SUPER MICRO COMPUTER INC (1SMCI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SMCI - US86800U3023 - Common Stock
28.01 EUR
+0.66 (+2.41%)
1SMCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Technology Hardware, Storage & Peripherals industry. 1SMCI has only an average score on both its financial health and profitability. 1SMCI is not overvalued while it is showing excellent growth. This is an interesting combination. This makes 1SMCI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1SMCI was profitable.
- In the past year 1SMCI had a positive cash flow from operations.
- Each year in the past 5 years 1SMCI has been profitable.
- In multiple years 1SMCI reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.51%, 1SMCI is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- 1SMCI's Return On Equity of 12.15% is fine compared to the rest of the industry. 1SMCI outperforms 75.76% of its industry peers.
- With a Return On Invested Capital value of 5.77%, 1SMCI perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1SMCI is below the industry average of 17.59%.
- The last Return On Invested Capital (5.77%) for 1SMCI is well below the 3 year average (15.00%), which needs to be investigated, but indicates that 1SMCI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 12.15% | ||
| ROIC | 5.77% |
ROA(3y)12.21%
ROA(5y)10.1%
ROE(3y)23.46%
ROE(5y)20.12%
ROIC(3y)15%
ROIC(5y)13.38%
1.3 Margins
- 1SMCI has a Profit Margin of 3.77%. This is comparable to the rest of the industry: 1SMCI outperforms 48.48% of its industry peers.
- In the last couple of years the Profit Margin of 1SMCI has grown nicely.
- 1SMCI's Operating Margin of 4.40% is in line compared to the rest of the industry. 1SMCI outperforms 45.45% of its industry peers.
- In the last couple of years the Operating Margin of 1SMCI has grown nicely.
- 1SMCI has a worse Gross Margin (10.08%) than 87.88% of its industry peers.
- 1SMCI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.4% | ||
| PM (TTM) | 3.77% | ||
| GM | 10.08% |
OM growth 3Y-4.21%
OM growth 5Y17.33%
PM growth 3Y-4.54%
PM growth 5Y13.59%
GM growth 3Y-10.44%
GM growth 5Y-6.84%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1SMCI is creating value.
- 1SMCI has more shares outstanding than it did 1 year ago.
- 1SMCI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1SMCI is higher compared to a year ago.
2.2 Solvency
- 1SMCI has an Altman-Z score of 4.39. This indicates that 1SMCI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1SMCI (4.39) is better than 78.79% of its industry peers.
- 1SMCI has a debt to FCF ratio of 21.92. This is a negative value and a sign of low solvency as 1SMCI would need 21.92 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 21.92, 1SMCI perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that 1SMCI is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, 1SMCI perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.77
WACC7.45%
2.3 Liquidity
- A Current Ratio of 5.39 indicates that 1SMCI has no problem at all paying its short term obligations.
- 1SMCI's Current ratio of 5.39 is amongst the best of the industry. 1SMCI outperforms 93.94% of its industry peers.
- A Quick Ratio of 2.95 indicates that 1SMCI has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.95, 1SMCI belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.39 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
- 1SMCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.38%.
- The Earnings Per Share has been growing by 50.41% on average over the past years. This is a very strong growth
- 1SMCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.94%.
- 1SMCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.76% yearly.
EPS 1Y (TTM)-35.38%
EPS 3Y54.17%
EPS 5Y50.41%
EPS Q2Q%-52.7%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y61.71%
Revenue growth 5Y45.76%
Sales Q2Q%-15.49%
3.2 Future
- The Earnings Per Share is expected to grow by 12.24% on average over the next years. This is quite good.
- Based on estimates for the next years, 1SMCI will show a very strong growth in Revenue. The Revenue will grow by 21.77% on average per year.
EPS Next Y1.87%
EPS Next 2Y23.93%
EPS Next 3Y22.79%
EPS Next 5Y12.24%
Revenue Next Year62.58%
Revenue Next 2Y40.71%
Revenue Next 3Y32.54%
Revenue Next 5Y21.77%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.73, 1SMCI is valued on the expensive side.
- 1SMCI's Price/Earnings ratio is a bit cheaper when compared to the industry. 1SMCI is cheaper than 60.61% of the companies in the same industry.
- 1SMCI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.38, the valuation of 1SMCI can be described as reasonable.
- Based on the Price/Forward Earnings ratio, 1SMCI is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, 1SMCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
- 1SMCI's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, 1SMCI is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.1 | ||
| EV/EBITDA | 20.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as 1SMCI's earnings are expected to grow with 22.79% in the coming years.
PEG (NY)10.54
PEG (5Y)0.39
EPS Next 2Y23.93%
EPS Next 3Y22.79%
5. Dividend
5.1 Amount
- 1SMCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SUPER MICRO COMPUTER INC / 1SMCI.MI FAQ
Can you provide the ChartMill fundamental rating for SUPER MICRO COMPUTER INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1SMCI.MI.
What is the valuation status for 1SMCI stock?
ChartMill assigns a valuation rating of 4 / 10 to SUPER MICRO COMPUTER INC (1SMCI.MI). This can be considered as Fairly Valued.
What is the profitability of 1SMCI stock?
SUPER MICRO COMPUTER INC (1SMCI.MI) has a profitability rating of 5 / 10.
What is the valuation of SUPER MICRO COMPUTER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SUPER MICRO COMPUTER INC (1SMCI.MI) is 19.73 and the Price/Book (PB) ratio is 3.01.
Can you provide the expected EPS growth for 1SMCI stock?
The Earnings per Share (EPS) of SUPER MICRO COMPUTER INC (1SMCI.MI) is expected to grow by 1.87% in the next year.