Super Micro Computer, Inc. (SMCI) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Computer Hardware
Is Super Micro Computer, Inc. a safe investment right now?
Trading at $28.43, Super Micro Computer, Inc. (SMCI) in the Technology sector carries a FairValueLabs fair value estimate of $32.40 — a margin of safety of 12.3%, placing it in the Buy Zone. An Altman Z-Score of 4.39 confirms the company is in the safe zone — financial distress is unlikely near-term. Our moat rating stands at 3.1/5 stars (Narrow moat), indicating moderate competitive positioning.
Could Super Micro Computer, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 4.39 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives SMCI's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.7103 | 1.2 | 0.85 |
| B · Retained Earnings / Total Assets | RE / TA | 0.245 | 1.4 | 0.34 |
| C · EBIT / Total Assets | EBIT / TA | 0.0907 | 3.3 | 0.3 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.2123 | 0.6 | 1.33 |
| E · Revenue / Total Assets | Rev / TA | 1.5674 | 1.0 | 1.57 |
How has SMCI's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 8.64 | Safe |
| 2023 | 9.78 | Safe |
| 2024 | 5.44 | Safe |
| 2025 | 4.39 | Safe |
Source: Calculated from SMCI's latest 10-K filing on SEC EDGAR.
What is Super Micro Computer, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $1.81 | Proprietary blend of reported actuals (2Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $1.68 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.25 | 15 analysts consensus |
| Trailing P/E | 21.1x | Current market pricing |
| Fair P/E (β discount) | 17.9x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $33.20 (15 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Super Micro Computer, Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up SMCI's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is SMCI's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 17.0% | — |
| 2023 | 33.8% | Rising |
| 2024 | 16.2% | Declining |
| 2025 | 11.5% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Super Micro Computer, Inc.'s dividend safe?
Super Micro Computer, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $22.0B | $15.0B | $5.2B | Rising |
| Net Income | $1.0B | $1.2B | $0.3B | Rising |
| Free Cash Flow | $1.5B | −$2.6B | −$0.5B | Rising |
| Gross Margin | 11.1% | 13.8% | 15.4% | Declining |
Common questions about Super Micro Computer, Inc.
Is Super Micro Computer, Inc. at risk of going bankrupt?
Super Micro Computer, Inc.'s Altman Z-Score of 4.39 places it in the safe zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Super Micro Computer, Inc.'s estimated fair value?
Our valuation model estimates Super Micro Computer, Inc.'s fair value at $32.40 per share. The current margin of safety is 12.2%. This estimate uses a PE-based approach with analyst consensus earnings.
Does Super Micro Computer, Inc. have a competitive moat?
Super Micro Computer, Inc. receives a moat rating of 3.1 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Does Super Micro Computer, Inc. pay a dividend?
Super Micro Computer, Inc. does not currently pay a regular dividend, or has suspended its dividend. Check the dividend safety section for the latest status.
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 20, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SMCI analysis methodology: How we calculate fair value, Z-Scores, and moat ratings