Is the business good?
How good a business is SMCI?
Super Micro Computer, Inc. earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
19%
Return on invested capital · cost of capital 9.0% · 10.0 points above what the capital costs: growth creates value
- Operating margin
- 4.5%
Operating margin · Computer Hardware median 4.9% · 12 months to Q3 2026
- Share count, year on year
- +11%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 2.2%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 2.6% |
| FY2021 | 3.5% |
| FY2022 | 6.5% |
| FY2023 | 11% |
| FY2024 | 8.1% |
| FY2025 | 5.7% |
Details›
- Gross margin12 months to Q3 2026
- 8.4%
- Operating margin12 months to Q3 2026
- 4.5%
- Net margin12 months to Q3 2026
- 3.7%
- Free cash flow margin
- −20%
- R&D as % of revenue
- 2.2%
- Revenue, trailing twelve months
- $33.7B
- Free cash flow, trailing twelve months
- −$6.85B
- Net income, trailing twelve months
- $1.25B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Computer Hardware
Ranks #5 of 11 by Smart Score