Super Micro Computer, Inc. (SMCI) stock analysis

P/E below its 5-year median

Super Micro Computer's P/E of 5.9 is below its own 5-year median of 20.7.

P/E below the industry

Super Micro Computer's P/E of 5.9 is below the Computer and Office Equipment median of 25.3.

EV/EBITDA below its 5-year median

Super Micro Computer's EV/EBITDA of 2.3 is below its 5-year median of 14.3.

P/B below the industry

Super Micro Computer's price-to-book of 1.10 is below the Computer and Office Equipment median of 4.20.

Trading below fair value

The share price of $26.86 is below our fair value estimate of $118.23.

Margin of safety over 20%

The price is 77.3% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 76.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 41.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 361% over the last twelve months, against a 5-year average of 81.9% a year.

Growing faster than the industry

Revenue grew 156% over the last twelve months; the Computer and Office Equipment median is 11.3%.

Guidance raised

Super Micro Computer raised its first quarter of fiscal year 2027 Revenues outlook on Oct 20, 2026.

Gross margin improving

Gross margin was 11.7% over the last twelve months, against 10.1% a year earlier.

Return on equity over 15%

Return on equity was 32.4% over the last twelve months and averaged 26.2% over five years.

Return on capital over 10%

Return on invested capital was 64.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Super Micro Computer's return on equity of 32.4% is above the Computer and Office Equipment median of 7.5%.

Earnings grew over 5 years

Net income grew 81.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.8% over the last twelve months, against a 5-year average of 6.5%.

Net margin above the industry

Super Micro Computer's net margin of 6.8% is above the Computer and Office Equipment median of 4.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 18.4 times.

Short-term assets cover short-term debts

Current assets are 3.02 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.51; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Super Micro Computer has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.