Share count
628Mpeak FY2025
← All companies ← SMC Manual SMCIP → ← RDCM Technology Hardware SMCIP →
SMCI, Super Micro Computer Inc.
Technology Hardware consumer brand
We are a Silicon Valley-based provider of total IT solutions which address demanding workloads from the enterprise and cloud to the intelligent edge.
We deliver rack-scale solutions optimized for various workloads, including artificial intelligence ("AI") and high-performance computing ("HPC"), where acceleration is critical.
Our Total IT Solutions encompass complete servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems and server management.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$22.0B
+46.6% YoY · 46% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $33.7B 5-yr avg $10.6B
Revenue $10.2B +122.7% vs yr-ago qtr
Operating margin 6.1% yr-ago 3.2%
Net income $483M yr-ago $109M
Net margin 4.7% yr-ago 2.4%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Gross margin has run about 14% and operating margin about 3.8% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from 2.6% to 11% over the years, so the cost line is where the needle moves. Inventory runs near 25% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has sat near the cost of capital (median 12%). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →41% of revenue comes from outside the United States.
Revenue by geography, FY2025
- United States59%$13.1B
- Asia25%$5.5B
- Europe12%$2.7B
- Other3%$698M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $2.2B | $2.5B | $3.4B | $3.5B | $3.3B | $3.6B | $5.2B | $7.1B | $15.0B | $22.0B | $33.7B | RevenueRevenue |
| 15% | 14% | 13% | 14% | 16% | 15% | 15% | 18% | 14% | 11% | 8% | Gross marginGross mgn |
| 2% | 2% | 3% | 4% | 4% | 3% | 2% | 1% | 1% | 1% | 1% | SG&A / revenueSG&A/rev |
| 6% | 6% | 5% | 5% | 7% | 6% | 5% | 4% | 3% | 3% | 2% | R&D / revenueR&D/rev |
| $107M | $95M | $95M | $97M | $86M | $124M | $335M | $761M | $1.2B | $1.3B | $1.5B | Operating incomeOp. inc. |
| 4.8% | 3.8% | 2.8% | 2.8% | 2.6% | 3.5% | 6.5% | 10.7% | 8.1% | 5.7% | 4.5% | Operating marginOp. mgn |
| $72M | $67M | $46M | $72M | $84M | $112M | $285M | $640M | $1.2B | $1.0B | $1.2B | Net incomeNet inc. |
| 33% | 27% | 45% | 17% | 3% | 6% | 16% | 15% | 5% | 13% | 19% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| $108M | ($96M) | $84M | $263M | ($30M) | $123M | ($441M) | $664M | ($2.5B) | $1.7B | ($6.7B) | Operating cash flowOp. cash |
| $13M | $16M | $22M | $24M | $28M | $28M | $25M | $27M | $30M | $41M | $50M | DepreciationDeprec. |
| $6M | ($199M) | ($8M) | $145M | ($163M) | ($46M) | ($784M) | ($58M) | ($3.9B) | $255M | ($8.4B) | Working capital & otherWC & other |
| $34M | $29M | $25M | $25M | $44M | $58M | $45M | $37M | $124M | $127M | $156M | CapexCapex |
| 1.5% | 1.2% | 0.7% | 0.7% | 1.3% | 1.6% | 0.9% | 0.5% | 0.8% | 0.6% | 0.5% | Capex / revenueCapex/rev |
| $95M | ($113M) | $60M | $238M | ($59M) | $95M | ($466M) | $637M | ($2.5B) | $1.6B | ($6.7B) | Owner earningsOwner earn. |
| 4.3% | −4.5% | 1.8% | 6.8% | −1.8% | 2.7% | −9.0% | 8.9% | −16.8% | 7.4% | −20.0% | Owner earnings marginOE mgn |
