Looking for growth without the hefty price tag? Consider NASDAQ:SMCI.

Last update: Feb 5, 2025

Discover SUPER MICRO COMPUTER INC (NASDAQ:SMCI), an undervalued growth gem identified by our stock screener. NASDAQ:SMCI is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Assessing Growth for NASDAQ:SMCI

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:SMCI has earned a 8 for growth:

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.
Measured over the past years, SMCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 66.56% on average per year.
The Revenue has grown by 109.77% in the past year. This is a very strong growth!
The Revenue has been growing by 33.68% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 17.17% on average over the next years. This is quite good.
SMCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.60% yearly.

A Closer Look at Valuation for NASDAQ:SMCI

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:SMCI scores a 6 out of 10:

Based on the Price/Earnings ratio, SMCI is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
SMCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 9.80 indicates a reasonable valuation of SMCI.
Based on the Price/Forward Earnings ratio, SMCI is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.74. SMCI is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, SMCI is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
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.
SMCI's earnings are expected to grow with 17.17% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:SMCI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:SMCI scores a 6 out of 10:

SMCI has an Altman-Z score of 5.70. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
SMCI's Altman-Z score of 5.70 is amongst the best of the industry. SMCI outperforms 83.87% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SMCI is not too dependend on debt financing.
SMCI has a Current Ratio of 4.69. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
SMCI's Current ratio of 4.69 is amongst the best of the industry. SMCI outperforms 90.32% of its industry peers.
SMCI has a Quick Ratio of 2.29. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
SMCI's Quick ratio of 2.29 is amongst the best of the industry. SMCI outperforms 87.10% of its industry peers.

Exploring NASDAQ:SMCI's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:SMCI has achieved a 7:

SMCI has a better Return On Assets (11.84%) than 83.87% of its industry peers.
SMCI has a better Return On Equity (20.59%) than 87.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.50%, SMCI is in the better half of the industry, outperforming 70.97% 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 17.13%.
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 Profit Margin of 8.88%. This is amongst the best in the industry. SMCI outperforms 83.87% of its industry peers.
SMCI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.72%, SMCI is doing good in the industry, outperforming 74.19% of the companies in the same industry.
SMCI's Operating Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of SMCI for a complete fundamental analysis.

Keep in mind

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.