Super Micro Computer Inc

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SMCI : NASDAQ : Technology
$21.55 | %
Today's Range: 21.20 - 21.59
Avg. Daily Volume: 574,000
07/29/16 - 4:00 PM ET

Financial Analysis


SUPER MICRO COMPUTER INC's gross profit margin for the third quarter of its fiscal year 2016 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 average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 21.04% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)532.72471.23
EBITDA ($mil)28.0333.53
EBIT ($mil)24.4531.45
Net Income ($mil)16.6623.06


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)176.41109.25
Total Assets ($mil)1181.11960.96
Total Debt ($mil)93.846.47
Equity ($mil)708.83585.58


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin15.5316.74
EBITDA Margin5.267.11
Operating Margin4.596.67
Sales Turnover1.931.92
Return on Assets7.769.54
Return on Equity12.9415.66
Debt Q3 FY16 Q3 FY15
Current Ratio2.262.21
Debt/Capital0.120.07
Interest Expense0.420.28
Interest Coverage58.62113.53


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)48.3947.24
Div / share0.00.0
EPS0.320.44
Book value / share14.6512.4
Institutional Own % n/a n/a
Avg Daily Volume573661.0552210.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 12.73 for the Computers & Peripherals industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.37 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.70. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SUPER MICRO COMPUTER INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SMCI 11.33 Peers 12.73   SMCI 25.53 Peers 10.21

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SMCI is trading at a discount to its peers.

 

Premium. 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 is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SMCI 12.53 Peers 12.77   SMCI NM Peers 0.42

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SMCI 1.37 Peers 3.70   SMCI -2.21 Peers -21.27

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.

 

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

SMCI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SMCI 0.43 Peers 2.07   SMCI 23.21 Peers 4.40

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 significantly exceeds its peers.

 

 

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