About Super Micro Computer, Inc.
Super Micro Computer, Inc., together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the United States, Asia, Europe, and internationally. The company offers liquid and air-cooled AI servers for training and inferencing with integrated graphics processing units (GPUs) or PCIe based architectures; SuperBlade, MicroBlade, FlexTwin, GrandTwin, and BigTwin blade and multi-node systems; SuperStorage systems; Hyper, CloudDC, and WIO and rackmount systems; embedded (5G/IoT/Edge) systems; and MicroCloud server systems. It also provides workstations and networking devices; and modular server subsystems and accessories, including server boards, chassis, power supplies, and other accessories. In addition, the company offers remote system management solutions, such as Server Management suite comprising Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, SuperCloud Director, and SuperDoctor 5. Further, the company identifies service requirements; creates and executes project plans; conducts verification testing; offers training; and provides technical documentation. Additionally, it provides rack level services from design to deployment for full rack and cluster level deployments of AI and HPC datacenters; help desk services and on-site product support; and warranties, maintenance, and technical support services. The company serves enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing markets through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California.
Super Micro Computer, Inc. (SMCI) is a Technology company in the Computer Hardware industry with a market capitalisation of $28.1B. The stock trades at 13.31x trailing earnings.
- Sector
- Technology
- Industry
- Computer Hardware
- Market cap
- $28.1B
- P/E ratio
- 13.31
- Forward P/E
- 8.15
- EPS (TTM)
- $3.26
- Revenue (TTM)
- $39.1B
- Free cash flow
- -$8.2B
- Profit margin
- 5.7%
- Dividend yield
- 0%
- Beta
- 2.01
- Shares outstanding
- 646.9M
Financial health: Strong7.5/10
7 strengths, 2 concerns. Weakest points: gross margin, free cash flow.
- Debt to equity: 0.28 (Strong, benchmark < 0.5) — Debt of 0.28x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($3.5B net cash).
- Current ratio: 3.87 (Strong, benchmark > 1.5) — Short-term assets cover 3.87x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 21.5% (Strong, benchmark > 15%) — Earns 21.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 10.8% (Concern, benchmark > 40%) — Keeps 10.8% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 5.7% (Watch, benchmark > 10%) — Turns 5.7% of revenue into profit, short of the > 10% mark.
- Free cash flow: -$7.0B (Concern, benchmark positive) — Burned $7.0B of cash after capital spending, so operations did not fund themselves. It has deteriorated over the last 4 years.
- Revenue growth: 93.2% (Strong, benchmark > 10%) — Revenue changed 93.2% year on year, comfortably past the > 10% mark.
- Earnings growth: 434.7% (Strong, benchmark > 10%) — Earnings changed 434.7% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.91 (Strong, benchmark < 1) — At 0.91, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.