In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Super Micro Computer SMCI against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within 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 | 75.12 | 18.27 | 5.92 | 11.29% | $0.37 | $0.56 | 103.25% |
| Apple Inc | 26.13 | 35.01 | 6.85 | 49.79% | $43.22 | $54.85 | 2.07% |
| Hewlett Packard Enterprise Co | 11.74 | 1.03 | 0.80 | 1.82% | $1.23 | $2.46 | -13.5% |
| NetApp Inc | 22.99 | 20.95 | 3.49 | 35.49% | $0.46 | $1.15 | 5.24% |
| Pure Storage Inc | 275.37 | 13.38 | 6.15 | 5.41% | $0.11 | $0.57 | -2.52% |
| Corsair Gaming Inc | 364 | 1.69 | 0.79 | 0.94% | $0.03 | $0.1 | 4.65% |
| Eastman Kodak Co | 6.81 | 0.39 | 0.37 | 0.21% | $0.03 | $0.05 | -9.84% |
| AstroNova Inc | 26.48 | 1.43 | 0.84 | 3.06% | $0.01 | $0.01 | -0.65% |
| Transact Technologies Inc | 10.17 | 1.21 | 0.66 | -0.16% | $0.0 | $0.01 | -26.13% |
| Average | 92.96 | 9.39 | 2.49 | 12.07% | $5.64 | $7.4 | -5.08% |
When analyzing Super Micro Computer, the following trends become evident:
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A Price to Earnings ratio of 75.12 significantly below the industry average by 0.81x suggests undervaluation. This can make the stock appealing for those seeking growth.
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The elevated Price to Book ratio of 18.27 relative to the industry average by 1.95x suggests company might be overvalued based on its book value.
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The Price to Sales ratio of 5.92, which is 2.38x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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With a Return on Equity (ROE) of 11.29% that is 0.78% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
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With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $370 Million, which is 0.07x below the industry average, the company may face lower profitability or financial challenges.
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With lower gross profit of $560 Million, which indicates 0.08x below the industry average, the company may experience lower revenue after accounting for production costs.
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The company's revenue growth of 103.25% exceeds the industry average of -5.08%, indicating strong sales performance and market outperformance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.
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.
When evaluating Super Micro Computer alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
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Super Micro Computer has a 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 suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.
Key Takeaways
For Super Micro Computer in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB ratio is high, suggesting investors are willing to pay a premium for its assets. The PS ratio is also high, reflecting strong sales relative to market value. In terms of ROE, EBITDA, gross profit, and revenue growth, Super Micro Computer lags behind its industry peers, indicating potential areas for improvement in profitability and operational efficiency.
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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