Investors seeking growth at a reasonable cost should explore NASDAQ:SMCI.

Last update: Jan 15, 2025

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.

How We Gauge Growth for NASDAQ:SMCI

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:SMCI scores a 8 out of 10:

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.
The Earnings Per Share has been growing by 66.56% on average over the past years. This is a very strong growth
The Revenue has grown by 109.77% in the past year. This is a very strong growth!
SMCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.68% yearly.
Based on estimates for the next years, SMCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.17% 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.

What does the Valuation looks like for NASDAQ:SMCI

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:SMCI boasts a 6 out of 10:

Based on the Price/Earnings ratio, SMCI is valued a bit cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of SMCI to the average of the S&P500 Index (27.28), we can say SMCI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.26, the valuation of SMCI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMCI indicates a rather cheap valuation: SMCI is cheaper than 81.25% of the companies listed in the same industry.
SMCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
SMCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 68.75% of the companies in the same industry.
SMCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 17.17% in the coming years.

Exploring NASDAQ:SMCI's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:SMCI has achieved a 6 out of 10:

SMCI has an Altman-Z score of 5.83. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.83, SMCI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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 90.63% 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 amongst the best in the industry. SMCI outperforms 87.50% of its industry peers.

What does the Profitability looks like for NASDAQ:SMCI

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:SMCI scores a 7 out of 10:

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 87.50% of the companies in the same industry.
SMCI has a better Return On Invested Capital (14.50%) than 71.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMCI is above the industry average of 16.66%.
The 3 year average ROIC (20.84%) for SMCI is well above the current ROIC(14.50%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 8.88%, SMCI belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
SMCI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.72%, 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 Operating Margin of SMCI has grown nicely.

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

For an up to date full fundamental analysis you can check the fundamental report of SMCI

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.