Super Micro Computer Inc

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SMCI : NASDAQ : Technology
$25.5 -0.05 | -0.2%
Today's Range: 25.4 - 25.9
Avg. Daily Volume: 350200.0
03/24/17 - 2:07 PM ET

Financial Analysis


SUPER MICRO COMPUTER INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. SUPER MICRO COMPUTER INC has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)651.95638.96
EBITDA ($mil)35.6752.33
EBIT ($mil)31.7649.13
Net Income ($mil)22.034.69


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)128.75169.89
Total Assets ($mil)1349.861192.64
Total Debt ($mil)127.1894.23
Equity ($mil)752.2677.99


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin14.9217.15
EBITDA Margin5.478.18
Operating Margin4.877.69
Sales Turnover1.661.86
Return on Assets4.388.22
Return on Equity7.8614.47
Debt Q2 FY17 Q2 FY16
Current Ratio2.192.08
Debt/Capital0.140.12
Interest Expense0.50.4
Interest Coverage63.91122.82


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)48.2947.73
Div / share0.00.0
EPS0.430.67
Book value / share15.5814.2
Institutional Own % n/a n/a
Avg Daily Volume346856.0346520.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 17.27 for the Computers & Peripherals industry and a discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 1.62 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.90. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SMCI 22.11 Peers 17.27   SMCI NM Peers 11.01

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SMCI is trading at a significant premium to its peers.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SMCI's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SMCI 11.61 Peers 16.85   SMCI 1.28 Peers 2.29

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SMCI is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SMCI trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SMCI 1.62 Peers 4.90   SMCI -39.69 Peers -6.81

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SMCI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SMCI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SMCI 0.54 Peers 2.84   SMCI 1.14 Peers 1.00

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SMCI is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SMCI has a sales growth rate that exceeds its peers.

 

 

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