Super Micro Computer, Inc. (SMCI)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the $32.69 close on 2026-10-26, Super Micro looks statistically cheap: FairStock calculates a P/E of 10.03, P/B of 2.09, EV/EBITDA of 7.44, PEG of 0.03 and a Graham Number of $40.21, implying an 18.08% margin of safety. The filings explain the appeal. In fiscal 2026, the year ended 2026-06-30, revenue was $39.1B, net income $2.2B and diluted EPS $3.26, up from $22.0B, $1.0B and $1.68 in fiscal 2025, the year ended 2025-06-30. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $10.2B, net income $483.4M and diluted EPS $0.72, versus $4.6B, $108.8M and $0.17 in fiscal Q3 2025, the quarter ended 2025-03-31. FairStock calls it a FAST GROWER because profit grew 81.9% a year over five years and revenue 61.5%. But I am wary of hardware. ROCE is only 7.88% by FairStock's calculation despite a 21.47% ROE, and trailing free cash flow is -$7.0B, while FairStock's FCF yield is -32.5%. Debt/equity is 0.64, beta 2.00, FairStock's Altman Z is 2.46 and Piotroski is 6/9—neither a fortress nor a disaster. The business sells modular servers and storage, including liquid- and air-cooled AI servers; scale and speed matter, but pricing power is thin. Growth is real, but cash conversion and competitive durability are unproven. The stock is cheap if current earnings persist; it is not a safe bargain if AI-server demand normalizes or free cash flow stays negative.

In plain English: Super Micro Computer builds servers and storage systems, including servers designed for AI work. Sales and profits have grown very quickly, but the business is using a lot of cash and carries debt. At the 2026-10-26 close, the price looks low compared with reported profits, though the stock is volatile and hardware is competitive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer