Super Micro Computer Stock Beneish M Score

SMCI Stock  USD 816.54  34.57  4.06%   
This module uses fundamental data of Super Micro to approximate the value of its Beneish M Score. Super Micro M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Super Micro Piotroski F Score and Super Micro Altman Z Score analysis.
  
As of now, Super Micro's Total Debt is increasing as compared to previous years. The Super Micro's current Debt Non Current is estimated to increase to about 149.1 M, while Debt Current is projected to decrease to under 167.5 M. As of now, Super Micro's Receivables Turnover is decreasing as compared to previous years. The Super Micro's current Inventory Turnover is estimated to increase to 5.01, while Long Term Debt to Equity is projected to decrease to 0.05.
At this time, it appears that Super Micro Computer is a possible manipulator. The earnings manipulation may begin if Super Micro's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Super Micro executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Super Micro's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.16
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.27

Focus
Expense Coverage

0.8

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.8

Focus
Depreciation Resistance

1.07

Focus
Net Sales Growth

1.08

Focus
Financial Leverage Condition

1.0

Focus

Super Micro Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Super Micro's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense214.2 M246.8 M
Fairly Down
Slightly volatile
Revenues8.8 B8.2 B
Significantly Up
Slightly volatile
Trade and Non Trade Receivables1.4 B1.3 B
Significantly Up
Slightly volatile
Property Plant and Equipment Net294.7 M333.8 M
Fairly Down
Slightly volatile
Operating Income944.4 M875.3 M
Significantly Up
Slightly volatile
Net Cash Flow from Operations823.4 M763.1 M
Significantly Up
Slightly volatile
Liabilities Non Current406.9 M377.1 M
Significantly Up
Slightly volatile
Current Liabilities1.3 B1.6 B
Significantly Down
Slightly volatile
Total Liabilities2.1 BB
Significantly Up
Slightly volatile
Investments Non Current4.7 M5.3 M
Moderately Down
Slightly volatile
Investments4.7 M5.3 M
Moderately Down
Slightly volatile
Gross Margin0.20.21
Sufficiently Down
Slightly volatile
Depreciation Amortization and Accretion32.8 M40.1 M
Significantly Down
Slightly volatile
Debt Non Current149.1 M138.2 M
Significantly Up
Slightly volatile
Debt Current167.5 M195.6 M
Fairly Down
Slightly volatile
Total Debt360.2 M333.8 M
Significantly Up
Slightly volatile
Assets Non Current458.3 M569.6 M
Significantly Down
Slightly volatile
Current Assets3.9 B3.7 B
Significantly Up
Slightly volatile
Total Assets4.6 B4.2 B
Significantly Up
Slightly volatile

Super Micro Computer Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Super Micro's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Super Micro in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Super Micro's degree of accounting gimmicks and manipulations.

About Super Micro Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

32.81 Million

As of now, Super Micro's Depreciation Amortization and Accretion is increasing as compared to previous years.

Super Micro Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Super Micro. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Revenues3.3B3.6B5.2B7.1B8.2B8.8B
Total Assets1.9B2.2B3.2B3.7B4.2B4.6B
Current Assets1.6B1.9B2.8B3.2B3.7B3.9B
Assets Non Current325.9M374.7M398.8M495.3M569.6M458.3M
Total Liabilities852.9M1.1B1.8B1.7B2.0B2.1B
Current Liabilities707.6M968.9M1.5B1.4B1.6B1.3B
Total Debt29.4M98.2M596.8M290.3M333.8M360.2M
Debt Current23.7M63.5M449.1M170.1M195.6M167.5M
Operating Income85.7M123.9M335.2M761.1M875.3M944.4M
Investments2.4M1.7M2.7M4.6M5.3M4.7M

About Super Micro Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Super Micro Computer's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Super Micro using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Super Micro Computer based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high-performance server and storage solutions based on modular and open architecture. Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California. Super Micro operates under Computer Hardware classification in the United States and is traded on NASDAQ Exchange. It employs 4607 people.

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When determining whether Super Micro Computer offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Super Micro's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Super Micro Computer Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Super Micro Computer Stock:
Check out Super Micro Piotroski F Score and Super Micro Altman Z Score analysis.
Note that the Super Micro Computer information on this page should be used as a complementary analysis to other Super Micro's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Super Micro's price analysis, check to measure Super Micro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Super Micro is operating at the current time. Most of Super Micro's value examination focuses on studying past and present price action to predict the probability of Super Micro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Super Micro's price. Additionally, you may evaluate how the addition of Super Micro to your portfolios can decrease your overall portfolio volatility.
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Is Super Micro's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Super Micro. If investors know Super will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Super Micro listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.624
Earnings Share
12.81
Revenue Per Share
173.373
Quarterly Revenue Growth
1.032
Return On Assets
0.1282
The market value of Super Micro Computer is measured differently than its book value, which is the value of Super that is recorded on the company's balance sheet. Investors also form their own opinion of Super Micro's value that differs from its market value or its book value, called intrinsic value, which is Super Micro's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Super Micro's market value can be influenced by many factors that don't directly affect Super Micro's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Super Micro's value and its price as these two are different measures arrived at by different means. Investors typically determine if Super Micro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Super Micro's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.