Overall SMCI gets a fundamental rating of 6 out of 10. We evaluated SMCI against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While SMCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SMCI is growing strongly while it is still valued neutral. This is a good combination! This makes SMCI very considerable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SMCI had positive earnings in the past year.
In the past year SMCI had a positive cash flow from operations.
In the past 5 years SMCI has always been profitable.
In multiple years SMCI 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%, SMCI is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
SMCI has a better Return On Equity (12.15%) than 85.71% of its industry peers.
SMCI has a better Return On Invested Capital (6.99%) than 68.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SMCI is above the industry average of 16.06%.
The 3 year average ROIC (18.19%) for SMCI is well above the current ROIC(6.99%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	5.51%
ROE	12.15%
ROIC	6.99%

ROA(3y)12.21%

ROA(5y)10.1%

ROE(3y)23.46%

ROE(5y)20.12%

ROIC(3y)18.19%

ROIC(5y)16.22%

1.3 Margins

The Profit Margin of SMCI (3.77%) is better than 77.14% of its industry peers.
In the last couple of years the Profit Margin of SMCI has grown nicely.
SMCI's Operating Margin of 4.40% is fine compared to the rest of the industry. SMCI outperforms 62.86% of its industry peers.
In the last couple of years the Operating Margin of SMCI has grown nicely.
The Gross Margin of SMCI (10.08%) is worse than 80.00% of its industry peers.
In the last couple of years the Gross Margin of SMCI 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

SMCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SMCI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SMCI has been increased compared to 5 years ago.
The debt/assets ratio for SMCI is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.37 indicates that SMCI is not in any danger for bankruptcy at the moment.
The Altman-Z score of SMCI (4.37) is better than 77.14% of its industry peers.
SMCI has a debt to FCF ratio of 21.92. This is a negative value and a sign of low solvency as SMCI would need 21.92 years to pay back of all of its debts.
With a Debt to FCF ratio value of 21.92, SMCI perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that SMCI is somewhat dependend on debt financing.
The Debt to Equity ratio of SMCI (0.72) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.72
Debt/FCF	21.92
Altman-Z	4.37

ROIC/WACC0.92

WACC7.61%

2.3 Liquidity

SMCI has a Current Ratio of 5.39. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.39, SMCI belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
A Quick Ratio of 2.95 indicates that SMCI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.95, SMCI belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	5.39
Quick Ratio	2.95

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for SMCI have decreased strongly by -35.38% in the last year.
Measured over the past years, SMCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.41% on average per year.
SMCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.94%.
SMCI 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

Based on estimates for the next years, SMCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.24% on average per year.
Based on estimates for the next years, SMCI will show a very strong growth in Revenue. The Revenue will grow by 21.77% on average per year.

EPS Next Y1.9%

EPS Next 2Y24.03%

EPS Next 3Y23.92%

EPS Next 5Y12.24%

Revenue Next Year62.62%

Revenue Next 2Y40.84%

Revenue Next 3Y32.84%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.98, which indicates a rather expensive current valuation of SMCI.
Based on the Price/Earnings ratio, SMCI is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
SMCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 9.99, the valuation of SMCI can be described as very reasonable.
80.00% of the companies in the same industry are more expensive than SMCI, based on the Price/Forward Earnings ratio.
SMCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	18.98
Fwd PE	9.99

4.2 Price Multiples

SMCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 68.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SMCI is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	86.84
EV/EBITDA	20.3

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SMCI may justify a higher PE ratio.
SMCI's earnings are expected to grow with 23.92% in the coming years. This may justify a more expensive valuation.