Fact based stock research
Super Micro Computer (NasdaqGS:SMCI)

US86800U1043

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Super Micro Computer stock research in summary

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ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Super Micro Computer (Technology Hardware & Peripherals, USA) shares have much better financial characteristics than comparable stocks. Shares of Super Micro Computer are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), are safely financed (Safety Rank of 98, which means low debt burdens), but show below-average growth (Growth Rank of 43). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Super Micro Computer's financial characteristics. As the company Super Micro Computer's key financial metrics exhibit good value (Obermatt Value Rank of 69) but low growth (Obermatt Growth Rank of 43) while being safely financed (Obermatt Safety Rank of 98), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 69% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	69
Growth Rank	43
Safety Rank	98
Combined Rank	90

Country	USA
Industry	Technology Hardware & Peripherals
Index	Artificial Intelligence, NASDAQ
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Super Micro Computer

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	79	58	69
GROWTH
GROWTH	47	87	100	43
SAFETY
SAFETY	76	98	98	98
SENTIMENT
SENTIMENT	n/a	99	26	^new
360° VIEW
360° VIEW	n/a	100	91	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Super Micro Computer is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	81	79	58	69
GROWTH
GROWTH	47	87	100	43
SAFETY
SAFETY	76	98	98	98
COMBINED
COMBINED	90	98	98	90

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Super Micro Computer the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), Super Micro Computer shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Super Micro Computer. Price-to-Sales (P/S) is 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value regarding Super Micro Computer's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 100% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Super Micro Computer (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on Super Micro Computer's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	93	53	78
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	75	86	56	100
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	60	37	56
DIVIDEND YIELD
DIVIDEND YIELD	1	1	66	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	81	79	58	69

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Super Micro Computer; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Super Micro Computer shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Super Micro Computer. Profit Growth, with a rank of 73 (better than 73% of its competitors), and Capital Growth, with a rank of 78, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors, and Stock Returns are at a rank of 27. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	47	45	92	14
PROFIT GROWTH
PROFIT GROWTH	58	53	77	73
CAPITAL GROWTH
CAPITAL GROWTH	n/a	84	97	78
STOCK RETURNS
STOCK RETURNS	62	83	100	27
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	47	87	100	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Super Micro Computer.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives) for 2024, the company Super Micro Computer has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Super Micro Computer is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Super Micro Computer. Leverage is at 63, meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors. Refinancing is at a rank of 79, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 79% of its competitors. Finally, Liquidity is also good at a rank of 100, which means that the company generates more profit to service its debt than 100% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 98 (better than 98% compared with alternatives), Super Micro Computer has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Super Micro Computer but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	33	81	81	63
REFINANCING
REFINANCING	92	83	50	79
LIQUIDITY
LIQUIDITY	70	91	100	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	98	98	98

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Super Micro Computer and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	78	48	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	48	^new
MARKET PULSE
MARKET PULSE	n/a	90	51	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	99	26	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Super Micro Computer.
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