Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $8.29B
• Dividend Yield: N/A
• Average Volume (3M): 724.34K
• Price to Earnings (P/E): 34.1
• 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: 639,757
• 30 Day Avg. Volume: 724,341
• 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: 8.27
• Enterprise Value/Ebitda: 11.74
• 1Y Price Target: $180.00
• Price Target Upside: 16.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.92
• Revenue Forecast (FY): $8.68B

• Rating: 78 Outperform
• Price Target: $160.00 ▲(3.80% Upside)

Sanmina-Sci's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth and strategic positioning. However, the high valuation and technical indicators suggest caution due to potential short-term volatility.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong demand and market expansion, supporting long-term business sustainability and competitive positioning.

Cash Flow Strength

Robust cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and shareholder returns.

ZT Systems Acquisition

The acquisition enhances market capabilities in cloud and AI, positioning Sanmina for growth in high-demand sectors.

Negative Factors

Automotive Market Softness

Weakness in the automotive sector could impact revenue streams, requiring strategic adjustments to mitigate long-term effects.

Increased Operating Expenses

Rising operating expenses may pressure margins, necessitating efficiency improvements to maintain profitability.

Higher Foreign Currency Expenses

Foreign currency expenses can affect financial results, highlighting the need for effective currency risk management.

Sanmina-Sci Business Overview & Revenue Model

Company Description

Sanmina-SCI Corporation is a leading integrated manufacturing solutions provider, specializing in end-to-end services for original equipment manufacturers (OEMs) across various industries, including telecommunications, computing, industrial, medical, and defense. The company operates globally, offering a wide range of products and services, including electronic manufacturing services (EMS), custom design, and supply chain management. Sanmina's core competencies include complex printed circuit board assemblies, systems integration, and full product lifecycle management.

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. However, slight pressure on operational efficiency metrics is noted.

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	8.07B	8.13B	7.57B	8.94B	7.92B	6.74B
Gross Profit	706.25M	716.36M	640.43M	743.21M	622.21M	526.44M
EBITDA	497.02M	463.19M	469.14M	567.33M	433.58M	410.85M
Net Income	266.44M	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	2.54B	2.35B	2.20B	2.17B	1.82B	1.88B
Cash Flow
Free Cash Flow	500.38M	478.18M	228.99M	43.80M	192.22M	266.13M
Operating Cash Flow	622.36M	620.66M	340.22M	235.17M	330.85M	338.34M
Investing Cash Flow	-78.23M	-108.21M	-114.40M	-192.46M	-132.21M	-91.33M
Financing Cash Flow	-184.37M	-173.84M	-269.71M	94.50M	-314.30M	-77.32M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 154.15
• 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 154.15 is below the 20-day moving average (MA) of 159.72, above the 50-day MA of 141.00, and above the 200-day MA of 105.45, indicating a neutral trend. The MACD of 3.05 indicates Positive momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 55.64 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	78 Outperform	$8.29B	34.10	10.81%	―	7.40%	13.79%
TTMI	77 Outperform	$6.90B	53.20	8.12%	―	17.88%	91.41%
PLXS	75 Outperform	$3.89B	23.20	12.44%	―	1.82%	56.52%
MKSI	75 Outperform	$10.81B	39.15	11.12%	0.54%	8.13%	780.20%
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	59 Neutral	$4.69B	―	-0.92%	1.49%	-8.07%	63.50%

Sanmina-Sci Corporate Events

Sanmina’s Earnings Call: Strong Growth Amid Challenges

Sanmina’s recent earnings call painted a picture of robust financial health, characterized by impressive revenue and earnings per share (EPS) growth. The company reported strong cash flow and strategic acquisitions that are expected to bolster its market position. Despite these positive developments, challenges were acknowledged in the automotive sector, alongside higher than anticipated expenses.

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.