Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $4.63B
• Dividend Yield: N/A
• Average Volume (3M): 395.02K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.41
• Revenue Growth: -1.50%
• EPS Growth: 1.84%
• Country: US
• Employees: 32,000
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.41
• Shares Outstanding: 53,463,806
• 10 Day Avg. Volume: 467,512
• 30 Day Avg. Volume: 395,019
• PEG Ratio: 3.07
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $95.00
• Price Target Upside: 9.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $93.00 ▲(7.38%Upside)

Sanmina-Sci is well-positioned with a strong financial foundation, robust revenue growth, and strategic acquisitions enhancing its market standing. While technical analysis shows short- to mid-term upward momentum, valuation remains balanced. The positive earnings call and strategic acquisition underscore a focus on growth and margin expansion, positioning the stock for solid performance despite some operational challenges.

Positive Factors

Acquisition Benefits

SANM's acquisition of ZT's manufacturing assets is expected to increase SANM’s scale and revenue from higher margin cloud/AI sectors.

Financial Performance

Sanmina reported a strong F2Q with revenue at the high end of guidance, and GM and EPS above guidance.

Share Buybacks

The board authorized a new $300 million share buyback.

Negative Factors

Macroeconomic Conditions

Ongoing weak macroeconomic conditions and the need for program ramps to materialize and get to scale present challenges.

Operating Environment

The operating environment remains tough, and weak end markets could lead to program pushouts.

Revenue Concerns

ZT is going through a transition period, with expected revenues from the acquired assets being lower than past figures.

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 by offering a broad range of electronic manufacturing services, including product design, engineering, prototyping, supply chain management, and final assembly. The company's revenue streams are diversified across various sectors, with significant contributions from communications networks, computing and storage, and other high-tech industries. Sanmina's business model relies on long-term contracts with major corporations, leveraging its global manufacturing footprint to provide cost-effective and scalable solutions. Additionally, strategic partnerships and its ability to adapt to the technological needs of its clients play a crucial role in sustaining and growing its revenue base.

Sanmina-Sci Financial Statement Overview

Summary

Sanmina-Sci presents a strong financial profile with impressive revenue growth and profitability, underpinned by a robust balance sheet with low leverage. The company's ability to generate solid cash flows further enhances its financial stability and growth potential. While the equity position is strong, there is room for improving return on equity to maximize shareholder value. Overall, the financial statements reflect a well-managed company with a positive outlook.

Income Statement

Sanmina-Sci demonstrates strong financial performance with consistent revenue growth, as indicated by a TTM revenue increase of 3.7% from the previous annual report. The company maintains a solid gross profit margin of 8.5% and a net profit margin of 3.1%, reflecting effective cost control and operational efficiency. The EBIT margin of 4.5% and EBITDA margin of 5.8% are competitive for the industry, showcasing profitability. Overall, the income statement highlights robust growth and profitability trends.

Balance Sheet

Sanmina-Sci has a strong equity position, with a debt-to-equity ratio of 0.07, indicating low leverage and financial stability. The return on equity (ROE) is 5.4%, showing moderate profitability relative to shareholder equity. The equity ratio of 89.9% suggests a solid financial foundation with substantial shareholder equity relative to total assets. The balance sheet reflects a strong financial structure with low risk from debt but potential for improved ROE.

Cash Flow

The company exhibits positive cash flow dynamics, with a healthy free cash flow growth rate of 17.7% over the previous annual period. The operating cash flow to net income ratio of 1.5 indicates strong cash generation from operations, while the free cash flow to net income ratio of 1.1 confirms efficient conversion of earnings into cash. Overall, cash flow statements show the company's ability to generate cash, supporting future growth and stability.

Breakdown
TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.85B	7.57B	8.94B	7.89B	6.76B	6.96B
	Gross Profit
668.98M	640.43M	743.21M	640.51M	551.80M	525.71M
	EBIT
353.98M	335.49M	455.66M	367.79M	281.30M	227.69M
	EBITDA
482.12M	469.14M	579.95M	463.08M	380.65M	366.75M
	Net Income Common Stockholders
242.19M	222.54M	309.97M	240.38M	249.55M	133.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
647.14M	625.86M	667.57M	529.86M	650.03M	480.53M
	Total Assets
4.97B	4.82B	4.87B	4.86B	4.21B	3.77B
	Total Debt
308.89M	317.32M	338.27M	346.74M	330.32M	348.00M
	Net Debt
-338.25M	-308.54M	-329.30M	-183.12M	-319.70M	-132.53M
	Total Liabilities
2.57B	2.46B	2.56B	3.00B	2.33B	2.14B
	Stockholders Equity
2.22B	2.20B	2.32B	1.86B	1.88B	1.63B
Cash Flow		Free Cash Flow
269.50M	228.99M	45.21M	200.64M	266.13M	236.15M
	Operating Cash Flow
362.67M	340.22M	235.17M	330.85M	338.34M	300.56M
	Investing Cash Flow
-62.17M	-114.40M	-192.46M	-132.21M	-91.33M	-64.41M
	Financing Cash Flow
-266.27M	-269.71M	94.50M	-314.30M	-77.32M	-210.28M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SANM, the sentiment is Positive. The current price of 86.61 is above the 20-day moving average (MA) of 81.77, above the 50-day MA of 78.43, and above the 200-day MA of 76.19, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 79.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SANM.

Sanmina-Sci Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$4.63B	20.04	11.03%	―	-1.50%	1.84%
PLXS	76 Outperform	$3.51B	25.19	10.93%	―	-0.69%	42.26%
OSIS	75 Outperform	$3.82B	27.70	16.73%	―	14.93%	12.89%
ESE	74 Outperform	$4.61B	39.09	9.66%	0.18%	8.40%	20.03%
MKSI	71 Outperform	$5.87B	26.06	9.50%	1.05%	-1.14%	―
CGNX	64 Neutral	$5.16B	44.93	8.02%	1.04%	8.56%	18.99%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%

Sanmina-Sci Corporate Events

Sanmina-Sci Acquires ZT Systems’ Infrastructure Business

On May 18, 2025, Sanmina Corporation announced a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD for $2.55 billion in cash and equity, with an additional $450 million contingent on future performance. This strategic acquisition is expected to enhance Sanmina’s position in the fast-growing Cloud and AI infrastructure market, doubling its revenue scale in three years and being accretive to non-GAAP EPS in the first year post-close. The acquisition will also strengthen Sanmina’s relationships with hyperscaler customers and expand its manufacturing capabilities in the U.S. and Europe, positioning it as a leading end-to-end manufacturing partner for mission-critical technologies.

The most recent analyst rating on (SANM) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.

Sanmina-Sci Appoints Michael Loparco to Board

On March 10, 2025, Sanmina Corporation appointed Michael J. Loparco to its Board of Directors. Loparco, with over 25 years of experience in global manufacturing and leadership roles at Symbotic Inc. and Jabil Inc., is expected to bring valuable insights to Sanmina’s operations. Additionally, the company’s stockholders approved an amendment to the 2019 Equity Incentive Plan to reserve an additional 1,000,000 shares of Common Stock, which aims to enhance the company’s incentive structures for eligible individuals.