SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
NASDAQ:SMCI - Nasdaq - US86800U3023 - Common Stock - Currency: USD
Taking everything into account, SMCI scores 6 out of 10 in our fundamental rating. SMCI was compared to 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 shows excellent growth, but is valued quite expensive already. These ratings would make SMCI suitable for growth 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.
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.
SMCI has a Return On Equity of 18.04%. This is amongst the best in the industry. SMCI outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for SMCI is above the industry average of 16.14%.
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
The Profit Margin of SMCI (5.34%) is better than 81.25% of its industry peers.
SMCI's Profit Margin has improved in the last couple of years.
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.
With a Gross Margin value of 11.27%, 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 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
SMCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SMCI has more shares outstanding
The number of shares outstanding for SMCI has been increased compared to 5 years ago.
Compared to 1 year ago, SMCI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.81 indicates that SMCI is not in any danger for bankruptcy at the moment.
The Altman-Z score of SMCI (7.81) is better than 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.
Looking at the Debt to FCF ratio, with a value of 70.05, SMCI is in line with its industry, outperforming 50.00% of the companies in the same industry.
SMCI has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.38, SMCI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 70.05 | ||
| Altman-Z | 7.81 |
ROIC/WACC1.45
WACC8.75%
2.3 Liquidity
A Current Ratio of 6.66 indicates that SMCI has no problem at all paying its short term obligations.
SMCI's Current ratio of 6.66 is amongst the best of the industry. SMCI outperforms 93.75% of its industry peers.
A Quick Ratio of 3.95 indicates that SMCI has no problem at all paying its short term obligations.
SMCI has a better Quick ratio (3.95) than 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.
SMCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 82.49%.
Measured over the past years, SMCI shows a very strong growth in Revenue. The Revenue has been growing by 33.76% on average per year.
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 22.40% on average per year.
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 Y-3.54%
EPS Next 2Y13.42%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue Next Year48.34%
Revenue Next 2Y41.39%
Revenue Next 3Y35.53%
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.
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
A Price/Earnings ratio of 21.60 indicates a rather expensive valuation of SMCI.
Compared to the rest of the industry, the Price/Earnings ratio of SMCI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. SMCI is valued slightly cheaper when compared to this.
SMCI is valuated rather expensively with a Price/Forward Earnings ratio of 17.46.
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 (21.76), we can say SMCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SMCI.
SMCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 826 | ||
| EV/EBITDA | 21.5 |
4.3 Compensation for Growth
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 22.40% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y13.42%
EPS Next 3Y22.4%
5. Dividend
5.1 Amount
No dividends for SMCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.24
-1.12 (-2.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners51.83%
Inst Owner Change0%
Ins Owners11.47%
Ins Owner Change-0.83%
Market Cap29.39B
Analysts70
Price Target40.8 (-17.14%)
Short Float %17.31%
Short Ratio1.81
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)0%
PT rev (3m)-23.47%
EPS NQ rev (1m)-2.73%
EPS NQ rev (3m)-39.45%
EPS NY rev (1m)-6.12%
EPS NY rev (3m)-24.59%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-14.56%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-9.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 17.46 | ||
| P/S | 1.36 | ||
| P/FCF | 826 | ||
| P/OCF | 190.71 | ||
| P/B | 4.61 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 21.5 |
EPS(TTM)2.28
EY4.63%
EPS(NY)2.82
Fwd EY5.73%
FCF(TTM)0.06
FCFY0.12%
OCF(TTM)0.26
OCFY0.52%
SpS36.14
BVpS10.69
TBVpS10.69
PEG (NY)N/A
PEG (5Y)0.32
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 | 7.81 |
F-Score4
WACC8.75%
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 Y-3.54%
EPS Next 2Y13.42%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue 1Y (TTM)82.49%
Revenue growth 3Y61.52%
Revenue growth 5Y33.76%
Sales Q2Q%19.48%
Revenue Next Year48.34%
Revenue Next 2Y41.39%
Revenue Next 3Y35.53%
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