Super Micro Computer, Inc. (NASDAQ: SMCI)

Sector: Technology Industry: Computer Hardware CIK: 0001375365
Market Cap 18.00 Bn
P/B 2.57
P/E 20.62
P/S 0.64
ROIC (Qtr) 7.14
Div Yield % 0.00
Rev 1y % (Qtr) 123.36
Total Debt (Qtr) 4.88 Bn
Debt/Equity (Qtr) 0.70
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About

Super Micro Computer, Inc., commonly known as Supermicro, operates in the data center and cloud computing industry, providing accelerated compute platforms that are optimized for high-performance and high-efficiency server and storage systems. Supermicro's business activities revolve around the design, development, and sale of a wide range of products and services, including server and storage systems, subsystems and accessories, software management solutions, and global services. The company's operations span across various markets, including enterprise...

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Investment thesis

Bull case

  • Healthy cash reserves of 4.09B provide 20.28x coverage of short-term debt 201.78M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 440.09M exceeds capital expenditure of 108.87M by 4.04x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 28B provides 5.74x coverage of total debt 4.88B, indicating robust asset backing and low credit risk.
  • Tangible assets of 28B provide exceptional 21.49x coverage of deferred revenue 1.30B, showing strong service capability backing.
  • Operating cash flow of 548.96M provides strong 4.62x coverage of tax liabilities 118.70M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 548.96M barely covers its investment activities of (189.87M), with a coverage ratio of -2.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (189.87M) provide weak support for R&D spending of 700.15M, which is -0.27x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 548.96M provides insufficient coverage of deferred revenue obligations of 1.30B, which is 0.42x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 548.96M shows concerning coverage of stock compensation expenses of 347.94M, with a 1.58 ratio indicating potential earnings quality issues.
  • Free cash flow of 440.09M represents just 0.15x of debt issuance 2.90B, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Subsequent Event Type Breakdown of Revenue (2025)

Subsequent Event Type Breakdown of Revenue (2025)

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 179.24 Bn 53.40 21.22 0.00 Bn
2 WDC Western Digital Corp 98.04 Bn 26.19 9.13 4.66 Bn
3 STX Seagate Technology Holdings plc 88.97 Bn 45.16 8.85 4.50 Bn
4 DELL Dell Technologies Inc. 88.38 Bn 16.28 0.83 31.24 Bn
5 SNDK Sandisk Corp 84.68 Bn -81.35 9.48 0.60 Bn
6 PSTG Pure Storage, Inc. 23.69 Bn 181.72 6.80 0.23 Bn
7 HPQ Hp Inc 19.18 Bn 6.12 0.30 9.67 Bn
8 SMCI Super Micro Computer, Inc. 18.00 Bn 20.62 0.64 4.88 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 2.19
EV to Cash from Ops. EV/CFO 33.84 2.50
EV to Debt EV to Debt 3.81 44.88
EV to EBIT EV/EBIT 16.54 2.12
EV to EBITDA EV/EBITDA 16.83 -19.56
EV to Free Cash Flow [EV/FCF] EV/FCF 42.22 -8.34
EV to Market Cap EV to Market Cap 1.03 11.85
EV to Revenue EV/Rev 0.66 54.76
Price to Book Value [P/B] P/B 2.57 8.20
Price to Earnings [P/E] P/E 20.62 5.99
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.24
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.08
Dividend per Basic Share Div per Share (Qtr) 0.00 0.28
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.46
Interest Coverage Int. cover (Qtr) 13.06 -105.33
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 39.10 -18.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 186.09 858.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -35.94 -125.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.52 -43.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -29.41 -115.12
EBT Growth (1y) % EBT 1y % (Qtr) -33.42 -99.71
EPS Growth (1y) % EPS 1y % (Qtr) -40.89 -80.56
FCF Growth (1y) % FCF 1y % (Qtr) 120.27 665.24
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.08 34.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.00 0.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.27 7.23
Current Ratio Curr Ratio (Qtr) 1.70 13.52
Debt to Equity Ratio Debt/Equity (Qtr) 0.70 -0.79
Interest Cover Ratio Int Coverage (Qtr) 13.06 -105.33
Times Interest Earned Times Interest Earned (Qtr) 13.06 -105.33
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.30 -628.62
EBIT Margin % EBIT Margin % (Qtr) 4.00 -682.62
EBT Margin % EBT Margin % (Qtr) 3.70 -686.50
Gross Margin % Gross Margin % (Qtr) 8.00 35.11
Net Profit Margin % Net Margin % (Qtr) 3.10 -690.74