SUPER MICRO COMPUTER INC (SMCI) Stock Fundamental Analysis
NASDAQ:SMCI - Nasdaq - US86800U3023 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SMCI. SMCI was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. SMCI scores excellent on profitability, but 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!
1. Profitability
1.1 Basic Checks
SMCI had positive earnings in the past year.
In the past year SMCI has reported a negative cash flow from operations.
In the past 5 years SMCI has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: SMCI reported negative operating cash flow in multiple years.
1.2 Ratios
SMCI has a better Return On Assets (14.85%) than 93.75% of its industry peers.
SMCI has a Return On Equity of 23.16%. This is amongst the best in the industry. SMCI outperforms 90.63% of its industry peers.
With a decent Return On Invested Capital value of 16.62%, SMCI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SMCI is significantly above the industry average of 15.58%.
The 3 year average ROIC (20.63%) for SMCI is well above the current ROIC(16.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.85% | ||
| ROE | 23.16% | ||
| ROIC | 16.62% |
ROA(3y)12.68%
ROA(5y)9.49%
ROE(3y)24.58%
ROE(5y)18.37%
ROIC(3y)20.63%
ROIC(5y)15.4%
1.3 Margins
With a decent Profit Margin value of 6.94%, SMCI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SMCI has grown nicely.
The Operating Margin of SMCI (7.42%) is comparable to the rest of the industry.
SMCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 12.44%, SMCI is doing worse than 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of SMCI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.42% | ||
| PM (TTM) | 6.94% | ||
| GM | 12.44% |
OM growth 3Y32.35%
OM growth 5Y23.8%
PM growth 3Y34.73%
PM growth 5Y30.21%
GM growth 3Y-2.91%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SMCI is creating value.
SMCI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SMCI has more shares outstanding
SMCI has a worse debt/assets ratio than last year.
2.2 Solvency
SMCI has an Altman-Z score of 7.46. 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 7.46, SMCI belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
SMCI has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
SMCI's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. SMCI outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.46 |
ROIC/WACC1.95
WACC8.51%
2.3 Liquidity
A Current Ratio of 6.38 indicates that SMCI has no problem at all paying its short term obligations.
The Current ratio of SMCI (6.38) is better than 96.88% of its industry peers.
A Quick Ratio of 3.73 indicates that SMCI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.73, SMCI belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.38 | ||
| Quick Ratio | 3.73 |
3. Growth
3.1 Past
SMCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.95%, which is quite impressive.
SMCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.56% yearly.
Looking at the last year, SMCI shows a very strong growth in Revenue. The Revenue has grown by 125.01%.
Measured over the past years, SMCI shows a very strong growth in Revenue. The Revenue has been growing by 33.76% on average per year.
EPS 1Y (TTM)85.95%
EPS 3Y106.48%
EPS 5Y66.56%
EPS Q2Q%7.87%
Revenue 1Y (TTM)125.01%
Revenue growth 3Y61.52%
Revenue growth 5Y33.76%
Sales Q2Q%54.93%
3.2 Future
Based on estimates for the next years, SMCI will show a very strong growth in Earnings Per Share. The EPS will grow by 24.03% on average per year.
The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.
EPS Next Y27.91%
EPS Next 2Y26.7%
EPS Next 3Y24.03%
EPS Next 5YN/A
Revenue Next Year63.46%
Revenue Next 2Y48.13%
Revenue Next 3Y37.95%
Revenue Next 5Y9.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.13, the valuation of SMCI can be described as correct.
SMCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.13. SMCI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.06, the valuation of SMCI can be described as reasonable.
SMCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SMCI is cheaper than 65.63% 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 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SMCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as SMCI's earnings are expected to grow with 24.03% in the coming years.
PEG (NY)0.43
PEG (5Y)0.18
EPS Next 2Y26.7%
EPS Next 3Y24.03%
5. Dividend
5.1 Amount
No dividends for SMCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.89
-1.59 (-4.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners53.07%
Inst Owner Change0.02%
Ins Owners11.78%
Ins Owner Change0.96%
Market Cap18.93B
Analysts70
Price Target53.3 (67.14%)
Short Float %20.22%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.57%
Min EPS beat(2)-7.21%
Max EPS beat(2)-3.94%
EPS beat(4)1
Avg EPS beat(4)-5.62%
Min EPS beat(4)-24.06%
Max EPS beat(4)12.74%
EPS beat(8)4
Avg EPS beat(8)1.06%
EPS beat(12)8
Avg EPS beat(12)9.41%
EPS beat(16)12
Avg EPS beat(16)11.38%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-4.76%
Revenue beat(4)0
Avg Revenue beat(4)-4.03%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)6
Avg Revenue beat(12)1.81%
Revenue beat(16)9
Avg Revenue beat(16)2.35%
PT rev (1m)4.69%
PT rev (3m)30.29%
EPS NQ rev (1m)-13.01%
EPS NQ rev (3m)-20.25%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-5.75%
Revenue NQ rev (1m)-6.43%
Revenue NQ rev (3m)-9.82%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.03 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)2.63
EY8.25%
EPS(NY)3.52
Fwd EY11.03%
FCF(TTM)-3.66
FCFYN/A
OCF(TTM)-3.36
OCFYN/A
SpS35.08
BVpS10.51
TBVpS10.51
PEG (NY)0.43
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.85% | ||
| ROE | 23.16% | ||
| ROCE | 18.45% | ||
| ROIC | 16.62% | ||
| ROICexc | 20.04% | ||
| ROICexgc | 20.04% | ||
| OM | 7.42% | ||
| PM (TTM) | 6.94% | ||
| GM | 12.44% | ||
| FCFM | N/A |
ROA(3y)12.68%
ROA(5y)9.49%
ROE(3y)24.58%
ROE(5y)18.37%
ROIC(3y)20.63%
ROIC(5y)15.4%
ROICexc(3y)25.44%
ROICexc(5y)18.95%
ROICexgc(3y)25.44%
ROICexgc(5y)18.95%
ROCE(3y)22.9%
ROCE(5y)17.1%
ROICexcg growth 3Y20.5%
ROICexcg growth 5Y12.8%
ROICexc growth 3Y20.5%
ROICexc growth 5Y12.8%
OM growth 3Y32.35%
OM growth 5Y23.8%
PM growth 3Y34.73%
PM growth 5Y30.21%
GM growth 3Y-2.91%
GM growth 5Y-0.58%
F-Score4
Asset Turnover2.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 349.33% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 60.16 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.38 | ||
| Quick Ratio | 3.73 | ||
| Altman-Z | 7.46 |
F-Score4
WACC8.51%
ROIC/WACC1.95
Cap/Depr(3y)182.6%
Cap/Depr(5y)181.87%
Cap/Sales(3y)0.74%
Cap/Sales(5y)1.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)85.95%
EPS 3Y106.48%
EPS 5Y66.56%
EPS Q2Q%7.87%
EPS Next Y27.91%
EPS Next 2Y26.7%
EPS Next 3Y24.03%
EPS Next 5YN/A
Revenue 1Y (TTM)125.01%
Revenue growth 3Y61.52%
Revenue growth 5Y33.76%
Sales Q2Q%54.93%
Revenue Next Year63.46%
Revenue Next 2Y48.13%
Revenue Next 3Y37.95%
Revenue Next 5Y9.6%
EBIT growth 1Y77.58%
EBIT growth 3Y113.77%
EBIT growth 5Y65.6%
EBIT Next Year36.33%
EBIT Next 3Y30.97%
EBIT Next 5YN/A
FCF growth 1Y-1312.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-999.03%
OCF growth 3YN/A
OCF growth 5YN/A