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Sanmina-Sci
(NASDAQ:SANM)
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Rating:63Neutral
Price Target:
$212.00
▲(1.71% Upside)
Action:Reiterated
Date:07/28/26
The score is anchored by solid operating performance and cash generation, but is held back by the sharp increase in leverage and thin net margins. Earnings-call guidance and execution/integration momentum are strong positives, while technicals are mixed (weak near-term vs supportive longer-term trend) and valuation is a notable headwind given the high P/E and no dividend yield provided.
Positive Factors
Robust revenue growth and AI/cloud demand
Sanmina's outsized top-line growth is anchored in structural demand from AI data centers and cloud infrastructure, with IMS and communications markets ramping materially. Strong bookings and a diversified OEM footprint provide multi-quarter visibility into program ramps that sustain revenue growth beyond transitory cycles.
Negative Factors
Sharply increased leverage
Leverage has moved materially higher, reducing financial flexibility and increasing interest and refinancing risk if conditions tighten. Elevated debt levels constrain the company's ability to pursue opportunistic investments or absorb program timing shocks, making capital allocation decisions more sensitive over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust revenue growth and AI/cloud demand
Sanmina's outsized top-line growth is anchored in structural demand from AI data centers and cloud infrastructure, with IMS and communications markets ramping materially. Strong bookings and a diversified OEM footprint provide multi-quarter visibility into program ramps that sustain revenue growth beyond transitory cycles.
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.
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The Fly
The FlySanmina-Sci (SANM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.87B
Dividend YieldN/A
Average Volume (3M)1.27M
Price to Earnings (P/E)34.9
Beta (1Y)1.36
Revenue Growth58.56%
EPS Growth19.37%
CountryUS
Employees35,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)5.70
Shares Outstanding53,597,355
10 Day Avg. Volume661,046
30 Day Avg. Volume1,274,292
Financial Highlights & Ratios
PEG Ratio1.79
Price to Book (P/B)2.67
Price to Sales (P/S)0.77
P/FCF Ratio13.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$270.00Price Target Upside29.54% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)11.16
Revenue Forecast (FY)$14.12B
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:Jul 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and very robust growth: revenue and EPS significantly outperformed prior-year levels, margins expanded materially, ZT Systems integration is progressing with program wins, and the company retains a strong balance sheet and liquidity. Near-term headwinds include a pronounced inventory and working capital build, limited free cash flow this quarter, CPS margin pressure from investment-related depreciation, and some timing variability in ZT legacy programs that delays contributions from next-generation accelerated compute until Q1 FY2027. Overall, the positive growth, margin expansion, successful integration progress and confident guidance outweigh the near-term cash and timing challenges.Positive Updates
Strong Quarterly Revenue and Year-over-Year Growth
Sanmina reported non-GAAP revenue of $3.46 billion for Q3 FY2026, up 69.7% year-over-year. Core Sanmina revenue grew 17% YoY to $2.4 billion and ZT Systems contributed ~$1.1 billion. IMS revenue totaled $2.96 billion, up 79.4% YoY. The communications networks, cloud & AI infrastructure end market was $2.148 billion (62% of revenue), up 173.2% YoY.
Negative Updates
Working Capital and Inventory Build
Inventory (net of customer advances) rose to $2.2 billion, up 87.2% YoY, driven in part by the ZT Systems acquisition and investments to support new programs. Inventory turns fell to 5.6x from 6.3x a year ago. Management expects working capital to build further as programs ramp, which will pressure operating cash flow in the near term.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Revenue and Year-over-Year Growth
Sanmina reported non-GAAP revenue of $3.46 billion for Q3 FY2026, up 69.7% year-over-year. Core Sanmina revenue grew 17% YoY to $2.4 billion and ZT Systems contributed ~$1.1 billion. IMS revenue totaled $2.96 billion, up 79.4% YoY. The communications networks, cloud & AI infrastructure end market was $2.148 billion (62% of revenue), up 173.2% YoY.
