Super Micro Computer Stock Rising Twiggs Money Flow

Super Micro Computer stock has a rapidly rising Twiggs Money Flow while the stock consolidates setting up a compelling long entry.

Super Micro Computer stock has a rapidly rising Twiggs Money Flow.

Super Micro Computer reported earnings results on August 3, 2017. The company reported EPS of $0.39 versus the $0.36 estimate. Revenue also beating coming in at $717.90 million versus the $714.99 million estimate. Super Micro Computer’s revenue for the quarter was up an impressive 36.9% year-over-year.

Super Micro Computer stock is also a strong seasonal play. Over the next 12 weeks, Super Micro Computer stock has on average historically risen by 26.4% based on the past 10 years of stock performance. Super Micro Computer, Inc. has risen higher in 9 of those 10 years over the next 12 week period, corresponding to a historical probability of 90%.

Super Micro Computer Inc. makes end-to-end green computing solutions to the cloud computing, data center, enterprise information technology (IT), big data, high performance computing (HPC) and Internet of Things (IoT)/embedded markets. You can read more about the company on their website.

Super Micro Computer Stock

Super Micro Computer stock shows a rapidly rising Twiggs Money Flow.

The rising Twiggs Money Flow suggests the stock is being accumulated at current price levels.

SMCI does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a good opportunity for an entry. There is a resistance zone just above the current price starting at $21.48. Right above this resistance zone may be a good entry point.

Super Micro Computer Inc. Review
2.8

Summary

Profitability

SMCI's Return On Assets of 4.66% is amongst the best of the industry. SMCI does better than the industry average Return On Assets of 1.84%. SMCI has a Profit Margin of 2.74%. This is comparable to the industry average of 1.30%. SMCI has a Return On Equity of 8.66%. This is below the industry average of 11.97%. The Piotroski-F score of SMCI is 2. This is a very weak score and indicates problems in health and profitability for SMCI.

Valuation

Compared to an average industry Price/Earning Ratio of 23.03, SMCI is valued a bit cheaper than its industry peers. Compared to an average industry price book ratio of 3.19, SMCI is valued rather cheaply. On top of this, SMCI is cheaper than 82% of the companies listed in the same industry. When comparing the Enterprise Value to EBITDA ratio of SMCI to the average industry ratio of 13.41, SMCI is valued rather cheaply. With a Price/Earnings Ratio of 16.14, SMCI is valued correctly. With a Forward Price/Earnings Ratio of 15.92, SMCI is valued correctly. With a price book ratio of 1.32, SMCI is valued correctly. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

Growth

Measured over the past 5 years, SMCI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.69% on average per year. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last years. Revenue has grown by 14.19% in the past year. This is quite good. SMCI shows a strong growth in revenue. Measured over the last 5 years, revenue has been growing by 20.07% yearly. The earnings per share for SMCI have decreased by -3.45% in the last year. Based on estimates for the next 2 years, SMCI will show a small growth in Earnings Per Share. The EPS will grow by 6.45% on average per year.

Health

SMCI has a Current Ratio of 2.34. This indicates that SMCI is financially healthy and has no problem in meeting its short term obligations. SMCI is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.75. An Altman-Z score of 3.83 indicates that SMCI is not in any danger for bankruptcy at the moment. When comparing the Altman-Z score to an average industry Current Ratio of 2.20, SMCI is in better financial health than the average industry peer. A Quick Ratio of 1.15 indicates that SMCI should not have too much problems paying its short term obligations. When comparing the Quick Ratio of SMCI to the average industry Current Ratio of 1.36, SMCI is less able to pay its short term obligations than its industry peers. When comparing the Debt to Equity Ratio of SMCI to the average industry Debt to Equity Ratio of 0.00, SMCI required more debt to finance its operations than its industry peers. SMCI has a very weak Piotroski-F score of 2.00. This is an indication of health and profitability issues for SMCI.

Fundamental analysis provided by Chartmill. Get instant fundamental analysis on your favorite stocks here.

Sending
User Rating 0 (0 votes)
Comments Rating 0 (0 reviews)
Follow me

Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
Follow me

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

Leave a Reply

Sending