Investors should take note of NASDAQ:SMCI, a growth stock that remains attractively priced.

SUPER MICRO COMPUTER INC (NASDAQ:SMCI) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:SMCI is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:SMCI, the assigned 8 reflects its growth potential:

• SMCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.45%, which is quite impressive.
• SMCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.56% yearly.
• Looking at the last year, SMCI shows a very strong growth in Revenue. The Revenue has grown by 109.77%.
• Measured over the past years, SMCI shows a very strong growth in Revenue. The Revenue has been growing by 33.68% on average per year.
• SMCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.58% yearly.
• Based on estimates for the next years, SMCI will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:SMCI, the assigned 5 reflects its valuation:

• When comparing the Price/Forward Earnings ratio of SMCI to the average of the S&P500 Index (20.27), we can say SMCI is valued slightly cheaper.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent 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 40.58% in the coming years.

Health Insights: NASDAQ:SMCI

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:SMCI has earned a 6 out of 10:

• SMCI has an Altman-Z score of 7.73. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of SMCI (7.73) is better than 90.63% of its industry peers.
• A Debt/Equity ratio of 0.35 indicates that SMCI is not too dependend on debt financing.
• A Current Ratio of 4.69 indicates that SMCI has no problem at all paying its short term obligations.
• SMCI has a better Current ratio (4.69) than 84.38% of its industry peers.
• A Quick Ratio of 2.29 indicates that SMCI has no problem at all paying its short term obligations.
• SMCI has a Quick ratio of 2.29. This is in the better half of the industry: SMCI outperforms 78.13% of its industry peers.

How do we evaluate the Profitability for NASDAQ:SMCI?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:SMCI, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 11.84%, SMCI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
• With an excellent Return On Equity value of 20.59%, SMCI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
• The Return On Invested Capital of SMCI (14.50%) is better than 81.25% of its industry peers.
• SMCI had an Average Return On Invested Capital over the past 3 years of 20.84%. This is significantly above the industry average of 14.97%.
• The last Return On Invested Capital (14.50%) for SMCI is well below the 3 year average (20.84%), which needs to be investigated, but indicates that SMCI had better years and this may not be a problem.
• SMCI has a better Profit Margin (8.88%) than 84.38% of its industry peers.
• In the last couple of years the Profit Margin of SMCI has grown nicely.
• The Operating Margin of SMCI (9.72%) is better than 81.25% of its industry peers.
• In the last couple of years the Operating Margin of SMCI has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of SMCI contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.