Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $6.71B
• Dividend Yield: N/A
• Average Volume (3M): 706.99K
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.27
• Revenue Growth: 7.40%
• EPS Growth: 13.79%
• Country: US
• Employees: 32,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.38
• Shares Outstanding: 54,604,890
• 10 Day Avg. Volume: 711,074
• 30 Day Avg. Volume: 706,994
• PEG Ratio: 1.83
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 13.29
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 9.87
• Enterprise Value/Ebitda: 16.18
• 1Y Price Target: $197.50
• Price Target Upside: 60.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.49
• Revenue Forecast (FY): $14.00B

• Rating: 66 Neutral
• Price Target: $137.00 ▲(11.51% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is driven primarily by solid financial performance (especially strong free cash flow) and a constructive earnings outlook tied to ZT Systems and AI/cloud demand. These positives are tempered by weak technicals (price below major moving averages with bearish momentum) and a high P/E with no dividend yield support.

Positive Factors

Strong free cash flow

Consistent, high free cash flow (TTM op cash ~$735M; FCF ~$518M) provides durable internal funding for capex, integration of acquisitions, buybacks, and debt service. Strong cash conversion (~70% of net income) improves resilience across cycles and reduces reliance on external financing.

Accretive acquisition and AI/cloud exposure

The ZT Systems acquisition is immediately accretive and materially expanded IMS (72% YoY), shifting mix toward cloud/AI and data‑center programs. This structurally increases TAM and recurring systems revenue, positioning Sanmina to capture multi‑year AI infrastructure demand and higher‑volume programs.

Manageable leverage and solid returns

A modest debt-to-equity (~0.30) and consistent ROE (~10–13%) indicate a conservative capital structure with proven return generation. This balance-sheet positioning supports further investment, capacity additions, and working‑capital funding while management targets investment‑grade metrics, providing durable strategic flexibility.

Negative Factors

Thin profitability margins

Margins remain thin for an EMS provider (TTM gross ~8.5%, net ~2.5%), leaving limited room to absorb material cost inflation, program start‑up expenses, or end‑market weakness. Sustained margin expansion is uncertain without persistent favorable mix, efficiency gains, or pricing power.

Elevated inventory and lower turns

A 74% YoY inventory increase to $2.2B and falling turns (5.3x) reflect integration of ZT Systems and build‑to‑stock for large programs. This raises working‑capital intensity and funding needs, increasing balance‑sheet sensitivity to demand timing and component obsolescence over the medium term.

Higher near-term capex and debt costs

Elevated capex (~$95M guidance) plus incremental other expense from new debt (~$26M expected) increase cash absorption and financing costs. Combined with planned working‑capital deployment, this reduces near‑term financial flexibility and raises execution risk if program ramp or demand softens.

Sanmina-Sci Business Overview & Revenue Model

Company Description

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. In addition, the company provides interconnect systems, such as printed circuit board fabrication, backplane, cable assemblies, and plastic injection moldings; mechanical systems comprising enclosures and precision machining; memory, storage platforms, radio frequency, optical, and microelectronic solutions; defense and aerospace products; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions industries. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

How the Company Makes Money

Sanmina makes money primarily by providing outsourced manufacturing and related lifecycle services to OEM customers and recognizing revenue from product shipments and services performed under customer contracts. Its core revenue streams typically include: (1) Electronics manufacturing and system integration—building printed circuit board assemblies and higher-level systems (box-build), integrating subsystems, and delivering finished or semi-finished products to customers; (2) Design, engineering, and manufacturing services—generating service revenue for activities such as product introduction support, test development, and process engineering tied to customers’ programs; (3) Supply chain and procurement services—earning manufacturing margins that reflect Sanmina’s ability to source components, manage inventories, and operate efficient production, with profitability influenced by material costs and availability; and (4) Aftermarket services—repair, refurbishment, and logistics/support services over a product’s lifecycle, which can provide recurring revenue depending on customer programs. The company’s earnings are driven by program scale and mix (complexity and margin profile by end market), manufacturing utilization and efficiency, component sourcing conditions, and customer concentration typical of EMS providers. Specific significant partnerships are not available (null).

