Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $6.53B
• Dividend Yield: N/A
• Average Volume (3M): 827.34K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.34
• Revenue Growth: 5.87%
• EPS Growth: 20.66%
• Country: US
• Employees: 32,000
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.53
• Shares Outstanding: 53,284,450
• 10 Day Avg. Volume: 624,790
• 30 Day Avg. Volume: 827,338
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 10.48
• 1Y Price Target: $134.33
• Price Target Upside: 14.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $133.00 ▲(12.95% Upside)

Sanmina's strong financial performance and strategic growth initiatives, including acquisitions, drive a positive outlook. While technical indicators show strong momentum, valuation concerns and potential market volatility should be monitored. The overall score reflects a well-positioned company with strategic growth opportunities.

Positive Factors

Strategic Acquisition

The acquisition of ZT Systems will significantly boost Sanmina's revenue and expand its capabilities in the cloud and AI infrastructure markets, enhancing its competitive position and growth potential.

Revenue Growth

Consistent revenue growth driven by demand in communication networks and cloud infrastructure indicates strong market positioning and product demand, supporting long-term financial stability.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility to invest in strategic initiatives and withstand economic uncertainties, ensuring long-term operational resilience.

Negative Factors

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, potentially limiting the company's ability to reinvest in growth opportunities and impacting long-term financial performance.

Softness in Automotive Segment

Decreased demand in the automotive sector could hinder revenue diversification and growth, affecting Sanmina's ability to capitalize on opportunities in this industry.

Geopolitical Uncertainties

Geopolitical uncertainties can disrupt supply chains and strategic planning, potentially impacting Sanmina's operations and customer relationships, posing long-term risks to stability.

Sanmina-Sci Business Overview & Revenue Model

Company Description

Sanmina-SCI (SANM) is a leading integrated manufacturing solutions company that provides a comprehensive range of services to various sectors, including telecommunications, computing, storage, medical technology, and industrial applications. The company specializes in offering end-to-end solutions, including design, manufacturing, logistics, and repair services for electronic products and components. With a global presence, Sanmina leverages its engineering expertise and state-of-the-art facilities to deliver high-quality and cost-effective solutions tailored to meet the specific needs of its clients.

How the Company Makes Money

Sanmina generates revenue primarily through its manufacturing services, which include printed circuit board assembly, system integration, and supply chain management. The company operates on a contract manufacturing model, where it partners with original equipment manufacturers (OEMs) to produce their electronic products. Key revenue streams include the sale of manufacturing services, logistics and supply chain solutions, and value-added services such as engineering and design support. Sanmina benefits from long-term contracts with major clients in various industries, which provides a stable revenue base. Additionally, the company has strategic partnerships with technology leaders that enhance its market position and contribute to its earnings through collaborative projects and innovations.

Sanmina-Sci Financial Statement Overview

Summary

Sanmina-Sci demonstrates robust financial performance with consistent revenue growth, a solid gross profit margin, and effective cost control. The strong equity position and cash flow dynamics indicate financial stability, although there's room for improvement in return on equity.

Income Statement

Sanmina-Sci demonstrates strong financial performance with consistent revenue growth, as indicated by a TTM revenue increase of 3.7% from the previous annual report. The company maintains a solid gross profit margin of 8.5% and a net profit margin of 3.1%, reflecting effective cost control and operational efficiency. The EBIT margin of 4.5% and EBITDA margin of 5.8% are competitive for the industry, showcasing profitability. Overall, the income statement highlights robust growth and profitability trends.

Balance Sheet

Sanmina-Sci has a strong equity position, with a debt-to-equity ratio of 0.07, indicating low leverage and financial stability. The return on equity (ROE) is 5.4%, showing moderate profitability relative to shareholder equity. The equity ratio of 89.9% suggests a solid financial foundation with substantial shareholder equity relative to total assets. The balance sheet reflects a strong financial structure with low risk from debt but potential for improved ROE.

