Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $8.34B
• Dividend Yield: N/A
• Average Volume (3M): 693.57K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.29
• 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: 54,563,890
• 10 Day Avg. Volume: 843,337
• 30 Day Avg. Volume: 693,565
• PEG Ratio: 1.83
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 13.16
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 8.15
• Enterprise Value/Ebitda: 12.19
• 1Y Price Target: $180.00
• Price Target Upside: 16.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.49
• Revenue Forecast (FY): $8.68B

• Rating: 79 Outperform
• Price Target: $184.00 ▲(19.35% Upside)

Sanmina's overall stock score is driven by its strong financial performance and strategic acquisitions, which enhance its market position. While the stock's valuation is relatively high, the positive technical indicators and robust earnings call support a favorable outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Strength

Robust cash flow generation enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Strategic Acquisition

This acquisition strengthens Sanmina's position in high-growth markets, enhancing its competitive edge and future revenue potential.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, potentially impacting long-term financial performance.

Automotive Market Softness

Weakness in key markets may hinder revenue growth and require strategic adjustments to mitigate impact on overall performance.

Higher Foreign Currency Expenses

Foreign currency fluctuations can unpredictably affect financial results, posing a risk to consistent earnings and cash flow.

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

Sanmina-Sci exhibits strong financial performance with significant revenue growth and improved cash flow metrics. The company maintains a conservative leverage approach, enhancing its financial stability. While operational efficiency metrics show slight pressure, the overall financial health remains robust.

Income Statement

Sanmina-Sci shows strong revenue growth with a 34.76% increase in the latest year, indicating robust demand and market expansion. The gross profit margin improved slightly to 8.81%, and the net profit margin is stable at 3.03%, reflecting efficient cost management. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.12, indicating a conservative leverage approach and reduced financial risk. Return on equity is solid at 9.68%, showcasing effective use of equity capital. The equity ratio stands at 43.33%, demonstrating a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Sanmina-Sci's free cash flow growth is impressive at 42.03%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.22, indicating healthy cash conversion. The free cash flow to net income ratio of 0.77 suggests efficient cash utilization for reinvestment and shareholder returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.13B	8.13B	7.57B	8.94B	7.92B	6.74B
Gross Profit	716.36M	716.36M	640.43M	743.21M	622.21M	526.44M
EBITDA	478.84M	463.19M	469.14M	567.33M	433.58M	410.85M
Net Income	245.89M	245.89M	222.54M	309.97M	240.38M	249.55M
Balance Sheet
Total Assets	5.86B	5.86B	4.82B	4.87B	4.84B	4.21B
Cash, Cash Equivalents and Short-Term Investments	926.27M	926.27M	625.86M	667.57M	529.86M	650.03M
Total Debt	300.47M	300.47M	384.11M	421.28M	412.00M	386.13M
Total Liabilities	3.32B	3.32B	2.46B	2.56B	3.02B	2.33B
Stockholders Equity	2.35B	2.35B	2.20B	2.17B	1.82B	1.88B
Cash Flow
Free Cash Flow	478.18M	478.18M	228.99M	43.80M	192.22M	266.13M
Operating Cash Flow	620.66M	620.66M	340.22M	235.17M	330.85M	338.34M
Investing Cash Flow	-108.21M	-108.21M	-114.40M	-192.46M	-132.21M	-91.33M
Financing Cash Flow	-173.84M	-173.84M	-269.71M	94.50M	-314.30M	-77.32M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 154.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 154.17 is below the 20-day moving average (MA) of 156.58, above the 50-day MA of 151.14, and above the 200-day MA of 110.78, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 32.93 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	$8.34B	34.60	10.81%	―	7.40%	13.79%
TTMI	77 Outperform	$7.33B	57.06	8.12%	―	17.88%	91.41%
PLXS	75 Outperform	$4.11B	24.54	12.44%	―	1.82%	56.52%
MKSI	75 Outperform	$10.88B	39.62	11.12%	0.54%	8.13%	780.20%
BHE	72 Outperform	$1.59B	43.67	3.37%	1.44%	-2.93%	-40.33%
ST	63 Neutral	$4.95B	-175.95	-0.92%	1.41%	-8.07%	63.50%
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.

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.

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.