Now trading at a price of $457.27, Super Micro Computer has moved 4.6% so far today.
Super Micro Computer returned gains of 75.7% last year, with its stock price reaching a high of $1229.0 and a low of $226.59. Over the same period, the stock outperformed the S&P 500 index by 44.2%. More recently, the company's 50-day average price was $596.62. Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. The Large-Cap Technology company is based in San Jose, CA. Super Micro Computer has not offered a dividend during the last year.
Strong Revenue Growth but Slimmer Gross Margins than the Industry Average of 36.0%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,360 | $3,500 | $3,339 | $3,557 | $5,196 | $7,123 |
| Gross Margins | 13% | 14% | 16% | 15% | 15% | 18% |
| Net Margins | 1% | 2% | 3% | 3% | 5% | 9% |
| Net Income (M) | $46 | $72 | $84 | $112 | $285 | $640 |
| Net Interest Expense (M) | $6 | $7 | $2 | $2 | $6 | $10 |
| Depreciation & Amort. (M) | $22 | $24 | $28 | $28 | $32 | $35 |
| Diluted Shares (M) | 51 | 52 | 54 | 54 | 56 | 58 |
| Earnings Per Share | $0.89 | $1.39 | $1.6 | $2.09 | $5.32 | $11.43 |
| EPS Growth | n/a | 56.18% | 15.11% | 30.62% | 154.55% | 114.85% |
| Avg. Price | $19.32 | $19.52 | $26.5 | $36.93 | $43.34 | $457.27 |
| P/E Ratio | 20.55 | 13.56 | 16.06 | 16.86 | 7.82 | 37.82 |
| Free Cash Flow (M) | $60 | $238 | -$75 | $65 | -$486 | $627 |
| CAPEX (M) | $25 | $25 | $44 | $58 | $45 | $37 |
| EV / EBITDA | 7.89 | 5.67 | 9.8 | 11.99 | 6.97 | 29.84 |
| Total Debt (M) | $48 | $24 | $44 | $203 | $598 | $290 |
| Net Debt / EBITDA | -0.53 | -2.35 | -2.38 | -0.3 | 0.8 | -0.55 |
| Current Ratio | 2.1 | 2.26 | 2.29 | 1.91 | 2.89 | 2.43 |
Super Micro Computer benefits from rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and an excellent current ratio of 2.43. The company's financial statements show positive cash flows and healthy leverage levels. However, the firm has slimmer gross margins than its peers.
an Increase in Expected Earnings Improves Its Value Outlook but Trading Above Its Fair Price:
Super Micro Computer has a trailing twelve month P/E ratio of 29.7, compared to an average of 31.58 for the Technology sector. Based on its EPS guidance of $44.12, the company has a forward P/E ratio of 13.5. According to the 74.7% compound average growth rate of Super Micro Computer's historical and projected earnings per share, the company's PEG ratio is 0.4. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 25.5%. On this basis, the company's PEG ratio is 1.17. This implies that the shares are fairly valued. In contrast, Super Micro Computer is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.91 is higher than the sector average of 4.11. The company's shares are currently trading 291.7% below their Graham number.
There's an Analyst Consensus of Strong Upside Potential for Super Micro Computer:
The 14 analysts following Super Micro Computer have set target prices ranging from $325.0 to $1500.0 per share, for an average of $803.93 with a hold rating. The company is trading -43.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Super Micro Computer has an unusually large proportion of its shares sold short because 19.6% of the company's shares are sold short. Institutions own 57.0% of the company's shares, and the insider ownership rate stands at 14.36%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,726,096,433.
