ScoreWhy is Super Micro Computer, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 19.30%
- Healthy long term growth as Net Sales has grown by an annual rate of 53.79% and Operating profit at 61.89%
- Company has a low Debt to Equity ratio (avg) at times
2
The company declared negative results in Mar'25 after positive results in Dec'24
- INTEREST(HY) At USD 50.29 MM has Grown at 110.51%
- NET PROFIT(9M) At USD 784.84 MM has Grown at -29.13%
- ROCE(HY) Lowest at 13.19%
3
With ROE of 17.15%, it has a expensive valuation with a 5.19 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -21.32%, its profits have fallen by -11.2%
4
High Institutional Holdings at 65.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.35% over the previous quarter.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -21.32% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Super Micro Computer, Inc. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Super Micro Computer, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Super Micro Computer, Inc.
-21.32%
-0.83
73.13%
S&P 500
20.12%
1.04
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
53.79%
EBIT Growth (5y)
61.89%
EBIT to Interest (avg)
50.45
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
2.30
Tax Ratio
10.31%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
65.64%
ROCE (avg)
22.41%
ROE (avg)
19.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
5.19
EV to EBIT
25.79
EV to EBITDA
24.64
EV to Capital Employed
5.47
EV to Sales
1.47
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
21.20%
ROE (Latest)
17.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 548.95 MM
CASH AND EQV(HY)
Highest at USD 8,304.89 MM
NET SALES(Q)
Highest at USD 12,682.49 MM
OPERATING PROFIT(Q)
Highest at USD 496.72 MM
PRE-TAX PROFIT(Q)
Highest at USD 501.01 MM
NET PROFIT(Q)
Highest at USD 401.21 MM
EPS(Q)
Highest at USD 0.6
-17What is not working for the Company
INTEREST(HY)
At USD 50.29 MM has Grown at 110.51%
NET PROFIT(9M)
At USD 784.84 MM has Grown at -29.13%
ROCE(HY)
Lowest at 13.19%
RAW MATERIAL COST(Y)
Grown by 50.93% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 11.95 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.64 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.98 times
Here's what is working for Super Micro Computer, Inc.
Net Sales
At USD 12,682.49 MM has Grown at 123.36%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (USD MM)
Operating Cash Flow
Highest at USD 548.95 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 12,682.49 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 496.72 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 501.01 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 401.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.6
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 8,304.89 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at USD 22.42 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Super Micro Computer, Inc.
Interest
At USD 50.29 MM has Grown at 110.51%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 11.95 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.64 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.98 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 50.93% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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