In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Super Micro Computer SMCI in relation to its major competitors in the Technology Hardware, Storage & Peripherals industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.
Super Micro Computer Background
Super Micro Computer Inc provides high-performance server technology services to cloud computing, data center, Big Data, high-performance computing, and "Internet of Things" embedded markets. Its solutions include server, storage, blade and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Super Micro Computer Inc | 57.40 | 13.34 | 4.53 | 11.29% | $0.37 | $0.56 | 103.25% |
| Apple Inc | 28.34 | 37.97 | 7.43 | 49.79% | $43.22 | $54.85 | 2.07% |
| Hewlett Packard Enterprise Co | 9.68 | 0.92 | 0.67 | 3.07% | $1.23 | $2.56 | -6.61% |
| NetApp Inc | 26.12 | 22.64 | 3 | 28.36% | $0.39 | $1.11 | -6.07% |
| Pure Storage Inc | 174.59 | 10.79 | 4.79 | 6.59% | $0.11 | $0.55 | 12.84% |
| Corsair Gaming Inc | 446.67 | 2.07 | 0.98 | 0.94% | $0.03 | $0.1 | 14.89% |
| Eastman Kodak Co | 4.96 | 0.28 | 0.26 | 0.0% | $0.02 | $0.05 | -6.92% |
| AstroNova Inc | 38.62 | 1.49 | 0.87 | 3.21% | $0.01 | $0.01 | -4.71% |
| Transact Technologies Inc | 14.04 | 1.82 | 0.93 | 2.35% | $0.0 | $0.01 | -3.73% |
| Average | 92.88 | 9.75 | 2.37 | 11.79% | $5.63 | $7.4 | 0.22% |
By thoroughly analyzing Super Micro Computer, we can discern the following trends:
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With a Price to Earnings ratio of 57.4, which is 0.62x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 13.34 which exceeds the industry average by 1.37x.
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With a relatively high Price to Sales ratio of 4.53, which is 1.91x the industry average, the stock might be considered overvalued based on sales performance.
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The company has a lower Return on Equity (ROE) of 11.29%, which is 0.5% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
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Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $370 Million, which is 0.07x below the industry average, potentially indicating lower profitability or financial challenges.
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Compared to its industry, the company has lower gross profit of $560 Million, which indicates 0.08x below the industry average, potentially indicating lower revenue after accounting for production costs.
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The company's revenue growth of 103.25% is notably higher compared to the industry average of 0.22%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By analyzing Super Micro Computer in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:
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Super Micro Computer is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.12.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
Key Takeaways
For Super Micro Computer in the Technology Hardware, Storage & Peripherals industry, the PE, PB, and PS ratios indicate that the company is undervalued compared to its peers. However, the low ROE, EBITDA, gross profit, and high revenue growth suggest that Super Micro Computer may be facing challenges in generating profits and operational efficiency relative to its industry counterparts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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