Sanmina-Sci Corp. (SANM)
NASDAQ:SANM
Top Page
Sanmina-Sci
(NASDAQ:SANM)
Select Model
Select Model
Rating:66Neutral
Price Target:
$137.00
▼(-1.13% Downside)
Action:DowngradedDate:03/13/26
The score is driven primarily by solid financial performance (especially strong free cash flow) and a constructive earnings outlook tied to ZT Systems and AI/cloud demand. These positives are tempered by weak technicals (price below major moving averages with bearish momentum) and a high P/E with no dividend yield support.
Positive Factors
Strong free cash flow
Consistent, high free cash flow (TTM op cash ~$735M; FCF ~$518M) provides durable internal funding for capex, integration of acquisitions, buybacks, and debt service. Strong cash conversion (~70% of net income) improves resilience across cycles and reduces reliance on external financing.
Negative Factors
Thin profitability margins
Margins remain thin for an EMS provider (TTM gross ~8.5%, net ~2.5%), leaving limited room to absorb material cost inflation, program start‑up expenses, or end‑market weakness. Sustained margin expansion is uncertain without persistent favorable mix, efficiency gains, or pricing power.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, high free cash flow (TTM op cash ~$735M; FCF ~$518M) provides durable internal funding for capex, integration of acquisitions, buybacks, and debt service. Strong cash conversion (~70% of net income) improves resilience across cycles and reduces reliance on external financing.
Read all positive factors
Sanmina-Sci (SANM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.57B
Dividend YieldN/A
Average Volume (3M)715.07K
Price to Earnings (P/E)42.4
Beta (1Y)1.28
Revenue Growth7.40%
EPS Growth13.79%
CountryUS
Employees32,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.38
Shares Outstanding54,604,890
10 Day Avg. Volume795,626
30 Day Avg. Volume715,069
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 Cap1.14
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda17.89
Forecast
1Y Price Target
$197.50Price Target Upside42.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)9.49
Revenue Forecast (FY)$14.00B
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 Servi...
How the Company Makes Money
Sanmina makes money primarily by providing outsourced manufacturing and related lifecycle services to OEM customers and recognizing revenue from product shipments and services performed under customer contracts. Its core revenue streams typically ...
Sanmina-Sci Key Performance Indicators (KPIs)
Sanmina-Sci Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented a strong start to fiscal 2026 with robust revenue (+59% YoY), substantial EPS growth (+66% YoY), solid operating margins (6.0%) and healthy cash generation and liquidity. The ZT Systems acquisition is accretive and contributes meaningfully to IMS growth (72% YoY in IMS). Management reiterated attractive medium-term growth opportunities in cloud/AI infrastructure, energy, and medical, and provided confident Q2 guidance. Offsetting factors include an elevated inventory base (up 74% YoY) and a decline in inventory turns due to the acquisition, short-term margin pressure in CPS from investments and program transitions, modest weakness in automotive/transportation, and higher near-term capex and expected increases in leverage as working capital is deployed for growth. Overall, positive operational and financial momentum appears to outweigh the manageable integration and working-capital headwinds.Positive Updates
Strong Revenue Growth
Reported revenue of $3.19 billion for Q1 FY2026, up 59% year-over-year and at the high end of guidance.
Negative Updates
Inventory Increase and Turn Decline
Inventory (net of customer advances) of $2.2 billion, up 74% year-over-year driven by the ZT Systems acquisition; inventory turns (net of advances) declined to 5.3x from 5.8x a year ago (Q1 included only two months of ZT COGS, partially distorting the metric).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Reported revenue of $3.19 billion for Q1 FY2026, up 59% year-over-year and at the high end of guidance.
