Super Micro Computer Inc (SMCI, Financial) is a leading player in the hardware industry, known for its high-performance server technology. As of July 25, 2023, the company's stock price stands at $322.61, with a market cap of $16.94 billion. The stock has seen a gain of 4.28% today and a significant increase of 48.88% over the past four weeks. This article will delve into the GF Score analysis of SMCI, providing insights into its financial strength, profitability, growth, value, and momentum.
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. SMCI's GF Score is 81 out of 100, indicating good outperformance potential. This score suggests that SMCI could generate higher returns than stocks with lower GF Scores. 
Financial Strength Rank Analysis
The Financial Strength Rank measures a company's financial situation. SMCI's Financial Strength Rank is 9 out of 10, indicating a strong financial position. This is reflected in its high interest coverage of 70.60, low debt to revenue ratio of 0.03, and a robust Altman Z score of 10.78.
Profitability Rank Analysis
The Profitability Rank assesses a company's profitability and its consistency. SMCI's Profitability Rank is 9 out of 10, suggesting a high level of profitability. This is supported by its operating margin of 10.64%, a Piotroski F-Score of 7, and a consistent profitability trend over the past 10 years.
Growth Rank Analysis
The Growth Rank measures a company's revenue and profitability growth. SMCI's Growth Rank is 10 out of 10, indicating strong growth in both revenue and profitability. This is evident in its 5-year revenue growth rate of 10.60% and 3-year revenue growth rate of 12.70%.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples. SMCI's GF Value Rank is 1 out of 10, suggesting that the stock is currently overvalued.
Momentum Rank Analysis
The Momentum Rank assesses a company's stock price performance. SMCI's Momentum Rank is 3 out of 10, indicating a relatively low momentum in its stock price performance.
Competitive Analysis
When compared to its main competitors in the hardware industry, SMCI holds a strong position. Pure Storage Inc (PSTG, Financial) has a GF Score of 62, Western Digital Corp (WDC, Financial) has a GF Score of 69, and Seagate Technology Holdings PLC (STX, Financial) has a GF Score of 76. With a GF Score of 81, SMCI demonstrates a competitive edge in the industry.
In conclusion, Super Micro Computer Inc (SMCI, Financial) shows strong financial strength, high profitability, and robust growth. However, its current valuation and momentum may require further analysis for potential investors.
