SUPER MICRO COMPUTER INC (1SMCI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SMCI - US86800U3023 - Common Stock
28.01 EUR
+0.66 (+2.41%)
We assign a fundamental rating of 5 out of 10 to 1SMCI. 1SMCI was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. 1SMCI has an average financial health and profitability rating. 1SMCI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, 1SMCI could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year 1SMCI was profitable.
- 1SMCI had a positive operating cash flow in the past year.
- In the past 5 years 1SMCI has always been profitable.
- The reported operating cash flow has been mixed in the past 5 years: 1SMCI reported negative operating cash flow in multiple years.
1.2 Ratios
- 1SMCI has a better Return On Assets (5.51%) than 61.29% of its industry peers.
- 1SMCI has a better Return On Equity (12.15%) than 74.19% of its industry peers.
- 1SMCI's Return On Invested Capital of 5.77% is in line compared to the rest of the industry. 1SMCI outperforms 58.06% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1SMCI is in line with the industry average of 16.24%.
- The 3 year average ROIC (15.00%) for 1SMCI is well above the current ROIC(5.77%). The reason for the recent decline needs to be investigated.
| 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
- The Profit Margin of 1SMCI (3.77%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1SMCI has grown nicely.
- Looking at the Operating Margin, with a value of 4.40%, 1SMCI is in line with its industry, outperforming 45.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1SMCI has grown nicely.
- With a Gross Margin value of 10.08%, 1SMCI is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of 1SMCI has declined.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
- An Altman-Z score of 4.39 indicates that 1SMCI is not in any danger for bankruptcy at the moment.
- 1SMCI's Altman-Z score of 4.39 is amongst the best of the industry. 1SMCI outperforms 80.65% 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.
- 1SMCI has a Debt to FCF ratio of 21.92. This is comparable to the rest of the industry: 1SMCI outperforms 45.16% of its industry peers.
- 1SMCI has a Debt/Equity ratio of 0.72. This is a neutral value indicating 1SMCI is somewhat dependend on debt financing.
- 1SMCI's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. 1SMCI outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.77
WACC7.45%
2.3 Liquidity
- 1SMCI has a Current Ratio of 5.39. This indicates that 1SMCI is financially healthy and has no problem in meeting its short term obligations.
- 1SMCI has a better Current ratio (5.39) than 96.77% of its industry peers.
- A Quick Ratio of 2.95 indicates that 1SMCI has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.95, 1SMCI belongs to the best of the industry, outperforming 96.77% 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
- The Revenue has grown by 11.94% in the past year. This is quite good.
- Measured over the past years, 1SMCI shows a very strong growth in Revenue. The Revenue has been growing by 45.76% on average per year.
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.
- The Revenue is expected to grow by 21.77% on average over the next years. This is a very strong growth
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- 1SMCI is valuated rather expensively with a Price/Earnings ratio of 19.73.
- Compared to the rest of the industry, the Price/Earnings ratio of 1SMCI is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1SMCI is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 10.38, the valuation of 1SMCI can be described as reasonable.
- 67.74% of the companies in the same industry are more expensive than 1SMCI, based on the Price/Forward Earnings ratio.
- 1SMCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
- 1SMCI's Enterprise Value to EBITDA ratio is in line with the industry average.
- 61.29% of the companies in the same industry are cheaper than 1SMCI, based on the Price/Free Cash Flow ratio.
| 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 1SMCI does not grow enough to justify the current Price/Earnings ratio.
- 1SMCI's earnings are expected to grow with 22.79% in the coming years. This may justify a more expensive valuation.
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.