OCFY5.32%
SpS36.97
BVpS10.6
TBVpS10.6
PEG (NY)0.95
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 16.64% | ||
| ROCE | 10.73% | ||
| ROIC | 9.76% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 17.52% | ||
| OM | 5.7% | ||
| PM (TTM) | 4.77% | ||
| GM | 11.06% | ||
| FCFM | 6.97% |
ROA(3y)12.21%
ROA(5y)10.1%
ROE(3y)23.46%
ROE(5y)20.12%
ROIC(3y)18.19%
ROIC(5y)16.22%
ROICexc(3y)24.56%
ROICexc(5y)21.08%
ROICexgc(3y)24.56%
ROICexgc(5y)21.08%
ROCE(3y)20%
ROCE(5y)17.84%
ROICexcg growth 3Y-5.7%
ROICexcg growth 5Y17.61%
ROICexc growth 3Y-5.7%
ROICexc growth 5Y17.61%
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%
F-Score6
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.1 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 218.04% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 49.16 | ||
| Cash Conversion | 126.55% | ||
| Profit Quality | 146.09% | ||
| Current Ratio | 5.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 5.49 |
F-Score6
WACC7.95%
ROIC/WACC1.23
Cap/Depr(3y)208.9%
Cap/Depr(5y)194.33%
Cap/Sales(3y)0.64%
Cap/Sales(5y)0.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.89%
EPS 3Y54.17%
EPS 5Y50.41%
EPS Q2Q%-34.4%
EPS Next Y26.8%
EPS Next 2Y26.39%
EPS Next 3Y27.85%
EPS Next 5YN/A
Revenue 1Y (TTM)46.59%
Revenue growth 3Y61.71%
Revenue growth 5Y45.76%
Sales Q2Q%8.45%
Revenue Next Year45.36%
Revenue Next 2Y34.53%
Revenue Next 3Y29.04%
Revenue Next 5Y19.86%
EBIT growth 1Y3.49%
EBIT growth 3Y54.89%
EBIT growth 5Y71.02%
EBIT Next Year35.3%
EBIT Next 3Y29.53%
EBIT Next 5YN/A
FCF growth 1Y158.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y166.76%
OCF growth 3YN/A
OCF growth 5YN/A