NasdaqGS:SANM

Stock Analysis Report

Executive Summary

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Sanmina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SANM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

SANM

-0.4%

US Electronic

0.7%

US Market


1 Year Return

24.6%

SANM

18.0%

US Electronic

12.9%

US Market

Return vs Industry: SANM exceeded the US Electronic industry which returned 18% over the past year.

Return vs Market: SANM exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

SANMIndustryMarket
7 Day1.1%-0.4%0.7%
30 Day4.6%4.8%4.4%
90 Day8.6%14.5%7.0%
1 Year24.6%24.6%19.3%18.0%15.4%12.9%
3 Year3.2%3.2%51.4%47.2%49.1%39.5%
5 Year32.3%32.3%81.6%72.7%62.7%44.7%

Price Volatility Vs. Market

How volatile is Sanmina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sanmina undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SANM ($32.62) is trading below our estimate of fair value ($95.86)

Significantly Below Fair Value: SANM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SANM is good value based on its PE Ratio (15.9x) compared to the Electronic industry average (20.8x).

PE vs Market: SANM is good value based on its PE Ratio (15.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SANM is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SANM is good value based on its PB Ratio (1.4x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Sanmina forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SANM's forecast earnings growth (10.5% per year) is above the savings rate (2.7%).

Earnings vs Market: SANM's earnings (10.5% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: SANM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SANM's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: SANM's revenue is forecast to decline over the next 3 years (-3.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SANM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sanmina performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SANM has high quality earnings.

Growing Profit Margin: SANM's current net profit margins (1.7%) are higher than last year (-1.3%).


Past Earnings Growth Analysis

Earnings Trend: SANM's earnings have declined by -29.4% per year over the past 5 years.

Accelerating Growth: SANM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SANM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (56.3%).


Return on Equity

High ROE: SANM's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sanmina's financial position?


Financial Position Analysis

Short Term Liabilities: SANM's short term assets ($2.9B) exceeds its short term liabilities ($1.7B)

Long Term Liabilities: SANM's short term assets (2.9B) exceeds its long term liabilities (579.9M)


Debt to Equity History and Analysis

Debt Level: SANM's debt to equity ratio (24.7%) is considered satisfactory

Reducing Debt: SANM's debt to equity ratio has reduced from 43.5% to 24.7% over the past 5 years.

Debt Coverage: SANM's debt is well covered by operating cash flow (94.5%).

Interest Coverage: SANM's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

Inventory Level: SANM has a high level of physical assets or inventory.

Debt Coverage by Assets: SANM's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is Sanmina's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SANM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SANM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SANM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SANM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SANM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Sanmina's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Hartmut Liebel (56yo)

0.2yrs

Tenure

0

Mr. Hartmut Liebel serves as Chief Executive Officer at Sanmina Corporation since September 30, 2019 and also serves as Director. Mr. Liebel served as the President and Chief Operating Officer at Sanmina C ...


Management Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: SANM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

8.9yrs

Average Tenure

64yo

Average Age

Experienced Board: SANM's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: SANM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$381,83313 Nov 19
John Goldsberry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,850
Max PriceUS$32.33
SellUS$411,61513 Nov 19
Rita Lane
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,952
Max PriceUS$31.78
SellUS$28,04609 Aug 19
Brent Billinger
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares931
Max PriceUS$30.12
SellUS$86,82520 May 19
Brent Billinger
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares2,762
Max PriceUS$31.44
SellUS$49,18225 Feb 19
Brent Billinger
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares1,500
Max PriceUS$32.79
SellUS$196,18522 Feb 19
Alan Reid
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Global Human Resources
Shares6,052
Max PriceUS$32.46
SellUS$529,70022 Feb 19
John Goldsberry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,407
Max PriceUS$32.45
SellUS$379,81921 Nov 18
David Anderson
EntityIndividual
Role
Senior Key Executive
Shares14,595
Max PriceUS$26.02

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jure Sola (68yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.9yrs
    • Compensation: US$8.93m
  • Hartmut Liebel (56yo)

    CEO & Director

    • Tenure: 0.2yrs
  • Michael Clarke (64yo)

    • Tenure: 0.2yrs
    • Compensation: US$313.35k
  • Kurt Adzema (50yo)

    Executive VP & CFO

    • Tenure: 0.08yrs
  • Gerry Fay (60yo)

    Consultant

    • Tenure: 1.2yrs
    • Compensation: US$770.79k
  • Paige Melching

    Vice President of Investor Relations

    • Tenure: 22.8yrs
  • Alan Reid (56yo)

    Executive Vice President of Global Human Resources

    • Tenure: 7.1yrs
    • Compensation: US$691.14k
  • Dave Anderson (58yo)

    • Tenure: 0yrs
    • Compensation: US$2.00m
  • Christopher Sadeghian

    VP of Legal

    • Tenure: 0yrs
  • Brent Billinger (55yo)

    Principal Accounting Officer

    • Tenure: 1.9yrs

Board Members

  • Krish Prabhu (64yo)

    Director

    • Tenure: 0.2yrs
  • Jure Sola (68yo)

    Co-Founder & Executive Chairman

    • Tenure: 16.9yrs
    • Compensation: US$8.93m
  • Hartmut Liebel (56yo)

    CEO & Director

    • Tenure: 0.2yrs
  • John Goldsberry (64yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$346.69k
  • Mario Rosati (73yo)

    Director

    • Tenure: 22.8yrs
    • Compensation: US$260.01k
  • Jackie Ward (81yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$547.47k
  • Gene Delaney (62yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$654.68k
  • Joe Licata (59yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$285.01k
  • Rita Lane (57yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$320.01k

Company Information

Sanmina Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanmina Corporation
  • Ticker: SANM
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$2.283b
  • Shares outstanding: 69.98m
  • Website: https://www.sanmina.com

Number of Employees


Location

  • Sanmina Corporation
  • 2700 North First Street
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SANMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1993
SAYNDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1993

Biography

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two segments, Integrated Manufacturing Solut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:40
End of Day Share Price2019/11/15 00:00
Earnings2019/09/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.