Read all positive updates
Company Guidance
Sanmina guided Q2 revenue of $3.1B–$3.4B (midpoint $3.25B, ~62% YoY) — a range that reflects a full quarter of ZT Systems — with non‑GAAP operating margin of 5.7%–6.2% (mix‑dependent); other income/expense expected to be a net expense of ~$(26)M (includes a full quarter of new debt); non‑GAAP effective tax rate 21%–23%; an estimated ~$3M noncash reduction for India JV partners; non‑GAAP diluted EPS $2.25–$2.55 on roughly 56M fully diluted shares (midpoint $2.40, ~66.7% YoY); capital expenditures of about $95M and depreciation of about $45M. Management also reiterated FY26 is a growth year with core Sanmina expected to grow high‑single digits, a longer‑term operating margin target moving from ~6% toward 6–7%+, a long‑term net leverage target of 1.0x–2.0x (current goal of achieving investment‑grade ratings), and strategic objectives to double revenue over two years supported by AI opportunities (management cited a ~$16B+ AI opportunity by CY27).Sanmina-Sci Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.31B | 8.13B | 7.57B | 8.94B | 7.92B | 6.74B |
| Gross Profit | 789.62M | 716.36M | 640.43M | 743.21M | 622.21M | 526.44M |
| EBITDA | 481.55M | 463.19M | 469.14M | 567.33M | 433.58M | 410.85M |
| Net Income | 230.18M | 245.89M | 222.54M | 309.97M | 240.38M | 249.55M |
Balance Sheet | ||||||
| Total Assets | 9.80B | 5.86B | 4.82B | 4.87B | 4.84B | 4.21B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 966.22M | 625.86M | 667.57M | 529.86M | 650.03M |
| Total Debt | 2.50B | 394.24M | 384.11M | 421.28M | 412.00M | 386.13M |
| Total Liabilities | 7.14B | 3.32B | 2.46B | 2.56B | 3.02B | 2.33B |
| Stockholders Equity | 2.47B | 2.35B | 2.20B | 2.17B | 1.82B | 1.88B |
Cash Flow | ||||||
| Free Cash Flow | 518.34M | 473.30M | 228.99M | 43.80M | 192.22M | 266.13M |
| Operating Cash Flow | 735.45M | 620.66M | 340.22M | 235.17M | 330.85M | 338.34M |
| Investing Cash Flow | -1.52B | -108.21M | -114.40M | -192.46M | -132.21M | -91.33M |
| Financing Cash Flow | 1.61B | -173.84M | -269.71M | 94.50M | -314.30M | -77.32M |
Sanmina-Sci Technical Analysis
Positive
138.56
Price Trends
147.25
Negative
151.84
Negative
132.29
Positive
Market Momentum
-4.29
Negative
52.54
Neutral
92.24
Negative
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 138.56 is above the 20-day moving average (MA) of 132.47, below the 50-day MA of 147.25, and above the 200-day MA of 132.29, indicating a neutral trend. The MACD of -4.29 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 92.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.82B | 24.74 | 12.39% | ― | 1.82% | 56.52% | |
69 Neutral | $16.39B | 36.46 | 11.54% | 0.54% | 8.13% | 780.20% | |
68 Neutral | $5.31B | 155.81 | 1.11% | 1.43% | -8.07% | 63.50% | |
68 Neutral | $11.17B | 41.17 | 10.61% | ― | 17.88% | 91.41% | |
66 Neutral | $7.57B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
62 Neutral | $2.11B | 61.39 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SANM
Sanmina-Sci
138.56
60.03
76.44%
BHE
Benchmark Electronics
59.03
19.71
50.14%
MKSI
MKS
243.68
156.67
180.06%
PLXS
Plexus
217.26
87.02
66.82%
ST
Sensata
36.40
9.36
34.60%
TTMI
TTM Technologies
108.00
85.68
383.87%
Sanmina-Sci Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Sanmina-Sci Shareholders Approve Expanded Equity Incentive Plan
Positive
Mar 12, 2026
On March 9, 2026, Sanmina-Sci stockholders approved an amendment to the company’s 2019 Equity Incentive Plan, adding 1.2 million shares of common stock for future awards to executives, employees, consultants and non-employee directors, with ...
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.