| $74M | ($126M) | $60M | $238M | ($75M) | $65M | ($486M) | $627M | ($2.6B) | $1.5B | ($6.8B) | Free cash flowFCF |
| 3.3% | −5.1% | 1.8% | 6.8% | −2.2% | 1.8% | −9.4% | 8.8% | −17.4% | 7.0% | −20.3% | Free cash flow marginFCF mgn |
| — | — | — | — | — | $0 | $0 | $2M | $296K | $0 | $0 | AcquisitionsAcquis. |
| $0 | $18M | $0 | $0 | — | — | — | — | — | — | — | BuybacksBuybacks |
| 12% | 8% | 7% | 11% | 9% | 12% | 16% | 36% | 21% | 19% | 11% | ROICROIC |
| 10% | 9% | 5% | 8% | 8% | 10% | 20% | 32% | 21% | 17% | 16% | Return on equityROE |
| 10% | 9% | 5% | 8% | 8% | 10% | 20% | 32% | 21% | 17% | 16% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $179M | $111M | $115M | $248M | $211M | $232M | $267M | $440M | $1.7B | $5.2B | $1.3B | Cash & investmentsCash+inv |
| $175M | $324M | $451M | $394M | $404M | $464M | $835M | $1.1B | $2.7B | $2.2B | $8.4B | ReceivablesReceiv. |
| $517M | $737M | $853M | $670M | $851M | $1.0B | $1.5B | $1.4B | $4.3B | $4.7B | $11.1B | InventoryInvent. |
| $267M | $397M | $527M | $360M | $418M | $612M | $655M | $777M | $1.5B | $1.3B | $3.7B | Accounts payablePayables |
| $424M | $664M | $777M | $703M | $838M | $892M | $1.7B | $1.8B | $5.6B | $5.6B | $15.8B | Operating working capitalOper. WC |
| $954M | $1.3B | $1.5B | $1.4B | $1.6B | $1.9B | $2.8B | $3.2B | $8.9B | $12.3B | $21.6B | Current assetsCur. assets |
| $410M | $673M | $812M | $606M | $708M | $969M | $1.5B | $1.4B | $2.3B | $2.3B | $8.1B | Current liabilitiesCur. liab. |
| 2.3× | 1.9× | 1.9× | 2.3× | 2.3× | 1.9× | 1.9× | 2.3× | 3.8× | 5.2× | 2.7× | Current ratioCurr. ratio |
| $1.2B | $1.5B | $1.8B | $1.7B | $1.9B | $2.2B | $3.2B | $3.7B | $9.8B | $14.0B | $23.5B | Total assetsAssets |
| $94M | $162M | — | $24M | $29M | $98M | $597M | $290M | $1.7B | $4.6B | $4.7B | Total debtDebt |
| ($85M) | $51M | — | ($225M) | ($181M) | ($134M) | $329M | ($150M) | $28M | ($525M) | $3.4B | Net debt / (cash)Net debt |
| 67.4× | 41.3× | 16.5× | 14.5× | 38.3× | 49.9× | 52.3× | 72.6× | 62.6× | 21.0× | 11.0× | Interest coverageInt. cov. |
| $696M | $774M | $843M | $941M | $1.1B | $1.1B | $1.4B | $2.0B | $5.4B | $6.3B | $7.6B | Shareholders’ equityEquity |
| 0.8% | 0.8% | 0.7% | 0.6% | 0.6% | 0.8% | 0.6% | 0.8% | 1.5% | 1.4% | 1.2% | Stock comp / revenueSBC/rev |
| Per share | |||||||||||
| 518M | 517M | 522M | 517M | 528M | 535M | 536M | 560M | 602M | 628M | 674M | Shares out (diluted)Shares |
| $4.29 | $4.81 | $6.44 | $6.77 | $6.32 | $6.65 | $9.69 | $12.73 | $24.89 | $34.96 | $50.03 | Revenue / shareRev/sh |
| $0.14 | $0.13 | $0.09 | $0.14 | $0.16 | $0.21 | $0.53 | $1.14 | $1.91 | $1.67 | $1.85 | EPS (diluted)EPS |
| $0.18 | $-0.22 | $0.11 | $0.46 | $-0.11 | $0.18 | $-0.87 | $1.14 | $-4.18 | $2.58 | $-10.01 | Owner earnings / shareOE/sh |
| $0.14 | $-0.24 | $0.11 | $0.46 | $-0.14 | $0.12 | $-0.91 | $1.12 | $-4.33 | $2.44 | $-10.17 | Free cash flow / shareFCF/sh |
| $0.07 | $0.06 | $0.05 | $0.05 | $0.08 | $0.11 | $0.08 | $0.07 | $0.21 | $0.20 | $0.23 | Cap. spending / shareCapex/sh |
| $1.34 | $1.50 | $1.62 | $1.82 | $2.02 | $2.05 | $2.66 | $3.52 | $9.00 | $10.03 | $11.25 | Book value / shareBVPS |
Share counts before 2022 are restated ×10 for a stock split, so per-share figures sit on one basis.
