Super Micro Computer, Inc.
Super Micro Computer, Inc. Fundamental Analysis
Super Micro Computer, Inc. (SMCI) shows moderate financial fundamentals with a PE ratio of 21.83, profit margin of 3.11%, and ROE of 13.33%. The company generates $28.2B in annual revenue with strong year-over-year growth of 46.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMCI's fundamental strength across five key dimensions:
Efficiency Score
WeakSMCI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMCI shows balanced valuation metrics.
Growth Score
ModerateSMCI shows steady but slowing expansion.
Financial Health Score
ExcellentSMCI maintains a strong and stable balance sheet.
Profitability Score
WeakSMCI struggles to sustain strong margins.
Key Financial Metrics
Is SMCI Expensive or Cheap?
P/E Ratio
SMCI trades at 21.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SMCI's PEG of 2.23 indicates potential overvaluation.
Price to Book
The market values Super Micro Computer, Inc. at 2.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.31 times EBITDA. This signals the market has high growth expectations.
How Well Does SMCI Make Money?
Net Profit Margin
For every $100 in sales, Super Micro Computer, Inc. keeps $3.11 as profit after all expenses.
Operating Margin
Core operations generate 3.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.33 in profit for every $100 of shareholder equity.
ROA
Super Micro Computer, Inc. generates $3.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Super Micro Computer, Inc. generates limited operating cash flow of $550.96M, signaling weaker underlying cash strength.
Free Cash Flow
Super Micro Computer, Inc. generates weak or negative free cash flow of $441.69M, restricting financial flexibility.
FCF Per Share
Each share generates $0.74 in free cash annually.
FCF Yield
SMCI converts 2.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SMCI Stacks Against Its Sector Peers
| Metric | SMCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.83 | 35.19 | Better (Cheaper) |
| ROE | 13.33% | 1155.00% | Weak |
| Net Margin | 3.11% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.70 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.70 | 4.71 | Neutral |
| ROA | 3.12% | -314918.00% (disorted) | Weak |
SMCI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Super Micro Computer, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
465.11%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
968.47%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
4798.64%
Industry Style: Growth, Innovation, High Beta
High Growth