SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
NASDAQ:SMCI - Nasdaq - US86800U3023 - Common Stock - Currency: USD
SMCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While SMCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SMCI is growing strongly while it is still valued neutral. This is a good combination! These ratings would make SMCI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SMCI was profitable.
SMCI had a positive operating cash flow in the past year.
SMCI had positive earnings in each of the past 5 years.
In multiple years SMCI reported negative operating cash flow during the last 5 years.
1.2 Ratios
SMCI's Return On Assets of 10.72% is amongst the best of the industry. SMCI outperforms 87.50% of its industry peers.
SMCI's Return On Equity of 18.04% is amongst the best of the industry. SMCI outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.70%, SMCI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SMCI is above the industry average of 16.87%.
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
Looking at the Profit Margin, with a value of 5.34%, SMCI is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Profit Margin of SMCI has grown nicely.
SMCI's Operating Margin of 6.09% is in line compared to the rest of the industry. SMCI outperforms 56.25% of its industry peers.
SMCI's Operating Margin has improved in the last couple of years.
SMCI's Gross Margin of 11.27% is on the low side compared to the rest of the industry. SMCI is outperformed by 81.25% of its industry peers.
In the last couple of years the Gross Margin of SMCI has remained more or less at the same level.
| 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
SMCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SMCI has been increased compared to 1 year ago.
Compared to 5 years ago, SMCI has more shares outstanding
The debt/assets ratio for SMCI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.44 indicates that SMCI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.44, SMCI belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
SMCI has a debt to FCF ratio of 70.05. This is a negative value and a sign of low solvency as SMCI would need 70.05 years to pay back of all of its debts.
SMCI has a Debt to FCF ratio of 70.05. This is comparable to the rest of the industry: SMCI outperforms 46.88% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that SMCI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, SMCI perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 70.05 | ||
| Altman-Z | 7.44 |
ROIC/WACC1.45
WACC8.73%
2.3 Liquidity
A Current Ratio of 6.66 indicates that SMCI has no problem at all paying its short term obligations.
The Current ratio of SMCI (6.66) is better than 96.88% 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.
Looking at the Quick ratio, with a value of 3.95, SMCI belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 66.56% on average over the past years. This is a very strong growth
Looking at the last year, SMCI shows a very strong growth in Revenue. The Revenue has grown by 82.49%.
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
Based on estimates for the next years, SMCI will show a very strong growth in Earnings Per Share. The EPS will grow by 25.38% on average per year.
SMCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.60% yearly.
EPS Next Y2.74%
EPS Next 2Y20.67%
EPS Next 3Y25.38%
EPS Next 5YN/A
Revenue Next Year51.92%
Revenue Next 2Y43.67%
Revenue Next 3Y36.88%
Revenue Next 5Y9.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.76, which indicates a rather expensive current valuation of SMCI.
SMCI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. SMCI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.40, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, SMCI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMCI.
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 | 717.43 | ||
| EV/EBITDA | 19.56 |
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.
SMCI's earnings are expected to grow with 25.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.85
PEG (5Y)0.28
EPS Next 2Y20.67%
EPS Next 3Y25.38%
5. Dividend
5.1 Amount
No dividends for SMCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.77
-2.02 (-4.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners53.07%
Inst Owner Change3.37%
Ins Owners11.78%
Ins Owner Change-0.43%
Market Cap25.52B
Analysts69.52
Price Target45.82 (7.13%)
Short Float %21.14%
Short Ratio1.98
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)-14.03%
PT rev (3m)10.62%
EPS NQ rev (1m)-18.56%
EPS NQ rev (3m)-21.58%
EPS NY rev (1m)-16.59%
EPS NY rev (3m)-23.05%
Revenue NQ rev (1m)-7.51%
Revenue NQ rev (3m)-5.97%
Revenue NY rev (1m)-7.06%
Revenue NY rev (3m)-9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 13.4 | ||
| P/S | 1.18 | ||
| P/FCF | 717.43 | ||
| P/OCF | 165.64 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 19.56 |
EPS(TTM)2.28
EY5.33%
EPS(NY)3.19
Fwd EY7.46%
FCF(TTM)0.06
FCFY0.14%
OCF(TTM)0.26
OCFY0.6%
SpS36.14
BVpS10.69
TBVpS10.69
PEG (NY)6.85
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 | 7.44 |
F-Score4
WACC8.73%
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 Year51.92%
Revenue Next 2Y43.67%
Revenue Next 3Y36.88%
Revenue Next 5Y9.6%
EBIT growth 1Y14.28%
EBIT growth 3Y113.77%
EBIT growth 5Y65.6%
EBIT Next Year36.33%
EBIT Next 3Y30.97%
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