Sanmina-Sci (SANM) AI Stock Analysis

• Market Cap: $5.57B
• Dividend Yield: N/A
• Average Volume (3M): 468.19K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.42
• Revenue Growth: -1.50%
• EPS Growth: 1.84%
• Country: US
• Employees: 32,000
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.41
• Shares Outstanding: 53,463,806
• 10 Day Avg. Volume: 418,200
• 30 Day Avg. Volume: 468,187
• PEG Ratio: -2.42
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.08
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 1.39
• 1Y Price Target: $120.00
• Price Target Upside: 14.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $117.00 ▲(11.51%Upside)

Sanmina-Sci demonstrates strong financial performance and strategic growth initiatives, particularly with its recent acquisition, which enhances its market position. However, the stock's current valuation and overbought technical indicators suggest some caution is warranted.

Positive Factors

Acquisition and Partnerships

The acquisition of ZT systems is seen as strategic and will increase Sanmina’s scale and revenues from cloud and AI sectors.

Financial Performance

Sanmina reported a strong F2Q with revenue at the high end of guidance, and GM and EPS above guidance.

Market Opportunities

SANM should benefit on the Telecom side as networking comes out of an inventory correction.

Negative Factors

Macroeconomic Environment

Positives, like the communications end market coming out of an inventory correction, are balanced by an ongoing weak macroeconomic environment.

Operational Challenges

Program ramps are needed to materialize and get to scale, which presents a challenge in achieving the expected benefits.

Revenue Concerns

ZT is going through a transition period, with expected revenues from the acquired assets being lower than past figures.

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 makes money through its contract manufacturing services, which include offering end-to-end supply chain solutions. The company generates revenue by providing design, engineering, and manufacturing services for complex and advanced electronic products. Its revenue streams are primarily derived from production volumes of these products, often under long-term contracts with key customers across various industries. Sanmina's earnings are bolstered by its ability to offer vertically integrated solutions, which help customers reduce costs and time to market. Key factors contributing to its revenue include its strategic partnerships with leading technology companies and its ability to adapt to industry trends, such as the growing demand for electronic hardware in emerging sectors like 5G technology and electric vehicles.

Sanmina-Sci Financial Statement Overview

Summary

Sanmina-Sci demonstrates strong financial performance with consistent revenue growth and profitability. The company maintains a solid gross profit margin and a strong equity position with low leverage, indicating financial stability. Cash flow generation is robust, supporting future growth and stability. However, there is room for improving return on equity to maximize shareholder value.

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	Sep 2024	Sep 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	640.51M	551.80M	525.71M
EBITDA	482.12M	469.14M	579.95M	463.08M	380.65M	366.75M
Net Income	242.19M	222.54M	309.97M	240.38M	249.55M	133.17M
Balance Sheet
Total Assets	4.97B	4.82B	4.87B	4.86B	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	317.32M	338.27M	346.74M	330.32M	348.00M
Total Liabilities	2.57B	2.46B	2.56B	3.00B	2.33B	2.14B
Stockholders Equity	2.22B	2.20B	2.32B	1.86B	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: 104.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 104.92 is above the 20-day moving average (MA) of 96.96, above the 50-day MA of 89.18, and above the 200-day MA of 80.17, indicating a bullish trend. The MACD of 4.72 indicates Negative momentum. The RSI at 81.50 is Negative, neither overbought nor oversold. The STOCH value of 85.66 is Negative, 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
OSIS	78 Outperform	$3.57B	25.82	16.73%	―	14.93%	12.89%
SANM	77 Outperform	$5.57B	24.10	11.03%	―	-1.50%	1.84%
ESE	74 Outperform	$4.99B	42.36	9.66%	0.17%	8.40%	20.03%
MKSI	74 Outperform	$7.14B	31.72	9.50%	0.83%	-1.14%	―
PLXS	74 Outperform	$3.63B	26.04	10.93%	―	-0.69%	42.26%
CGNX	71 Outperform	$5.76B	50.22	8.02%	0.93%	8.56%	18.99%
Sector *	63 Neutral	$33.85B	5.90	-11.67%	1.83%	5.25%	-18.21%

Sanmina-Sci Corporate Events

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.