Sanmina (NasdaqGS:SANM) - Share price, News & Analysis

SANM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

SANM Stock Overview

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

Rewards

Trading at 73.8% below our estimate of its fair value

Earnings grew by 49.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 5.2% per year for the next 3 years

Significant insider selling over the past 3 months

Sanmina Competitors

TE Connectivity

NYSE:TEL

US$39.9b

Plexus

NasdaqGS:PLXS

US$2.3b

Benchmark Electronics

NYSE:BHE

US$845.3m

Kimball Electronics

NasdaqGS:KE

US$434.9m

Price History & Performance

Summary of all time highs, changes and price drops for Sanmina
Historical stock prices
Current Share Price	US$40.71
52 Week High	US$44.26
52 Week Low	US$35.06
Beta	0.98
1 Month Change	3.85%
3 Month Change	1.09%
1 Year Change	-3.67%
3 Year Change	38.19%
5 Year Change	10.63%
Change since IPO	909.83%

Recent News & Updates

Apr 29

Is Sanmina (NASDAQ:SANM) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Apr 11

Is It Too Late To Consider Buying Sanmina Corporation (NASDAQ:SANM)?

Sanmina Corporation ( NASDAQ:SANM ), is not the largest company out there, but it saw significant share price movement...

Mar 16

Sanmina (NASDAQ:SANM) Shareholders Will Want The ROCE Trajectory To Continue

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Feb 21

With EPS Growth And More, Sanmina (NASDAQ:SANM) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	SANM	US Electronic	US Market
7D	0.6%	0.7%	0.7%
1Y	-3.7%	-13.4%	-10.8%

Return vs Industry: SANM exceeded the US Electronic industry which returned -12.3% over the past year.

Return vs Market: SANM exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is SANM's price volatile compared to industry and market?
SANM volatility
SANM Average Weekly Movement	4.2%
Electronic Industry Average Movement	7.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SANM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SANM's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	32,000	Jure Sola	https://www.sanmina.com

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems.

Sanmina Fundamentals Summary

How do Sanmina's earnings and revenue compare to its market cap?
SANM fundamental statistics
Market Cap	US$2.46b
Earnings (TTM)	US$285.79m
Revenue (TTM)	US$6.97b

8.7x

P/E Ratio

0.4x

P/S Ratio

Is SANM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SANM income statement (TTM)
Revenue	US$6.97b
Cost of Revenue	US$6.41b
Gross Profit	US$564.41m
Other Expenses	US$278.61m
Earnings	US$285.79m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.70
Gross Margin	8.10%
Net Profit Margin	4.10%
Debt/Equity Ratio	17.5%

How did SANM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SANM ($40.71) is trading below our estimate of fair value ($155.51)

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 (8.7x) compared to the US Electronic industry average (15.4x).

PE vs Market: SANM is good value based on its PE Ratio (8.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: SANM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: SANM is good value based on its PB Ratio (1.3x) compared to the US Electronic industry average (1.8x).

Future Growth

How is Sanmina forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-5.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SANM's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: SANM's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: SANM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SANM's revenue (6.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: SANM's revenue (6.2% per year) is forecast to grow slower than 20% 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

Past Performance

How has Sanmina performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SANM has high quality earnings.

Growing Profit Margin: SANM's current net profit margins (4.1%) are higher than last year (2.7%).

Past Earnings Growth Analysis

Earnings Trend: SANM's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: SANM's earnings growth over the past year (49.6%) exceeds its 5-year average (27.8% per year).

Earnings vs Industry: SANM earnings growth over the past year (49.6%) exceeded the Electronic industry 37.6%.

Return on Equity

High ROE: SANM's Return on Equity (15.5%) is considered low.

Financial Health

How is Sanmina's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SANM's short term assets ($3.7B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: SANM's short term assets ($3.7B) exceed its long term liabilities ($544.2M).

Debt to Equity History and Analysis

Debt Level: SANM has more cash than its total debt.

Reducing Debt: SANM's debt to equity ratio has reduced from 23.1% to 17.5% over the past 5 years.

Debt Coverage: SANM's debt is well covered by operating cash flow (106.6%).

Interest Coverage: SANM's interest payments on its debt are well covered by EBIT (16.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SANM has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

9.6yrs

Average management tenure

CEO

Jure Sola (70 yo)

42.33yrs

Tenure

US$14,535,131

Compensation

Mr. Jure Sola Co-Founded Sanmina Corporation in 1980 and has been its Executive Chairman since October 2, 2017. He serves as Chief Executive Officer at Sanmina Corporation since August 17, 2020. Mr. Sola s...

CEO Compensation Analysis

Compensation vs Market: Jure's total compensation ($USD14.54M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Jure's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SANM's management team is seasoned and experienced (9.6 years average tenure).

Board Members

Experienced Board: SANM's board of directors are seasoned and experienced ( 11.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/04/02
Annual Earnings	2021/10/02