Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $9.29B
• Dividend Yield: N/A
• Average Volume (3M): 905.07K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.22
• Revenue Growth: 7.40%
• EPS Growth: 13.79%
• Country: US
• Employees: 32,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.67
• Shares Outstanding: 53,284,450
• 10 Day Avg. Volume: 866,241
• 30 Day Avg. Volume: 905,071
• PEG Ratio: -0.67
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 16.62
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 15.19
• 1Y Price Target: $160.00
• Price Target Upside: -5.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 6.92
• Revenue Forecast (FY): $8.68B

• Rating: 78 Outperform
• Price Target: $160.00 ▼(-5.42% Downside)

Sanmina-Sci's strong financial performance and positive earnings call are the most significant factors driving the score, reflecting robust growth and strategic positioning. Technical analysis supports a bullish trend, though valuation concerns and market challenges present some risks.

Positive Factors

Strategic Acquisition

The acquisition of ZT Systems enhances Sanmina's position in the growing cloud and AI markets, providing long-term growth opportunities and strengthening its competitive edge.

Cash Flow Generation

Robust cash flow generation supports Sanmina's financial stability and ability to invest in growth initiatives, ensuring long-term sustainability and operational flexibility.

Revenue Growth

Consistent revenue growth reflects Sanmina's strong market position and ability to capitalize on industry demand, supporting sustained business expansion.

Negative Factors

Automotive Market Challenges

Challenges in the automotive sector could impact Sanmina's revenue from this segment, potentially affecting overall growth and necessitating strategic adjustments.

Increased Operating Expenses

Higher operating expenses may pressure margins and reduce profitability, requiring careful cost management to maintain financial performance.

Foreign Currency Expenses

Foreign currency fluctuations can lead to unexpected expenses, impacting net income and highlighting the need for effective currency risk management.

Sanmina-Sci Business Overview & Revenue Model

Company Description

Sanmina-SCI (SANM) is a leading integrated manufacturing solutions company that provides a comprehensive range of services to various sectors, including telecommunications, computing, storage, medical technology, and industrial applications. The company specializes in offering end-to-end solutions, including design, manufacturing, logistics, and repair services for electronic products and components. With a global presence, Sanmina leverages its engineering expertise and state-of-the-art facilities to deliver high-quality and cost-effective solutions tailored to meet the specific needs of its clients.

How the Company Makes Money

Sanmina generates revenue primarily through its manufacturing services, which include printed circuit board assembly, system integration, and supply chain management. The company operates on a contract manufacturing model, where it partners with original equipment manufacturers (OEMs) to produce their electronic products. Key revenue streams include the sale of manufacturing services, logistics and supply chain solutions, and value-added services such as engineering and design support. Sanmina benefits from long-term contracts with major clients in various industries, which provides a stable revenue base. Additionally, the company has strategic partnerships with technology leaders that enhance its market position and contribute to its earnings through collaborative projects and innovations.

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.

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	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	6.03B	7.57B	8.94B	8.23B	7.11B	6.87B
Gross Profit	525.20M	640.43M	743.21M	591.94M	463.78M	519.91M
EBITDA	370.87M	469.14M	567.33M	416.82M	298.02M	346.56M
Net Income	197.83M	222.54M	309.97M	141.51M	-95.53M	138.83M
Balance Sheet
Total Assets	5.22B	4.82B	4.87B	3.91B	4.09B	3.85B
Cash, Cash Equivalents and Short-Term Investments	837.72M	625.86M	667.57M	454.74M	419.53M	406.66M
Total Debt	363.99M	384.11M	421.28M	385.32M	607.67M	479.86M
Total Liabilities	2.75B	2.46B	2.56B	2.26B	2.61B	2.20B
Stockholders Equity	2.29B	2.20B	2.17B	1.64B	1.47B	1.65B
Cash Flow
Free Cash Flow	336.69M	228.99M	43.80M	248.29M	37.54M	139.13M
Operating Cash Flow	421.58M	340.22M	235.17M	382.96M	156.42M	250.96M
Investing Cash Flow	-45.56M	-114.40M	-192.46M	-127.64M	-116.18M	-107.90M
Financing Cash Flow	-165.62M	-269.71M	94.50M	-220.22M	-28.34M	-135.49M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 169.17 is above the 20-day moving average (MA) of 146.84, above the 50-day MA of 131.00, and above the 200-day MA of 100.74, indicating a bullish trend. The MACD of 12.57 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, 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	78 Outperform	$9.29B	37.93	10.38%	―	7.40%	13.79%
PLXS	75 Outperform	$3.94B	22.96	12.44%	―	1.82%	56.52%
MKSI	74 Outperform	$10.67B	38.64	11.12%	0.64%	8.13%	780.20%
TTMI	71 Outperform	$7.22B	54.09	8.12%	―	17.88%	91.41%
BHE	69 Neutral	$1.54B	41.01	3.37%	1.51%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	61 Neutral	$4.55B	―	-0.92%	1.53%	-8.07%	63.50%

Sanmina-Sci Corporate Events

Sanmina Corporation Reports Strong Fiscal 2025 Results

Sanmina Corporation, a Fortune 500 company, is a leading provider of integrated manufacturing solutions, primarily serving the global Electronics Manufacturing Services market, with a focus on sectors such as industrial, medical, defense, aerospace, automotive, communications networks, and cloud and AI infrastructure.

Sanmina-Sci Completes Acquisition of ZT Group Int’l

On October 27, 2025, Sanmina Corporation completed the acquisition of ZT Group Int’l, Inc. from AMD Design, LLC for a total consideration of $2.4 billion in cash and $150 million in Sanmina common stock. This strategic acquisition aims to enhance Sanmina’s capabilities in AI and compute infrastructure for hyperscale computing companies. To finance this acquisition, Sanmina entered into a senior secured credit agreement, which included a $1.5 billion revolving credit facility and a $2.0 billion term loan, and amended it to facilitate the transaction. The acquisition is expected to impact Sanmina’s operations by expanding its market reach and technological capabilities, although it also introduces potential risks related to integration and financial commitments.

The most recent analyst rating on (SANM) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.

Sanmina Completes Acquisition of ZT Systems Business

On October 27, 2025, Sanmina Corporation announced the completion of its acquisition of ZT Systems’ data center infrastructure manufacturing business from AMD. This acquisition positions Sanmina as a leader in the Cloud and AI end-market, enhancing its scale and capabilities. The strategic partnership with AMD will accelerate the deployment of AMD’s cloud and AI solutions, reinforcing Sanmina’s role as a trusted partner in mission-critical digital infrastructure globally. The acquisition expands Sanmina’s manufacturing capacity and customer relationships, particularly with hyperscalers, and strengthens its ability to support a broad customer base in the Cloud and AI sectors.

The most recent analyst rating on (SANM) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.