Supermicro (SMCI)
Information Technology · $27.2B market cap · SEC CIK 0001375365
fundamentals score out of 100
Next reports on Nov 2, 2026, with analysts expecting $1.06 in earnings per share.
The case for SMCI
- Revenue up 77.8% on the year.
- Cheap on earnings at 12.2×, well under the market's usual 20×.
- Earns 25% back on shareholder equity.
- Earnings per share up 94.1%.
- A PEG of 0.13: a P/E of 12.2× is low for EPS growing 94%.
- Has compounded revenue at 61.5% a year over five years.
The case against
- Swings harder than the market (beta 2.19).
- Net margin of 6% is thinner than 88% of Information Technology companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 87 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 95 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 35 |
| Momentumhow the price has behaved lately | 60 |
| Stabilityhow violently it moves, what it owes and what it pays you | 26 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 12.2× |
|---|---|
| Price / book | 1.31× |
| Price / sales | 0.7× |
| Revenue growth (YoY) | +77.8% |
| EPS growth (YoY) | +94.1% |
| Gross margin | 11% |
| Operating margin | 7% |
| Net margin | 6% |
| Return on equity | 25% |
| Debt / equity | 0.60× |
| Current ratio | 3.87 |
| Dividend yield | none |
| Beta | 2.19 |
| 52-week range | $19.48 – $58.78 |
| Position in that range | 56% of the way up |
| 3-month return | +34.4% |
| 1-year return | -10.1% |
Five years of financials, as filed
Pulled from Supermicro's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $22.0B | $15.0B | $7.1B | $5.2B | $3.6B |
| Gross profit | $2.4B | $2.1B | $1.3B | $800M | $535M |
| Operating income | $1.3B | $1.2B | $761M | $335M | $124M |
| Net income | $1.0B | $1.2B | $640M | $285M | $112M |
| Operating cash flow | $1.7B | -$2.5B | $664M | -$441M | $123M |
| Capital expenditure | $127M | $124M | $36.8M | $45.2M | $58.0M |
| Total assets | $28.0B | $9.7B | $5.4B | $3.1B | $2.7B |
| Total liabilities | $21.0B | $3.5B | $2.3B | $1.3B | $1.5B |
| Shareholder equity | $7.0B | $6.2B | $3.1B | $1.8B | $1.2B |
| Cash | $4.1B | $1.4B | $726M | $305M | $247M |
| Long-term debt | — | — | $99.3M | $142M | $139M |
| Free cash flow | $1.5B | -$2.6B | $627M | -$486M | $64.9M |
| Gross margin | 11.1% | 13.8% | 18.0% | 15.4% | 15.0% |
| Operating margin | 5.7% | 8.1% | 10.7% | 6.5% | 3.5% |
| Net margin | 4.8% | 7.7% | 9.0% | 5.5% | 3.1% |
| Diluted shares | 628M | 602M | 560M | 536M | 535M |
Share count is up 17.4% over 4 years. Your slice has been diluted. Counts are restated for stock splits so the years compare.
What Supermicro says it does
Our Company We are a Silicon Valley-based provider of total information technology ("IT") solutions which address demanding workloads from the enterprise and cloud to the intelligent edge. We deliver rack-scale solutions optimized for various workloads, including artificial intelligence ("AI") and high-performance computing ("HPC"), where acceleration is critical. Additionally, we offer an extensive portfolio of server and storage solutions for enterprise data centers, cloud service providers ("CSPs"), and edge computing applications, such as 5G Telco, Retail and embedded. During fiscal year 2026, we advanced our transformation into a total data center infrastructure provider through our Data Center Building Block Solutions ® ("DCBBS"), an integrated offering that delivers complete, modular AI infrastructure from validated components and sub-systems, ranging from individual graphics processing units ("GPUs") and networking…
Risk factors SMCI lists in its 10-K
- Risks Related to our Global Operating Business and Industry
- Risks Related to Regulatory, Legal, Our Stock, and Other Matters
- Our operating results have in the past fluctuated and will likely fluctuate in the future, and if our operating results are below the expectations of securities analysts or investors, our stock price could decline
- If we fail to meet any publicly announced financial guidance or other expectations about our business, it could cause our stock to decline in value
- Failure to meet the evolving needs of our industry and markets may adversely impact our financial results
- We face risks related to recessions, inflation, stagflation, and other macroeconomic conditions
- Any failure, disruption or security breach or incident of or impacting our IT infrastructure or information management systems could have an adverse impact on our business and operations
- We may be unable to attract, retain, and motivate our executives and key employees
- Conflicts of interest may arise with Ablecom and Compuware, and they may adversely affect our operations
- Our reliance on Ablecom and Compuware could be subject to risks associated with our reliance on a limited source of contract manufacturing services and inventory warehousing
- If we lose Charles Liang, our President, Chief Executive Officer and Chairman, or any other key employee or are unable to attract additional key employees, we may not be able to implement our business strategy in a timely manner
- We rely on a limited number of suppliers for certain components used to manufacture our products
- Changing technology and intense competition require us to continuously innovate while controlling product costs, and our failure to do so may result in decreased revenues and profitability
- The AI industry has driven a significant portion of our recent success. The AI industry involves significant risks and uncertainties, and the use of AI by our workforce may present risks to our business