Super Micro Computer, Inc. (SMCI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Allot Ltd.

Radware Ltd.

Datasea, Inc.

Universal Security Instruments, Inc.

Iteris, Inc.

Silicom Ltd.

Genasys, Inc.

SuperCom Ltd.

Super Micro Computer, Inc.

SmartRent, Inc.

Airspan Networks Holdings, Inc.

Why is Super Micro Computer, Inc. ?

The company has declared negative results in Mar 25 after 5 consecutive negative quarters

ROCE(HY) Lowest at 17.9%
INTEREST COVERAGE RATIO(Q) Lowest at 1,108.64
PRE-TAX PROFIT(Q) At USD 225.12 MM has Fallen at -38.16%

With ROE of 19.38%, it has a fair valuation with a 3.89 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 -15.44%, its profits have risen by 17.9%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.44% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Super Micro Computer, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Super Micro Computer, Inc.

-14.87%

-0.64

91.95%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.76%

EBIT Growth (5y)

71.02%

EBIT to Interest (avg)

50.45

Debt to EBITDA (avg)

0.25

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

2.53

Tax Ratio

10.31%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

63.93%

ROCE (avg)

22.41%

ROE (avg)

19.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.89

EV to EBIT

18.10

EV to EBITDA

17.45

EV to Capital Employed

3.90

EV to Sales

1.15

PEG Ratio

Dividend Yield

ROCE (Latest)

21.56%

ROE (Latest)

19.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,659.51 MM

CASH AND EQV(HY)

Highest at USD 7,709.49 MM

-27What is not working for the Company

ROCE(HY)

Lowest at 17.9%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,108.64

PRE-TAX PROFIT(Q)

At USD 225.12 MM has Fallen at -38.16%

NET PROFIT(Q)

At USD 197.35 MM has Fallen at -45.56%

RAW MATERIAL COST(Y)

Grown by 8.15% (YoY

INTEREST(Q)

Highest at USD 22.28 MM

Here's what is working for Super Micro Computer, Inc.

Operating Cash Flow

Highest at USD 1,659.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 7,709.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 18.64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 18.64 MM has Grown at 73.44%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Super Micro Computer, Inc.

Interest

At USD 22.28 MM has Grown at 66.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 1,108.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 225.12 MM has Fallen at -38.16%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 197.35 MM has Fallen at -45.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 22.28 MM

in the last five periods and Increased by 66.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 8.15% (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