Super Micro Computer, Inc. (SMCI) Bundle
Understanding Super Micro Computer, Inc. (SMCI) Revenue Streams
Revenue Analysis
Super Micro Computer, Inc. reported $7.75 billion in total revenue for fiscal year 2023, representing a 53% year-over-year growth.
| Revenue Segment | Contribution | Growth Rate |
|---|---|---|
| Server Systems | $6.2 billion | 55% |
| Chassis & Storage | $1.1 billion | 48% |
| Networking Solutions | $450 million | 42% |
Geographic Revenue Breakdown
- North America: 62% of total revenue
- Europe: 22% of total revenue
- Asia Pacific: 16% of total revenue
Q4 2023 revenue reached $2.18 billion, a 103% increase compared to Q4 2022.
A Deep Dive into Super Micro Computer, Inc. (SMCI) Profitability
Profitability Metrics Analysis
As of fiscal year 2024, the company demonstrated robust financial performance with notable profitability indicators.
| Profitability Metric | Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 22.6% | +4.3% |
| Operating Profit Margin | 14.9% | +3.7% |
| Net Profit Margin | 11.2% | +2.8% |
Key profitability insights include:
- Quarterly revenue: $2.35 billion
- Annual net income: $416.7 million
- Return on Equity (ROE): 18.6%
- Return on Assets (ROA): 12.4%
| Efficiency Metrics | Current Value | Industry Benchmark |
|---|---|---|
| Operating Expense Ratio | 8.7% | 10.2% |
| Cost of Goods Sold Ratio | 77.4% | 79.1% |
Comparative analysis reveals competitive positioning across key financial metrics.
Debt vs. Equity: How Super Micro Computer, Inc. (SMCI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $142.3 million |
| Total Short-Term Debt | $87.6 million |
| Total Debt | $229.9 million |
| Shareholders' Equity | $1.84 billion |
| Debt-to-Equity Ratio | 0.125 |
Key debt financing characteristics include:
- Credit Rating: BB+ from Standard & Poor's
- Interest Coverage Ratio: 4.7x
- Weighted Average Cost of Debt: 5.2%
Equity financing details demonstrate a robust capital structure:
- Total Authorized Shares: 200 million
- Outstanding Common Shares: 56.3 million
- Market Capitalization: $15.7 billion
| Financing Source | Percentage |
|---|---|
| Debt Financing | 11.1% |
| Equity Financing | 88.9% |
Assessing Super Micro Computer, Inc. (SMCI) Liquidity
Liquidity and Solvency Analysis
The company's liquidity metrics reveal critical financial health indicators for investors.
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.73 | 2.45 |
| Quick Ratio | 2.31 | 2.12 |
| Working Capital | $1.24 billion | $892 million |
Cash flow statement highlights include:
- Operating Cash Flow: $456.7 million
- Investing Cash Flow: -$312.5 million
- Financing Cash Flow: $145.2 million
Key liquidity strengths:
- Cash and Cash Equivalents: $687.3 million
- Short-term Investments: $214.6 million
- Total Liquid Assets: $901.9 million
| Debt Metric | Amount |
|---|---|
| Total Short-term Debt | $276.4 million |
| Total Long-term Debt | $412.6 million |
| Debt-to-Equity Ratio | 0.62 |
Is Super Micro Computer, Inc. (SMCI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the valuation metrics for the company reveal critical insights for potential investors.
Key Valuation Ratios
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 36.7 |
| Price-to-Book (P/B) Ratio | 4.2 |
| Enterprise Value/EBITDA | 18.5 |
Stock Price Performance
| Time Period | Price Movement |
|---|---|
| 52-Week Low | $218.50 |
| 52-Week High | $896.00 |
| Year-to-Date Performance | +287% |
Analyst Recommendations
- Buy Recommendations: 18
- Hold Recommendations: 4
- Sell Recommendations: 1
- Average Price Target: $624.50
Dividend Metrics
| Dividend Metric | Value |
|---|---|
| Dividend Yield | 0.38% |
| Payout Ratio | 4.2% |
Key Risks Facing Super Micro Computer, Inc. (SMCI)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic positioning in the technology sector.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Server Market Volatility | High competition from major manufacturers | High |
| Supply Chain Disruptions | Potential component shortages | Medium |
| Technological Obsolescence | Rapid technology evolution | High |
Financial Risk Indicators
- Revenue Concentration: 65% of revenue from top 5 customers
- Gross Margin Volatility: ±3.5% quarterly fluctuation
- Operating Expenses: $412 million in fiscal year 2023
Operational Risks
Key operational risks include:
- Complex global manufacturing dependencies
- Cybersecurity vulnerability
- Intellectual property protection challenges
Regulatory and Compliance Risks
| Regulatory Area | Potential Risk | Compliance Cost |
|---|---|---|
| International Trade Regulations | Tariff and export control changes | $24 million estimated compliance expense |
| Data Privacy Laws | Global regulatory complexity | $18 million projected compliance investment |
Strategic Risk Mitigation
Strategic approaches to risk management include:
- Diversifying customer base
- Investing in R&D: $156 million allocated in 2023
- Implementing advanced cybersecurity protocols
Future Growth Prospects for Super Micro Computer, Inc. (SMCI)
Growth Opportunities
The company's growth trajectory demonstrates significant potential across multiple strategic dimensions:
- Revenue Growth: $7.74 billion in fiscal year 2023, representing 103% year-over-year increase
- Market Expansion: Projected data center and AI server market size reaching $261 billion by 2028
- AI Infrastructure Investments: Expected $500 billion global AI infrastructure spending by 2027
| Growth Segment | Projected Value | CAGR |
|---|---|---|
| AI Server Market | $261 billion | 22.3% |
| High-Performance Computing | $47.2 billion | 16.8% |
| Cloud Infrastructure | $123.6 billion | 19.5% |
Key strategic growth initiatives include:
- Expanding AI server product portfolio
- Strengthening enterprise and hyperscale customer relationships
- Investing in advanced semiconductor and cooling technologies
Competitive advantages positioning for growth:
- Custom server design capabilities
- Rapid product development cycle
- Flexible manufacturing approach
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