SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
NASDAQ:SMCI - US86800U3023 - Common Stock
43.88 USD
+1.57 (+3.71%)
44.05 USD
+0.17 (+0.39%)
Overall SMCI gets a fundamental rating of 7 out of 10. We evaluated SMCI against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SMCI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make SMCI suitable 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.
In the past 5 years SMCI has always been profitable.
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
The Return On Assets of SMCI (7.48%) is better than 81.25% of its industry peers.
SMCI has a Return On Equity of 16.64%. This is amongst the best in the industry. SMCI outperforms 84.38% of its industry peers.
SMCI has a Return On Invested Capital of 9.76%. This is in the better half of the industry: SMCI outperforms 68.75% of its industry peers.
SMCI had an Average Return On Invested Capital over the past 3 years of 18.19%. This is above the industry average of 15.13%.
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
Looking at the Profit Margin, with a value of 4.77%, 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 5.70% 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.
With a Gross Margin value of 11.06%, SMCI is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
SMCI's Gross Margin has declined in the last couple of years.
| 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.
SMCI has more shares outstanding than it did 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 5.04 indicates that SMCI is not in any danger for bankruptcy at the moment.
SMCI has a better Altman-Z score (5.04) than 87.50% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.10, SMCI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
SMCI has a Debt/Equity ratio of 0.74. This is a neutral value indicating SMCI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, SMCI perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.23
WACC7.94%
2.3 Liquidity
SMCI has a Current Ratio of 5.32. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SMCI (5.32) is better than 93.75% of its industry peers.
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.
Looking at the Quick ratio, with a value of 3.32, SMCI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
SMCI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.89%.
SMCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.41% yearly.
SMCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.59%.
The Revenue has been growing by 45.76% on average over the past years. This is a very strong growth!
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 22.53% yearly.
Based on estimates for the next years, SMCI will show a quite strong growth in Revenue. The Revenue will grow by 19.86% on average per year.
EPS Next Y36.68%
EPS Next 2Y39.59%
EPS Next 3Y22.53%
EPS Next 5YN/A
Revenue Next Year35.07%
Revenue Next 2Y30%
Revenue Next 3Y29.55%
Revenue Next 5Y19.86%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.30, which indicates a rather expensive current valuation of SMCI.
Based on the Price/Earnings ratio, SMCI is valued a bit cheaper than 65.63% of the companies in the same industry.
SMCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
SMCI is valuated correctly with a Price/Forward Earnings ratio of 15.56.
The rest of the industry has a similar Price/Forward Earnings ratio as SMCI.
When comparing the Price/Forward Earnings ratio of SMCI to the average of the S&P500 Index (35.82), we can say SMCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMCI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SMCI is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.09 | ||
| EV/EBITDA | 18.94 |
4.3 Compensation for Growth
SMCI's 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.
A more expensive valuation may be justified as SMCI's earnings are expected to grow with 22.53% in the coming years.
PEG (NY)0.58
PEG (5Y)0.42
EPS Next 2Y39.59%
EPS Next 3Y22.53%
5. Dividend
5.1 Amount
No dividends for SMCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.88
+1.57 (+3.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners51.63%
Inst Owner Change-0.7%
Ins Owners11.39%
Ins Owner Change-1.8%
Market Cap26.19B
Analysts69.17
Price Target47.04 (7.2%)
Short Float %16.61%
Short Ratio2.22
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)2.66%
PT rev (3m)-8.61%
EPS NQ rev (1m)-10.06%
EPS NQ rev (3m)-37.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.66%
Revenue NQ rev (1m)-1.77%
Revenue NQ rev (3m)-13.63%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.19 | ||
| P/FCF | 17.09 | ||
| P/OCF | 15.78 | ||
| P/B | 4.16 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)2.06
EY4.69%
EPS(NY)2.82
Fwd EY6.43%
FCF(TTM)2.57
FCFY5.85%
OCF(TTM)2.78
OCFY6.34%
SpS36.82
BVpS10.56
TBVpS10.56
PEG (NY)0.58
PEG (5Y)0.42
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 | 5.04 |
F-Score6
WACC7.94%
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 Y36.68%
EPS Next 2Y39.59%
EPS Next 3Y22.53%
EPS Next 5YN/A
Revenue 1Y (TTM)46.59%
Revenue growth 3Y61.71%
Revenue growth 5Y45.76%
Sales Q2Q%8.45%
Revenue Next Year35.07%
Revenue Next 2Y30%
Revenue Next 3Y29.55%
Revenue Next 5Y19.86%
EBIT growth 1Y3.49%
EBIT growth 3Y54.89%
EBIT growth 5Y71.02%
EBIT Next Year46.34%
EBIT Next 3Y25.43%
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