Super Micro ComputerXSWX:SMCI +0.47%61 Return-on-Tangible-Equity is 26.39% as of Mar. 2026, which is 148% above its 10-year median of 10.66. GuruFocus rates XSWX:SMCI with a GF Score™ of 61/100 and a GF Value™ of CHF67.58 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,377 Hardware companies, Super Micro Computer ranks better than 84.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Super Micro Computer's annualized net income for the quarter that ended in Mar. 2026 was CHF1,522 Mil. Super Micro Computer's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF5,768 Mil. Therefore, Super Micro Computer's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.39%.
The historical rank and industry rank for Super Micro Computer's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:SMCI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.71 Med: 10.66 Max: 37.67
Current: 18.47
During the past 13 years, Super Micro Computer's highest Return-on-Tangible-Equity was 37.67%. The lowest was 5.71%. And the median was 10.66%.
XSWX:SMCI's Return-on-Tangible-Equity is ranked better than 84.27% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs XSWX:SMCI: 18.47
Super Micro Computer (XSWX:SMCI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Super Micro Computer Return-on-Tangible-Equity Related Terms
Super Micro Computer Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Super Micro Computer's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Super Micro Computer Return-on-Tangible-Equity Chart
XSWX:SMCI vs HPQ, IONQ, P: Return-on-Tangible-Equity Comparison
For the Computer Hardware subindustry, Super Micro Computer's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Super Micro Computer Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Super Micro Computer's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Super Micro Computer's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.39% mean?
Super Micro Computer (XSWX:SMCI) has a Return-on-Tangible-Equity of 26.39% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Super Micro Computer and its competitors. This is 148% above median its historical median of 10.66. Over the past decade, Super Micro Computer's Return-on-Tangible-Equity has ranged from 5.71 to 37.67. According to the industry distribution chart, Super Micro Computer ranks #374 out of 2377 companies in the Hardware industry, placing it in the top 15.7%.
Is Super Micro Computer's Return-on-Tangible-Equity too high?
Super Micro Computer's current Return-on-Tangible-Equity of 26.39% is 148% above median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 37.67. The Hardware industry median Return-on-Tangible-Equity is 5.27. Super Micro Computer's value of 26.39% is 400.8% above this industry median. Based on the distribution chart, Super Micro Computer ranks #374 out of 2377 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Super Micro Computer has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Super Micro Computer's Return-on-Tangible-Equity compare to HPQ and IONQ?
According to the Hardware industry distribution chart, Super Micro Computer ranks #374 out of 2377 companies for Return-on-Tangible-Equity. This places Super Micro Computer in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.27. Super Micro Computer's value of 26.39% is 400.8% above this benchmark. Historically, Super Micro Computer's own Return-on-Tangible-Equity has ranged from 5.71 to 37.67 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 5.27, Super Micro Computer has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Super Micro Computer's current Return-on-Tangible-Equity of 26.39% is 400.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Super Micro Computer and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Super Micro Computer's current Return-on-Tangible-Equity is 26.39%, which is 148% above median its own 10-year median of 10.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Super Micro Computer stock overvalued right now?
Based on GuruFocus' analysis, Super Micro Computer (XSWX:SMCI) is currently considered Possible Value Trap. The stock's GF Value™ is CHF67.58, compared to a current price of CHF22.41 — trading 66.8% below its estimated fair value. The current Return-on-Tangible-Equity is 26.39%, which is 148% above median its 10-year median of 10.66 and 400.8% above the Hardware industry median of 5.27. Super Micro Computer's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Super Micro Computer (XSWX:SMCI), the current Return-on-Tangible-Equity is 26.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Super Micro Computer (XSWX:SMCI) Overvalued in 2026?
Based on GuruFocus' analysis, Super Micro Computer stock appears to be undervalued.
The current stock price of CHF22.41 is trading 66.8% below its estimated GF Value™ of CHF67.58.
GuruFocus considers Super Micro Computer to be Possible Value Trap.
Key valuation signals for XSWX:SMCI:
Return-on-Tangible-Equity: 26.39% (148% above median its 10-year median of 10.66)
GF Value™: CHF67.58 vs. price of CHF22.41 (66.8% below fair value)
Industry Position: 400.8% above the Hardware median (#374 of 2377)
No single metric tells the full story. See the XSWX:SMCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Super Micro Computer Inc provides high-performance server technology services to cloud computing, data centers, high-performance computing, and the Internet of Things embedded markets. Its solutions include servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, and server management. These turn-key solutions are designed, developed, validated, and installed for AI datacenters. The company has one operating segment that develops and provides high-performance server solutions based upon a, 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.
61GF Score
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