Super Micro Computer Inc. (NASDAQ:SMCI)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited fluctuations over the analyzed periods. Beginning at 15.81 in June 2019, it rose to 17.04 in June 2020, then slightly decreased to 16.15 in June 2021, followed by a further decline to 12.72 in June 2022. However, a notable increase occurred in the last two years, reaching 21.10 in June 2023 and peaking at 23.45 in June 2024. This trend suggests growing investor optimism or expectations regarding future earnings potential in the most recent years.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio shows a similar pattern to the P/E ratio. It rose sharply from 11.69 in June 2019 to 16.77 in June 2020, decreased to 14.57 in June 2021, and further declined to 10.82 in June 2022. This was followed by a significant rise to 17.74 in June 2023 and a further increase to 22.32 in June 2024. The recent upward trend indicates elevated market valuations relative to operating profit, potentially reflecting improved profitability expectations or market sentiment.

Price to Sales (P/S) Ratio

There is a clear ascending trend in the Price to Sales ratio over the six-year period. Starting from a low of 0.32 in June 2019, it consistently increased each year, reaching 1.90 by June 2023. A slight decrease to 1.80 occurred in June 2024, but the overall pattern reflects heightened valuation multiples based on sales, which may suggest increasing sales growth prospects or shifts in market perception of the company’s revenue-generating capacity.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio demonstrated a notable increase over the years with some volatility. It increased steadily from 1.21 in June 2019 to 2.54 in June 2022, then surged markedly to 6.85 in June 2023 before declining to 4.99 in June 2024. This indicates that the market valuation relative to book value has risen substantially, particularly in recent years, which could be indicative of improved asset profitability, intangible asset value recognition, or strong investor confidence.

Share Price

The share price exhibited a steady increase over the analyzed period, starting at $2.27 in mid-2019 and rising incrementally to $6.93 by mid-2022. This growth accelerated sharply thereafter, with the share price surging to $25.52 in mid-2023 and further increasing to $45.54 by mid-2024. This indicates a substantial appreciation in market value, particularly in the most recent two years.

Earnings Per Share (EPS)

EPS showed a consistent upward trend across the years, beginning at $0.14 in 2019 and reaching $1.94 by 2024. Notably, the rate of EPS growth accelerated after 2021, with a sizable increase between 2021 ($0.22) and 2022 ($0.54), followed by continued strong improvement in subsequent periods. This reflects improving profitability and earnings performance over time.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuated between 2019 and 2024. It initially remained relatively stable around the 15–17 range from 2019 to 2021, then declined to its lowest point at 12.72 in 2022, suggesting the share price growth at that time was more closely aligned with earnings increases. However, from 2022 onwards, the P/E ratio rose significantly to 21.1 in 2023 and further to 23.45 in 2024. This increase indicates that the market began to value the company’s earnings more highly, potentially reflecting greater investor optimism or expectations of continued earnings growth.

Overall Insights

The financial data reveals a company experiencing strengthened profitability and pronounced market appreciation over the five-year span. The rapid escalation in both share price and EPS from 2022 to 2024 highlights a period of robust growth. The rising P/E ratio in the last two years may suggest an increasing investor confidence or speculation about future performance beyond current earnings. This combination of factors points to a favorable financial trajectory, driven by improved earnings and buoyant market sentiment.

Share Price

The share price demonstrated a consistent upward trajectory over the analyzed period, increasing from $2.27 in 2019 to $45.54 in 2024. Notably, the price saw a moderate rise between 2019 and 2021, followed by a sharp escalation between 2022 and 2024, indicating increased market confidence or positive developments impacting valuation.

Operating Profit Per Share

Operating profit per share showed fluctuations but an overall increasing trend. It started at $0.19 in 2019, dipped slightly in 2020 to $0.16, then progressively increased each subsequent year, reaching $2.04 in 2024. The steady improvement reflects enhanced operational efficiency and profitability over time.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio exhibited variability, starting at 11.69 in 2019 and rising to 16.77 in 2020. It then decreased in 2021 and 2022 to lows of 14.57 and 10.82 respectively, suggesting that operating profits were growing at a pace comparable or superior to share price at that time. However, a sharp increase was observed in 2023 and 2024, reaching 17.74 and 22.32, indicating that share price growth outpaced the increase in operating profits, possibly reflecting heightened investor expectations or market optimism beyond fundamental earnings improvements.

The financial data over the six-year period reveals several significant trends in the company's market valuation and sales performance.

Share Price

The share price demonstrated a consistent upward trajectory, increasing from $2.27 at mid-2019 to $45.54 by mid-2024. This represents a substantial appreciation, with especially rapid growth visible between 2022 and 2024, where the share price rose nearly sevenfold.

Sales per Share

Sales per share fluctuated slightly in the early years, dipping from $6.99 in 2019 to $6.37 in 2020 before returning to a marginally higher level in 2021 at $7.03. From 2021 onwards, sales per share saw a strong upward trend, reaching $25.26 by mid-2024, more than tripling over the last three years.

Price-to-Sales (P/S) Ratio

The P/S ratio generally rose from 0.32 in 2019 to a peak of 1.9 in 2023, indicating that the stock price increased at a faster rate than sales per share during much of this period. However, the ratio slightly decreased to 1.8 in 2024, suggesting that sales growth in that final year outpaced the corresponding increase in share price.

Overall, the data illustrates robust growth in both market valuation and sales metrics, with the share price and sales per share accelerating notably after 2021. The P/S ratio trends imply that investor sentiment and market valuation expanded more rapidly than sales initially, stabilizing somewhat in the latest period as sales gains became more pronounced.

Share Price

The share price exhibits a significant upward trajectory over the analyzed period. Starting at $2.27 on June 30, 2019, it increased steadily each year, with a notable acceleration beginning in 2022. The price rose from $6.93 in 2022 to $25.52 in 2023, and further to $45.54 by mid-2024, indicating strong market confidence and possibly reflecting improved financial performance or favorable market conditions.

Book Value Per Share (BVPS)

The book value per share shows consistent growth throughout the period. Beginning at $1.88 in 2019, it increased gradually to $2.72 by 2022. Thereafter, the growth rate accelerated markedly, reaching $3.73 in 2023 and then surging to $9.13 in 2024. This suggests enhanced equity value per share, likely driven by increased retained earnings or asset growth.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio reveals changing investor valuation relative to the book value. Initially, the ratio increased moderately from 1.21 in 2019 to 1.65 in 2021. A sharper increase is observed in 2022 and 2023, peaking at 6.85, indicating a growing premium of market price over book value, possibly due to investor expectations of future growth. However, by 2024, the ratio declined to 4.99, which may suggest a relative market correction or a catch-up in book value growth compared to the share price.