Super Micro Computer (SMCI)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
Super Micro Computer trades at $24.68, which is 152% below the $62.28 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 36 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 14.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Super Micro Computer
Super Micro Computer, Inc., together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the United States, Asia, Europe, and internationally. The company provides liquid and air-cooled AI servers for training and inferencing with integrated graphics processing units (GPUs) or PCIe based architectures; SuperBlade, MicroBlade, FlexTwin, GrandTwin, and BigTwin blade and multi-node systems; SuperStorage systems; Hyper, CloudDC, and WIO and rackmount systems; embedded (5G/IoT/Edge) systems; and MicroCloud server systems. It also offers workstations and networking devices; and modular server subsystems and accessories, including server boards, chassis, power supplies, and other accessories. In addition, the company provides remote system management solutions, such as Server Management suite comprising Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. Further, the company identifies service requirements; creates and executes project plans; conducts verification testing; offers training; and provides technical documentation. Additionally, it offers rack level services from design to deployment for full rack and cluster level deployments of AI and HPC datacenters; help desk services and on-site product support; and warranties, maintenance, and technical support services. The company serves enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing markets through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California.
SMCI passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Marshall Wace, MARSHALL WACE, LLP$163.67M · 0.2% of book
- Ken Griffin, CITADEL ADVISORS LLC$37.06M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$20.65M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$11.04M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$8.34M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Super Micro Computer (SMCI) undervalued?
Against our discounted cash flow estimate of $62.28, SMCI at $24.68 is 152% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own SMCI?
10 of the institutions we track reported a position in SMCI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is SMCI's P/E ratio?
SMCI trades at 14.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for SMCI, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.