Sanmina-Sci Financial Statement Overview

Summary

Strong recent cash generation (TTM operating cash flow ~$735M; free cash flow ~$518M) and solid TTM revenue growth (+14.6%) support the score. Offsetting factors are thin margins (TTM gross ~8.5%, net ~2.5%), choppy year-to-year revenue, and higher recent debt levels versus prior annual snapshots.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+14.6%), showing solid demand and scale. Profitability is steady but thin for the industry: TTM gross margin is ~8.5% and net margin is ~2.5%, with margins below the stronger levels seen in 2022–2023. Over the last few annual periods, revenue has been choppy (notably a decline in 2024), and profitability has not consistently expanded, which keeps the score from being higher despite the recent rebound.

Balance Sheet

Leverage looks manageable with TTM debt-to-equity at ~0.30, and returns on equity are consistently solid (about ~10–13% across periods, ~10.8% TTM). However, the capital structure appears to have shifted: TTM shows materially higher absolute debt versus prior annual periods, and the debt-to-equity ratio is higher than the 2022–2025 annual range shown. Overall, the balance sheet supports operations well, but the higher recent debt level warrants monitoring.

Cash Flow

Cash generation is a clear positive: TTM operating cash flow (~$735M) and free cash flow (~$518M) are strong, and free cash flow grew ~9.5% TTM. Cash conversion is healthy with free cash flow running at ~70% of net income TTM (and stronger in several annual periods), indicating earnings are generally backed by cash. The main weakness is historical volatility—free cash flow was very weak in 2023—so while the current run-rate is strong, consistency over cycles remains a risk.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	9.31B	8.13B	7.57B	8.94B	7.92B	6.74B
Gross Profit	789.62M	716.36M	640.43M	743.21M	622.21M	526.44M
EBITDA	481.55M	463.19M	469.14M	567.33M	433.58M	410.85M
Net Income	230.18M	245.89M	222.54M	309.97M	240.38M	249.55M
Balance Sheet
Total Assets	9.80B	5.86B	4.82B	4.87B	4.84B	4.21B
Cash, Cash Equivalents and Short-Term Investments	1.46B	966.22M	625.86M	667.57M	529.86M	650.03M
Total Debt	2.50B	394.24M	384.11M	421.28M	412.00M	386.13M
Total Liabilities	7.14B	3.32B	2.46B	2.56B	3.02B	2.33B
Stockholders Equity	2.47B	2.35B	2.20B	2.17B	1.82B	1.88B
Cash Flow
Free Cash Flow	518.34M	473.30M	228.99M	43.80M	192.22M	266.13M
Operating Cash Flow	735.45M	620.66M	340.22M	235.17M	330.85M	338.34M
Investing Cash Flow	-1.52B	-108.21M	-114.40M	-192.46M	-132.21M	-91.33M
Financing Cash Flow	1.61B	-173.84M	-269.71M	94.50M	-314.30M	-77.32M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SANM, the sentiment is Negative. The current price of 122.86 is below the 20-day moving average (MA) of 135.60, below the 50-day MA of 148.42, and below the 200-day MA of 131.58, indicating a bearish trend. The MACD of -7.04 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 55.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SANM.

Sanmina-Sci Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLXS	74 Outperform	$5.22B	24.74	12.39%	―	1.82%	56.52%
MKSI	69 Neutral	$15.27B	36.46	11.54%	0.54%	8.13%	780.20%
ST	68 Neutral	$4.84B	155.81	1.11%	1.43%	-8.07%	63.50%
TTMI	68 Neutral	$9.47B	41.17	10.61%	―	17.88%	91.41%
SANM	66 Neutral	$6.71B	42.40	9.86%	―	7.40%	13.79%
BHE	62 Neutral	$1.93B	61.39	2.25%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sanmina-Sci Corporate Events

Sanmina-Sci Shareholders Approve Expanded Equity Incentive Plan

On March 9, 2026, Sanmina-Sci stockholders approved an amendment to the company’s 2019 Equity Incentive Plan, adding 1.2 million shares of common stock for future awards to executives, employees, consultants and non-employee directors, with the plan set to run through December 3, 2028. At the same annual meeting, shareholders elected eight directors, ratified PricewaterhouseCoopers LLP as auditor for fiscal 2026, endorsed executive compensation on an advisory basis and decisively rejected a proposal to require separation of the chairman and CEO roles, signaling continued support for current governance and compensation structures.

The most recent analyst rating on (SANM) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.