SMCI

Super Micro Computer

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Computer Hardware

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Super Micro Computer designs and manufactures high-performance server and storage systems, generating cash by supplying customized, energy-efficient hardware to enterprises and data centers. Its competitive edge lies in rapid design-to-deployment cycles and tight integration of components tailored for high-density computing workloads. The company monetizes by capturing margin on system integration, configuration, and volume manufacturing rather than pure component innovation. Its moat is execution-driven: speed, customization capability, and supply chain agility allow it to win deployments where time-to-market and performance-per-watt matter most.

VALUATION

P/E

18.5

Market Cap ($M USD)

$15,168

Forward P/E

8.4

PEG

0.6

PRICE TO SALES

0.6

PRICE TO BOOK

2.2

EV / EBITDA

13.2

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.46

Next Year EPS Growth Estimate

$3.01

Next Year Revenue Growth Estimate

21.40%

Return on Equity (ROE)

12.50%

Operating Margin

3.70%

Debt-to-Equity

0.7

Piotroski F-Score

3

Altman Z-Score

2.2

Return on Invested Capital (ROIC)

8.10%%

Current Ratio

1.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

The market is pricing SMCI like a cyclical hardware name on the verge of normalization rather than a durable grower. A Forward P/E of 8.4 against a current P/E of 18.5 and a PEG Forward of 0.6 screams compression and skepticism, implying the market doubts the durability of earnings. Yet profitability metrics — 21.40% ROE and 12.50% operating margins — are not distressed levels. The concern is balance sheet fragility: a Debt/Equity ratio of 3.70 combined with an Altman Z-Score of 2.2 places the company in the gray zone of financial stress, not outright danger but far from fortress-grade. This is a statistically cheap stock with moderate financial risk — a classic high-upside, high-volatility setup where execution must remain flawless.

AI Exposure / Tech Reliance

As a Computer Hardware company in the Technology sector, SMCI sits directly in the infrastructure layer that enables AI compute and data center expansion. Hardware providers tied to server and high-performance computing trends are structurally exposed to AI capital expenditure cycles. The key question is not relevance but cyclicality — hardware demand surges with AI buildouts but can contract sharply if spending slows.

The Bull Case

From a GARP perspective, the valuation is the hook: Price/Sales of 0.6 and Price/Book of 2.2 are inexpensive for a company producing 21.40% ROE and 8.10% ROIC. The Forward P/E of 8.4 combined with a PEG of 0.6 suggests growth is being discounted aggressively, potentially too aggressively if earnings stabilize. Operating margins of 12.50% in hardware are respectable, and a Current Ratio of 1.7 signals adequate short-term liquidity. While the Piotroski F-Score of 3 is weak, the market cap of $15,168M against these profitability metrics suggests that even modest operational consistency could justify multiple expansion. This is the type of setup deep value funds target: compressed multiple, positive returns on capital, and operating profitability already established.

The Bear Case

The red flags are impossible to ignore. Debt/Equity at 3.70 is elevated for a hardware manufacturer, amplifying downside risk in any cyclical slowdown. The Altman Z-Score of 2.2 places the company in financial limbo, and a Piotroski F-Score of 3 signals deteriorating fundamental quality. The disparity between current EPS of 13.2 and next year’s estimated EPS of $1.46 implies a massive earnings normalization, which explains the market’s skepticism. Add in modest ROIC of 8.10% and thin 12.50% operating margins relative to leverage, and this becomes a balance-sheet-sensitive cyclical story rather than a stable compounder.

Market Sentiment & Smart Money

Short Interest %

19.70%

Analyst Consensus

2.95

Average Analyst Price Target

$34.13

Institutional Ownership %

56.30%

1-Year Beta

2.61

Insider Buying % (6 Mo)

13.90%%

Distance to 52-Week High

40.50%%

Distance to 52-Week Low

129.70%%