Read all positive updates
Company Guidance
Sanmina guided Q4 revenue of $3.3–$3.6 billion (Core Sanmina roughly $2.5–$2.6 billion and ZT Systems $0.8–$1.0 billion), with a midpoint of $3.45 billion (about 64.6% year‑over‑year growth); non‑GAAP operating margin of 7.5%–8.0%; other income/expense of ~($30) million; a non‑GAAP effective tax rate of 21%–23%; an approximate $6 million non‑cash reduction for India JV partners; non‑GAAP diluted EPS of $3.05–$3.35 based on ~55 million shares (midpoint $3.20, +92% y/y); capex of $135 million and depreciation near $50 million. For full fiscal 2026 they expect revenue of $14.0–$14.3 billion (midpoint up ~75% y/y), Core Sanmina ~$9.1–$9.2 billion, ZT Systems roughly $4.8–$5.0 billion (11 months), non‑GAAP operating margin 6.85%–7.25%, and non‑GAAP diluted EPS $11.90–$12.20 (midpoint $12.05, ~100% y/y); management reiterated confidence in reaching $16B+ in revenue in fiscal 2027.Sanmina-Sci Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.76B | 8.13B | 7.57B | 8.94B | 7.92B | 6.74B |
| Gross Profit | 1.15B | 716.36M | 640.43M | 743.21M | 622.21M | 526.44M |
| EBITDA | 668.38M | 463.19M | 469.14M | 567.33M | 433.58M | 410.85M |
| Net Income | 308.13M | 245.89M | 222.54M | 309.97M | 240.38M | 249.55M |
Balance Sheet | ||||||
| Total Assets | 9.74B | 5.86B | 4.82B | 4.87B | 4.84B | 4.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 966.22M | 625.86M | 667.57M | 529.86M | 650.03M |
| Total Debt | 2.43B | 394.24M | 384.11M | 421.28M | 412.00M | 386.13M |
| Total Liabilities | 6.98B | 3.32B | 2.46B | 2.56B | 3.02B | 2.33B |
| Stockholders Equity | 2.56B | 2.35B | 2.20B | 2.17B | 1.82B | 1.88B |
Cash Flow | ||||||
| Free Cash Flow | 594.15M | 473.30M | 228.99M | 43.80M | 192.22M | 266.13M |
| Operating Cash Flow | 901.06M | 620.66M | 340.22M | 235.17M | 330.85M | 338.34M |
| Investing Cash Flow | -1.41B | -108.21M | -114.40M | -192.46M | -132.21M | -91.33M |
| Financing Cash Flow | 1.56B | -173.84M | -269.71M | 94.50M | -314.30M | -77.32M |
Sanmina-Sci Technical Analysis
Negative
208.43
Price Trends
225.84
Negative
206.04
Negative
179.04
Positive
Market Momentum
-6.38
Negative
46.75
Neutral
81.52
Negative
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 208.43 is above the 20-day moving average (MA) of 199.87, below the 50-day MA of 225.84, and above the 200-day MA of 179.04, indicating a neutral trend. The MACD of -6.38 indicates Negative momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $7.21B | 38.68 | 12.46% | ― | 14.20% | 15.36% | |
68 Neutral | $2.96B | 54.91 | 4.81% | 0.84% | 8.87% | 39.10% | |
64 Neutral | $20.62B | 44.70 | 12.24% | 0.28% | 16.23% | 65.58% | |
64 Neutral | $6.79B | 72.68 | 3.18% | 1.05% | 0.32% | -18.53% | |
63 Neutral | $10.87B | 34.94 | 12.57% | ― | 58.56% | 19.37% | |
62 Neutral | $14.45B | 57.05 | 11.26% | ― | 27.59% | 149.44% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SANM
Sanmina-Sci
199.15
79.99
67.13%
BHE
Benchmark Electronics
81.26
43.86
117.29%
MKSI
MKS
292.35
194.70
199.39%
PLXS
Plexus
267.68
139.17
108.30%
ST
Sensata
45.79
16.74
57.63%
TTMI
TTM Technologies
130.08
85.47
191.59%
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.