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +26.2%/yr | +40.8%/yr |
| Owner earnings / share | +34.2%/yr | — |
| EPS | +31.8%/yr | +59.9%/yr |
| Capital spending / share | +13.3%/yr | +19.3%/yr |
| Book value / share | +25.0%/yr | +37.8%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.
ROIC
19%low FY2018
Gross margin
11%low FY2025
Net debt ÷ owner earnings
-0.3×peak FY2023
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
$1.6Bowner earningsvs.$1.0Bnet incomelow FY2024
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2016FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business earned $1.6B of owner earnings, the operating cash left after the $41M it takes just to hold its position. It put $86M more into growth; free cash flow, after that spending, was $1.5B.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | $1.0B | $1.2B | $640M | $285M | $112M |
| Depreciation & amortizationnon-cash charge added back | +$41M | +$30M | +$27M | +$25M | +$28M |
| Stock-based compensationreal costnon-cash, but a real cost | +$314M | +$232M | +$54M | +$33M | +$29M |
| Working capital & othertiming of cash in and out, other non-cash items | +$255M | −$3.9B | −$58M | −$784M | −$46M |
| Cash from operations | $1.7B | ($2.5B) | $664M | ($441M) | $123M |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$41M | −$30M | −$27M | −$25M | −$28M |
| Owner earnings | $1.6B | ($2.5B) | $637M | ($466M) | $95M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | −$86M | −$94M | −$10M | −$20M | −$30M |
| Free cash flow | $1.5B | ($2.6B) | $627M | ($486M) | $65M |
| Owner-earnings marginowner earnings ÷ revenue | 7% | -17% | 9% | -9% | 3% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $41M, roughly its depreciation, the rate its assets wear out). The other $86M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $314M), owner earnings is nearer $1.3B.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? 21.0×ComfortableOperating income $1.3B ÷ interest expense $60M
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- Net cashCash $5.2B − debt $4.6B
What this means
Cash and short-term investments exceed every dollar of debt by $525M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Long (60+ days)DSO 37 + DIO 87 − DPO 24 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.
Is it a good business?
- Solid through the cycle10-yr median, range 7%–36%; 19% latest = NOPAT $1.1B ÷ invested capital $5.8BIndustry peers: median 21%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 19% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Thin through the cycle10-yr median margin, range -17%–9%; latest $1.6B = operating cash $1.7B − maintenance capex $41MIndustry peers: median 11%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 2% median across 10 years. Treating stock comp as the real expense it is (less $314M of SBC) leaves $1.3B.
- Cash-backedCash from ops $1.7B ÷ net income $1.0B
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Reinvests most of itDividends + buybacks $0 ÷ Owner Earnings $1.6B
What this means
Of $1.6B Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 3.10×ExpandingCapex $127M ÷ depreciation $41M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 5 of 6 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size PassRevenue ≥ $2B · $22.0B
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 5.25×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $4.6B vs $10.0B WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability PassA profit every year (10-yr record) · no losses
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth PassEarnings +33% over the record · +1435%
What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.57/share (latest year $1.74), the averaged base the calculator's gate runs on, and book value is $10.48/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2016–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 10 of 10
What this means
Never lost money over the record, the earnings stability Graham insisted on.
- Return on capital ≥ 15% 4 of 9 yrs
What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin 4% → 8% (3-yr avg ends)
In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.
What this means
Through the cycle the operating margin widened — about 4% early to 8% lately, median 4% — pricing power intact or improving.
- Reinvestment, incremental ROIC 25%
What this means
Every extra dollar the business reinvested came back at a high incremental return — the lens GBM read for a moat that reinvests rather than merely harvests. The record and the 10-K are where you check whether the rate holds.
