Now trading at a price of $49.08, Super Micro Computer has moved 2.4% so far today.
Super Micro Computer returned gains of 14.1% last year, with its stock price reaching a high of $66.44 and a low of $17.25. Over the same period, the stock underperformed the S&P 500 index by -3.0%. The company's 50-day average price was $47.07. 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. Based in San Jose, CA, the Large-Cap Technology company has 6,238 full time employees. Super Micro Computer has not offered a dividend during the last year.
Negative Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,500 | $3,339 | $3,557 | $5,196 | $7,123 | $14,989 |
| Gross Margins | 14% | 16% | 15% | 15% | 18% | 14% |
| Net Margins | 2% | 3% | 3% | 5% | 9% | 8% |
| Net Income (M) | $72 | $84 | $112 | $285 | $640 | $1,153 |
| Net Interest Expense (M) | $7 | $2 | $2 | $6 | $10 | $23 |
| Depreciation & Amort. (M) | $24 | $28 | $28 | $25 | $27 | $30 |
| Diluted Shares (M) | 52 | 54 | 54 | 56 | 58 | 636 |
| Earnings Per Share | $1.38 | $1.57 | $2.09 | $5.08 | $11.02 | $1.81 |
| EPS Growth | n/a | 13.77% | 33.12% | 143.06% | 116.93% | -83.58% |
| Avg. Price | $19.52 | $26.5 | $36.93 | $43.34 | $284.26 | $47.94 |
| P/E Ratio | 13.56 | 16.46 | 16.71 | 7.95 | 23.49 | 26.49 |
| Free Cash Flow (M) | $238 | -$75 | $65 | -$486 | $627 | -$2,610 |
| CAPEX (M) | $25 | $44 | $58 | $45 | $37 | $124 |
| EV / EBITDA | 5.67 | 9.8 | 11.99 | 7.12 | 18.53 | 25.17 |
| Total Debt (M) | $24 | $44 | $203 | $598 | $290 | $2,174 |
| Net Debt / EBITDA | -2.35 | -2.38 | -0.3 | 0.81 | -0.55 | 0.6 |
| Current Ratio | 2.26 | 2.29 | 1.91 | 2.89 | 2.43 | 6.38 |
Super Micro Computer has rapidly growing revenues and increasing reinvestment in the business and an excellent current ratio of 6.38. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. However, the firm suffers from slimmer gross margins than its peers and negative cash flows.
an Increase in Expected Earnings Improves Its Value Outlook but Priced Beyond Its Margin of Safety:
Super Micro Computer has a trailing twelve month P/E ratio of 26.7, compared to an average of 30.44 for the Technology sector. Based on its EPS guidance of $4.24, the company has a forward P/E ratio of 11.1. Super Micro Computer's PEG ratio is 2.11 on the basis of the 12.7% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Super Micro Computer is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.63 is higher than the sector average of 4.19. The company's shares are currently trading 145.5% below their Graham number.
Super Micro Computer Has an Average Rating of Hold:
The 17 analysts following Super Micro Computer have set target prices ranging from $15.0 to $93.0 per share, for an average of $49.82 with a hold rating. The company is trading -1.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Super Micro Computer has an unusually large proportion of its shares sold short because 21.0% of the company's shares are sold short. Institutions own 52.0% of the company's shares, and the insider ownership rate stands at 16.59%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $3,246,786,808.
