In the world of growth stocks, SUPER MICRO COMPUTER INC (NASDAQ:SMCI) shines as a value proposition.

Our stock screener has spotted SUPER MICRO COMPUTER INC (NASDAQ:SMCI) as a growth stock which is not overvalued. NASDAQ:SMCI is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Insights: 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:

• The Earnings Per Share has grown by an impressive 85.45% over the past year.
• 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!
• 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 22.05% yearly.
• The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.

Analyzing Valuation Metrics

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:SMCI has received a 5 out of 10:

• SMCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 64.52% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.98. SMCI is valued slightly cheaper when compared to this.
• A Price/Forward Earnings ratio of 11.08 indicates a reasonable valuation of SMCI.
• Based on the Price/Forward Earnings ratio, SMCI is valued a bit cheaper than 70.97% of the companies in the same industry.
• SMCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.66.
• 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 22.05% in the coming years.

Analyzing Health Metrics

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 6.85. This indicates that SMCI is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.85, SMCI belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
• SMCI has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 4.69 indicates that SMCI has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 4.69, SMCI belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
• 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.
• The Quick ratio of SMCI (2.29) is better than 87.10% of its industry peers.

Profitability Insights: NASDAQ:SMCI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:SMCI, the assigned 7 is noteworthy for profitability:

• With an excellent Return On Assets value of 11.84%, SMCI belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
• SMCI has a Return On Equity of 20.59%. This is amongst the best in the industry. SMCI outperforms 87.10% of its industry peers.
• SMCI has a better Return On Invested Capital (14.50%) than 70.97% of its industry peers.
• SMCI had an Average Return On Invested Capital over the past 3 years of 20.84%. This is above the industry average of 18.10%.
• 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.
• SMCI's Profit Margin of 8.88% is amongst the best of the industry. SMCI outperforms 83.87% 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 74.19% of its industry peers.
• SMCI's Operating Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.