- Worst year 2020 · 2.6% op. margin
What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“Because we often acquire materials and key components on an as needed basis, we may be limited in our ability to effectively and efficiently respond to customer orders and warranty claims, which in some cases require the provision of replacement solutions, because of the then-current availability or the terms and prici…”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$21.6B
- Cash & short-term investments$1.3B
- Receivables$8.4B
- Inventory$11.1B
- Other current assets$761M
Current liabilities$8.1B
- Debt due within a year$48M
- Accounts payable$3.7B
- Other current liabilities$4.4B
Current ratio2.66×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.29×stricter: inventory excluded
Cash ratio0.16×strictest: cash alone against what's due
Working capital$13.4Bthe cushion left after near-term bills
Debt due this year vs. cash$48M due · $1.3B cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet
Cash runway0.2 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Revenue, latest quarter vs. a year ago+122.7%the freshest read on whether the business is still growing
Current ratio, recent quarters3.8× → 2.7×
Deeper floors
Tangible book value$7.6Bequity stripped of goodwill & intangibles
Net current asset value$5.7BGraham's net-net: current assets less all liabilities
Debt incl. operating leases$512M$378M of it operating leases
Deferred revenue$2.1Bcustomer cash collected before delivery; operating float
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2021 | Mr. Liang | $18.1M | $20.5M | $95M |
| 2022 | Mr. Liang | $1 | $3.7M | ($466M) |
| 2023 | Mr. Liang | $1 | $92.1M | $637M |
| 2024 | Mr. Liang | $28.1M | $409.4M | ($2.5B) |
| 2025 | Mr. Liang | $442 | −$190.3M | $1.6B |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership16.1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$314M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 25% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Inverting the record
Invert: instead of why Super Micro Computer Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.
3 of the 4 tests turned up something to look into; the other 1 came back clean.
- Look hereDid debt outgrow the business?$94M → $4.7B
Debt rose from $94M to $4.7B while owner earnings went from about $14M to ($87M): the borrowing grew and the earnings that would carry it are not there now. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.
- Look hereDid reported profit become cash?-0.04×
Across the record the business reported $3.6B of net income but generated ($152M) of operating cash, a -0.04-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.
- Look hereDid receivables and inventory outpace sales?31% → 58% of sales
Receivables and inventory grew from $692M to $19.5B while revenue grew 1415%: working capital is climbing faster than sales (31% of revenue then, 58% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
And these came back clean
- Is it less profitable than it was?
Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.
Peers, Technology Hardware
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| CSCOCisco Systems Inc. Common Stock (DE) | $56.7B | 63% | 25.7% | 21% | 26% |
| HPQHP Inc. | $55.3B | 19% | 6.6% | 64% | 6% |
| HPEHewlett Packard Enterprise Company | $34.3B | 56% | 4.2% | 3% | 5% |
| SMCISuper Micro Computer Inc. | $22.0B | 15% | 4.3% | 12% | 2% |
| WDCWestern Digital Corporation | $9.5B | 28% | 7.2% | 6% | 4% |
| PANWPalo Alto Networks Inc. | $9.2B | 72% | -4.0% | -10% | 38% |
| STXSeagate Technology Holdings PLC | $9.1B | 28% | 13.2% | 29% | 11% |
| ANETArista Networks Inc. | $9.0B | 64% | 32.4% | 33% | 33% |
| Group median | — | 42% | 6.9% | 16% | 8% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Super Micro Computer Inc. has delivered.
Super Micro Computer Inc.’s latest year shows negative owner earnings, below the record’s own through-cycle owner earnings. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
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Through the cycle, Super Micro Computer Inc. earns about $487M on its 2.2% median owner-earnings margin. This year’s 7.4% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.
Base
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The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth, delivered—
Owner-earnings growth, delivered—
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Free cash flow ($6.8B) on 601M shares outstanding, per the 10-Q cover, as of 2026-04-30; net debt $3.4B. The if-converted diluted count is 674M, 12% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($156M) runs well above depreciation ($50M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about ($6.7B), the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Super Micro Computer Inc. (SMCI), the owner's record," https://ownerscorecard.com/c/SMCI, data as of 2026-07-09.
Manual order: ← SMC its page in the Manual SMCIP →
Industry order: ← RDCM the Technology Hardware chapter SMCIP →