Cash Flow

The company exhibits positive cash flow dynamics, with a healthy free cash flow growth rate of 17.7% over the previous annual period. The operating cash flow to net income ratio of 1.5 indicates strong cash generation from operations, while the free cash flow to net income ratio of 1.1 confirms efficient conversion of earnings into cash. Overall, cash flow statements show the company's ability to generate cash, supporting future growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	7.57B	8.94B	7.89B	6.76B	6.96B
Gross Profit	668.98M	640.43M	743.21M	622.21M	526.44M	517.16M
EBITDA	482.12M	469.14M	579.95M	463.08M	436.21M	343.88M
Net Income	242.19M	222.54M	309.97M	240.38M	249.55M	133.17M
Balance Sheet
Total Assets	4.97B	4.82B	4.87B	4.84B	4.21B	3.77B
Cash, Cash Equivalents and Short-Term Investments	647.14M	625.86M	667.57M	529.86M	650.03M	480.53M
Total Debt	308.89M	384.11M	421.28M	412.00M	386.13M	401.67M
Total Liabilities	2.57B	2.46B	2.56B	3.02B	2.33B	2.14B
Stockholders Equity	2.22B	2.20B	2.17B	1.82B	1.88B	1.63B
Cash Flow
Free Cash Flow	269.50M	228.99M	45.21M	200.64M	266.13M	236.15M
Operating Cash Flow	362.67M	340.22M	235.17M	330.85M	338.34M	300.56M
Investing Cash Flow	-62.17M	-114.40M	-192.46M	-132.21M	-91.33M	-64.41M
Financing Cash Flow	-266.27M	-269.71M	94.50M	-314.30M	-77.32M	-210.28M

Sanmina-Sci Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.75
• 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 117.75 is above the 20-day moving average (MA) of 116.79, above the 50-day MA of 111.73, and above the 200-day MA of 89.02, indicating a bullish trend. The MACD of 2.22 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 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	80 Outperform	$6.53B	26.25	11.58%	―	5.87%	20.66%
TTMI	79 Outperform	$5.11B	55.47	5.89%	―	14.24%	424.78%
PLXS	77 Outperform	$3.71B	23.42	12.12%	―	2.31%	48.63%
MKSI	74 Outperform	$7.43B	28.11	11.12%	0.80%	4.47%	2887.37%
ST	73 Outperform	$4.59B	41.52	3.78%	1.52%	-7.23%	1278.91%
BHE	69 Neutral	$1.44B	38.07	3.49%	1.70%	-5.95%	-43.46%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%

Sanmina-Sci Corporate Events

Sanmina-Sci Secures $3.5 Billion Credit for Acquisition

On July 29, 2025, Sanmina Corporation entered into a new Credit Agreement involving a $3.5 billion senior secured credit facility to support its acquisition of ZT Group Int’l, Inc. The agreement includes a $1.5 billion revolving credit facility and a $2.0 billion term loan A facility, with the proceeds intended for financing the acquisition, refinancing existing debts, and general corporate purposes. The agreement outlines various covenants and conditions, including interest rates based on leverage ratios, and provides for asset-backed security and default provisions. This move is significant for Sanmina as it enhances its financial structure to facilitate strategic acquisitions, potentially impacting its market positioning and operational capabilities.

The most recent analyst rating on (SANM) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.

Sanmina-Sci Updates Bylaws for Stockholder Meetings

On June 19, 2025, Sanmina Corporation’s board of directors approved amendments to the company’s bylaws, which became effective immediately. These changes reduce the ownership threshold required to call a special meeting of stockholders from fifty percent to twenty-five percent, establish a one-year holding period for stockholders to call such meetings, and update procedural mechanics, reflecting a more modern and clarified governance structure.

The most recent analyst rating on (SANM) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.

Sanmina-Sci Acquires ZT Systems’ Infrastructure Business

On May 18, 2025, Sanmina Corporation announced a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD for $2.55 billion in cash and equity, with an additional $450 million contingent on future performance. This strategic acquisition is expected to enhance Sanmina’s position in the fast-growing Cloud and AI infrastructure market, doubling its revenue scale in three years and being accretive to non-GAAP EPS in the first year post-close. The acquisition will also strengthen Sanmina’s relationships with hyperscaler customers and expand its manufacturing capabilities in the U.S. and Europe, positioning it as a leading end-to-end manufacturing partner for mission-critical technologies.

The most recent analyst rating on (SANM) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Sanmina-Sci stock, see the SANM Stock Forecast page.