SMCISuper Micro Computer, Inc.
Is the business good?
More warning than reassurance: 1 of 9 health tests passed and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SMCI?
Super Micro Computer, Inc. earns 32% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 23 points above what the capital costs: growth creates value
- Operating margin
- 7.1%
Operating margin · Computer Hardware median 0.31% · 12 months to Q4 2026
- R&D as % of revenue
- 2.0%
R&D as % of revenue
- Gross margin
- 11%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 3.5% |
| FY2022 | 6.5% |
| FY2023 | 11% |
| FY2024 | 8.1% |
| FY2025 | 5.7% |
| FY2026 | 7.1% |
Details›
- Gross margin12 months to Q4 2026
- 11%
- Operating margin12 months to Q4 2026
- 7.1%
- Net margin12 months to Q4 2026
- 5.7%
- Free cash flow margin
- −18%
- R&D as % of revenue
- 2.0%
- Revenue, trailing twelve months
- $39.1B
- Free cash flow, trailing twelve months
- −$6.97B
- Net income, trailing twelve months
- $2.23B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 32%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.