The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.38 is strong.
Super Micro Computer has a Altman Z-Score of 3.42, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Super Micro Computer's Altman Z-Score or its related term are showing as below:
XSWX:SMCI'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.3 Med: 4.11 Max: 12.4
Current: 3.38
During the past 13 years, Super Micro Computer's highest Altman Z-Score was 12.40. The lowest was 2.30. And the median was 4.11.
Super Micro Computer (XSWX:SMCI) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Super Micro Computer Altman Z-Score Related Terms
Super Micro Computer Altman Z-Score Historical Data
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The historical data trend for Super Micro Computer's Altman Z-Score 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.
XSWX:SMCI vs IONQ, P, HPQ: Altman Z-Score Comparison
For the Computer Hardware subindustry, Super Micro Computer's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Hardware Industry
For the Hardware industry and Technology sector, Super Micro Computer's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Super Micro Computer's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Super Micro Computer's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.5733
+
1.4
*
0.1913
+
3.3
*
0.0723
+
0.6
*
1.2852
+
1.0
*
1.454
=
3.42
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Super Micro Computer (XSWX:SMCI) has a Altman Z-Score of 3.42 as of Jun. 28, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Super Micro Computer and its competitors. This is 17% below median its historical median of 4.11. Over the past decade, Super Micro Computer's Altman Z-Score has ranged from 2.30 to 12.40. According to the industry distribution chart, Super Micro Computer ranks #1292 out of 2459 companies in the Hardware industry, placing it in the top 52.5%.
Is Super Micro Computer's Altman Z-Score too high?
Super Micro Computer's current Altman Z-Score of 3.42 is 17% below median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 12.40. The Hardware industry median Altman Z-Score is 3.59. Super Micro Computer's value of 3.42 is 4.7% below this industry median. Based on the distribution chart, Super Micro Computer ranks #1292 out of 2459 companies in the Hardware industry, which is below the industry midpoint. Overall, Super Micro Computer has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Super Micro Computer's Altman Z-Score compare to IONQ and P?
According to the Hardware industry distribution chart, Super Micro Computer ranks #1292 out of 2459 companies for Altman Z-Score. This places Super Micro Computer in the lower half of its industry. The industry median Altman Z-Score is 3.59. Super Micro Computer's value of 3.42 is 4.7% below this benchmark. Historically, Super Micro Computer's own Altman Z-Score has ranged from 2.30 to 12.40 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 3.59, Super Micro Computer has consistently been below 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 Altman Z-Score for a Hardware company?
The median Altman Z-Score among Hardware companies is 3.59, based on 2,459 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Super Micro Computer's current Altman Z-Score of 3.42 is 4.7% below 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Super Micro Computer and its competitors. For the Hardware industry, the median Altman Z-Score is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Super Micro Computer's current Altman Z-Score is 3.42, which is 17% below median its own 10-year median of 4.11. 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?
Super Micro Computer (XSWX:SMCI) has a current Altman Z-Score of 3.42. The stock's GF Value™ is CHF71.86, compared to a current price of CHF25.29 — trading 64.8% below its estimated fair value. The current Altman Z-Score is 3.42, which is 17% below median its 10-year median of 4.11 and 4.7% below the Hardware industry median of 3.59. Super Micro Computer's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Super Micro Computer (XSWX:SMCI), the current Altman Z-Score is 3.42 as of Jun. 28, 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 CHF25.29 is trading 64.8% below its estimated GF Value™ of CHF71.86.
Key valuation signals for XSWX:SMCI:
Altman Z-Score: 3.42 (17% below median its 10-year median of 4.11)
GF Value™: CHF71.86 vs. price of CHF25.29 (64.8% below fair value)
Industry Position: 4.7% below the Hardware median (#1292 of 2459)
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.
84GF Score
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