Sanmina-sci (SANM)
NASDAQ:SANM
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Sanmina-Sci
(NASDAQ:SANM)
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Rating:72Outperform
Price Target:
$268.00
▲(53.94% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by strong earnings-call outlook (high growth and improved profitability guidance) and solid financial execution (notably strong cash generation), supported by a strong price uptrend. Offsetting these positives are elevated valuation (high P/E) and balance-sheet risk from the sharp increase in leverage, alongside near-term technical overbought signals.
Positive Factors
Cash Generation
Sustained, strong operating and free cash flow provides durable internal funding for capex, M&A integration, and buybacks. High cash conversion (free cash flow ~70% of net income TTM) supports reinvestment and debt service capacity, improving strategic optionality over months.
Negative Factors
Higher Leverage
A sharp step‑up in leverage materially reduces financial flexibility and raises refinancing and covenant risk if execution falters. With elevated debt, the firm has less buffer for margin or timing shocks, making near‑term deleveraging or continued cash generation critical to sustain credit optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained, strong operating and free cash flow provides durable internal funding for capex, M&A integration, and buybacks. High cash conversion (free cash flow ~70% of net income TTM) supports reinvestment and debt service capacity, improving strategic optionality over months.
Read all positive factors
Sanmina-Sci Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales by Sanmina’s business lines, showing which product or service areas drive growth and which are second‑order. Segment-level trends point to shifts toward higher‑margin offerings, dependence on a few large customers, and where operational investments are paying off or may be needed.
Breaks down sales by Sanmina’s business lines, showing which product or service areas drive growth and which are second‑order. Segment-level trends point to shifts toward higher‑margin offerings, dependence on a few large customers, and where operational investments are paying off or may be needed.
Data provided by:
The Fly
The FlySanmina-Sci (SANM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.94B
Dividend YieldN/A
Average Volume (3M)1.14M
Price to Earnings (P/E)50.5
Beta (1Y)1.41
Revenue Growth44.48%
EPS Growth8.59%
CountryUS
Employees32,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.81
Shares Outstanding53,597,736
10 Day Avg. Volume1,681,272
30 Day Avg. Volume1,140,988
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)2.67
Price to Sales (P/S)0.77
P/FCF Ratio13.29
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit14.07
Enterprise Value/Ebitda23.86
Forecast
1Y Price Target
$221.25Price Target Upside27.09% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)10.02
Revenue Forecast (FY)$13.77B
Sanmina-Sci Business Overview & Revenue Model
Company Description
Sanmina Corporation delivers comprehensive manufacturing services, encompassing components, finished goods, repair, supply chain management, and post-sale support on a global scale. Its operations are structured into two principal divisions: Integ...
How the Company Makes Money
Sanmina primarily makes money by providing outsourced manufacturing and related services to OEM customers and recognizing revenue from the sale of manufactured products (and associated services) delivered under customer programs. Key revenue strea...
Sanmina-Sci Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational and financial performance for Q2 FY26: very large revenue growth (driven by the ZT Systems acquisition), substantial EPS upside, robust cash generation and an improved ROIC and liquidity position. Management provided forward guidance that reflects continued high growth and reiterated confidence in achieving $16B+ in FY27. Negative items discussed (CPS margin compression, inventory build, component shortages and timing uncertainty due to shipment pull‑forwards) are meaningful but appear manageable and largely transitory relative to the material upside from ZT integration, organic core growth, and cash generation.Positive Updates
Record Quarterly Revenue and Strong YoY Growth
Revenue of $4.01 billion for Q2 FY26, up ~102% versus the prior year period, driven by strong contribution from the ZT Systems acquisition and growth across Core Sanmina end markets.
Negative Updates
CPS Margin Pressure
CPS non‑GAAP gross margin declined to 11.6%, down 230 basis points year‑over‑year, primarily due to depreciation and investments to support new programs and expected timing issues that impacted near‑term profitability.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong YoY Growth
Revenue of $4.01 billion for Q2 FY26, up ~102% versus the prior year period, driven by strong contribution from the ZT Systems acquisition and growth across Core Sanmina end markets.
