Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $7.77B
• Dividend Yield: N/A
• Average Volume (3M): 908.86K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 1.20
• 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: 570,972
• 30 Day Avg. Volume: 908,857
• 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: 1.14
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 11.20
• Enterprise Value/Ebitda: 18.36
• 1Y Price Target: $197.50
• Price Target Upside: 38.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.49
• Revenue Forecast (FY): $14.00B

• Rating: 71 Outperform
• Price Target: $178.00 ▲(25.09% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 01/31/26

The score is driven primarily by solid underlying financials (especially strong free cash flow) and a constructive earnings outlook with accretive acquisition-driven growth. These positives are tempered by weak near-term technicals (below key moving averages with negative MACD) and a higher P/E multiple with no dividend yield provided.

Positive Factors

Strong cash generation and liquidity

Sanmina’s sustained operating and free cash flow (TTM OCF ~$735M, FCF ~$518M) and $1.42B cash plus ~$3.6B liquidity support durable self‑funding of capex, acquisitions, and shareholder returns. Strong cash generation reduces refinancing risk and enables multi‑year strategic investments.

Accretive ZT Systems acquisition and AI exposure

ZT Systems integration is immediately accretive to EPS and expands Sanmina’s footprint in AI/data‑center systems. This strengthens competitive positioning in a structurally growing market, improving scale, aftermarket sales, and the potential for a higher‑margin product mix versus purely commodity EMS revenue.

Diversified end markets with strong IMS growth

Significant IMS growth (+72% YoY to $2.79B) and concentration in cloud/communications (~62% of revenue combined) align Sanmina with secular AI/cloud infrastructure tailwinds. A diversified, higher‑growth end‑market mix supports more durable revenue streams and the potential to lift company margins over time.

Negative Factors

Thin profitability margins

TTM gross margin (~8.5%) and net margin (~2.5%) are thin for capital‑intensive EMS operations, limiting retained earnings available for reinvestment and return of capital. Persistent low margins increase sensitivity to commodity cost swings and program mix shifts, constraining durable margin expansion.

Elevated inventory and weaker turns

Inventory up ~74% YoY to $2.2B ties significant cash to working capital and reduced turns. Elevated inventory during integration increases funding needs, operational complexity and timing risk; until normalized, it can materially drag on free cash flow and raise leverage volatility over quarters.

Higher recent debt and elevated near‑term funding needs

Although current leverage appears manageable, absolute debt has risen materially versus prior periods and management expects leverage to increase to support working capital and growth. Higher debt plus elevated capex and other expenses raises refinancing and interest risks and can limit flexibility during downturns.

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 generates revenue primarily through its electronic manufacturing services (EMS) and integrated supply chain solutions. The company has multiple key revenue streams, which include contract manufacturing, where it produces products for its clients; design and engineering services, which help clients develop new products; and logistics and supply chain management services that optimize clients' operational efficiencies. Significant partnerships with major OEMs across various sectors, coupled with a focus on high-value markets such as medical devices and telecommunications, contribute to its earnings. Additionally, Sanmina benefits from long-term contracts with customers that provide stable revenue, and its ability to scale operations efficiently allows for competitive pricing and improved margins.

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. Offsets include thin profitability (TTM gross margin ~8.5%, net margin ~2.5%), choppy year-to-year revenue, and a higher recent debt profile 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: 142.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 142.3 is below the 20-day moving average (MA) of 149.91, below the 50-day MA of 155.34, and above the 200-day MA of 128.56, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 48.69 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	30.33	12.63%	―	1.82%	56.52%
SANM	71 Outperform	$7.77B	34.05	9.74%	―	7.40%	13.79%
MKSI	69 Neutral	$16.43B	56.10	11.74%	0.54%	8.13%	780.20%
ST	68 Neutral	$5.37B	174.81	1.10%	1.43%	-8.07%	63.50%
TTMI	68 Neutral	$11.68B	67.23	10.67%	―	17.88%	91.41%
BHE	66 Neutral	$2.08B	84.44	3.37%	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 Approves Fiscal 2026 Bonus Plan

On December 8, 2025, Sanmina-Sci‘s Compensation Committee approved the Fiscal Year 2026 Corporate Bonus Plan, which sets targets for revenue, non-GAAP operating margin, and cash flow from operations. The company’s performance against these targets will determine the incentive compensation for fiscal 2026, with executive officers’ bonuses ranging from 90% to 187.5% of their annual base salary. The Committee retains the discretion to amend the plan and adjust individual compensation.

The most recent analyst rating on (SANM) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.