Super Micro Computer, Inc. (NASDAQ: SMCI)
Technology; Communication hardware ; 30%-40% Upside
SMCI operates in an industry that can benefit from the growth of data centers, cloud computing and HPC.
Its short-term P/E reveals overvaluation. Nonetheless, the long-term PE valuation reveals 27% upside, thanks to the double-digit growth prospects of SMCI. EVA indicates that SMCI is significantly undervalued. Monte Carlo shows value, despite double-digit growth.
About the company, Super Micro Computer is a technology company that designs high-performance, high-efficiency server solutions and markets them to data centers, cloud operators, enterprises, scalable server farms, and Big Data and HPC labs. SMCI generated $1.47 billion in revenue during 2014, and achieved a 1.3 million server-unit/year run rate during 2014. Products of the company include servers and server subsystems, including chassis, power supplies and server boards. More than 800 customers purchased from SMCI during 2014, with no single customer accounting for more than 10% of its revenue. Regarding revenue classification, the company generated 50.5% of its revenue from optimized servers and 49.5% from subsystems and accessories during the fiscal year ended 2014.
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