Read all positive updates
Company Guidance
The company guided Q3 revenue of $3.2 billion to $3.5 billion (core Sanmina $2.2B–$2.3B; ZT Systems $1.0B–$1.2B) — a $3.35B midpoint implying ~64% YoY growth — with non‑GAAP operating margin of 6.4%–6.9%, other income/expense a net ~$30M charge, a non‑GAAP effective tax rate of 21%–23%, and an estimated $5M noncash reduction for India JV partners; it expects non‑GAAP diluted EPS of $2.55–$2.85 on ~55M shares (midpoint $2.70, ~77% YoY increase), depreciation of ~ $50M and CapEx of ~$95M. For fiscal 2026 the company reiterated revenue guidance of $13.7B–$14.3B (core Sanmina high‑single‑digit growth; ZT Systems on track to the $5B–$6B annualized range), non‑GAAP operating margin of 6.3%–6.6%, and non‑GAAP diluted EPS of $10.75–$11.35 on ~55M shares, while signaling a long‑term net leverage target of 1.0x–2.0x and confidence in achieving $16B+ revenue in fiscal 2027.Sanmina-Sci Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.34B | 8.13B | 7.57B | 8.94B | 7.92B | 6.74B |
| Gross Profit | 967.17M | 716.36M | 640.43M | 743.21M | 622.21M | 526.44M |
| EBITDA | 570.32M | 463.19M | 469.14M | 567.33M | 433.58M | 410.85M |
| Net Income | 259.61M | 245.89M | 222.54M | 309.97M | 240.38M | 249.55M |
Balance Sheet | ||||||
| Total Assets | 9.67B | 5.86B | 4.82B | 4.87B | 4.84B | 4.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.58B | 966.22M | 625.86M | 667.57M | 529.86M | 650.03M |
| Total Debt | 2.17B | 394.24M | 384.11M | 421.28M | 412.00M | 386.13M |
| Total Liabilities | 7.06B | 3.32B | 2.46B | 2.56B | 3.02B | 2.33B |
| Stockholders Equity | 2.42B | 2.35B | 2.20B | 2.17B | 1.82B | 1.88B |
Cash Flow | ||||||
| Free Cash Flow | 734.23M | 473.30M | 228.99M | 43.80M | 192.22M | 266.13M |
| Operating Cash Flow | 977.35M | 620.66M | 340.22M | 235.17M | 330.85M | 338.34M |
| Investing Cash Flow | -1.59B | -108.21M | -114.40M | -192.46M | -132.21M | -91.33M |
| Financing Cash Flow | 1.55B | -173.84M | -269.71M | 94.50M | -314.30M | -77.32M |
Sanmina-Sci Technical Analysis
Neutral
174.09
Price Trends
223.83
Positive
181.49
Positive
163.04
Positive
Market Momentum
5.45
Positive
48.97
Neutral
32.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SANM, the sentiment is Neutral. The current price of 174.09 is below the 20-day moving average (MA) of 255.23, below the 50-day MA of 223.83, and above the 200-day MA of 163.04, indicating a neutral trend. The MACD of 5.45 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 32.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SANM.
Sanmina-Sci Risk Analysis
Sanmina-Sci disclosed 28 risk factors in its most recent earnings report. Sanmina-Sci reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sanmina-Sci Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $12.94B | 50.46 | 10.88% | ― | 44.48% | 8.59% | |
71 Outperform | $8.03B | 42.81 | 12.83% | ― | 8.64% | 32.91% | |
69 Neutral | $27.45B | 83.76 | 12.24% | 0.54% | 11.44% | 44.67% | |
64 Neutral | $3.31B | 96.30 | 3.10% | 1.44% | 3.53% | -34.92% | |
64 Neutral | $22.48B | 115.10 | 11.26% | ― | 23.10% | 146.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $7.36B | 152.17 | 1.72% | 1.43% | -3.37% | -59.55% |
* Technology Sector Average
SANM
Sanmina-Sci
241.49
149.78
163.32%
BHE
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92.17
55.13
148.87%
MKSI
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PLXS
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124.35%
ST
Sensata
50.63
22.40
79.35%
TTMI
TTM Technologies
216.44
179.49
485.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.