SANMINA CORP (SANM) Stock Fundamental Analysis
NASDAQ:SANM - Nasdaq - US8010561020 - Common Stock - Currency: USD
SANM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. SANM scores excellent on profitability, but there are some minor concerns on its financial health. SANM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SANM had positive earnings in the past year.
SANM had a positive operating cash flow in the past year.
SANM had positive earnings in each of the past 5 years.
In the past 5 years SANM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.88%, SANM is doing good in the industry, outperforming 72.80% of the companies in the same industry.
SANM's Return On Equity of 10.92% is fine compared to the rest of the industry. SANM outperforms 77.60% of its industry peers.
SANM has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. SANM outperforms 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SANM is in line with the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 10.92% | ||
| ROIC | 9.58% |
ROA(3y)5.31%
ROA(5y)5.12%
ROE(3y)12.54%
ROE(5y)11.9%
ROIC(3y)11.14%
ROIC(5y)10.2%
1.3 Margins
Looking at the Profit Margin, with a value of 3.09%, SANM is in the better half of the industry, outperforming 65.60% of the companies in the same industry.
In the last couple of years the Profit Margin of SANM has grown nicely.
The Operating Margin of SANM (4.58%) is better than 61.60% of its industry peers.
In the last couple of years the Operating Margin of SANM has grown nicely.
With a Gross Margin value of 8.52%, SANM is not doing good in the industry: 82.40% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SANM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | 3.09% | ||
| GM | 8.52% |
OM growth 3Y4.33%
OM growth 5Y4.63%
PM growth 3Y-7.46%
PM growth 5Y11.26%
GM growth 3Y2.72%
GM growth 5Y3.31%
2. Health
2.1 Basic Checks
SANM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SANM has less shares outstanding
The number of shares outstanding for SANM has been reduced compared to 5 years ago.
Compared to 1 year ago, SANM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.72 indicates that SANM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SANM's Altman-Z score of 2.72 is on the low side compared to the rest of the industry. SANM is outperformed by 63.20% of its industry peers.
The Debt to FCF ratio of SANM is 1.15, which is an excellent value as it means it would take SANM, only 1.15 years of fcf income to pay off all of its debts.
SANM's Debt to FCF ratio of 1.15 is amongst the best of the industry. SANM outperforms 81.60% of its industry peers.
SANM has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
SANM has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: SANM outperforms 52.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.09
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SANM should not have too much problems paying its short term obligations.
SANM has a Current ratio of 1.96. This is in the lower half of the industry: SANM underperforms 63.20% of its industry peers.
A Quick Ratio of 1.22 indicates that SANM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.22, SANM is doing worse than 69.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for SANM have decreased by -0.72% in the last year.
SANM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.20% yearly.
SANM shows a decrease in Revenue. In the last year, the revenue decreased by -1.50%.
SANM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.67% yearly.
EPS 1Y (TTM)-0.72%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%8.46%
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%8.15%
3.2 Future
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y13.69%
EPS Next 2Y15.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.9%
Revenue Next 2Y7.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.31, SANM is valued on the expensive side.
SANM's Price/Earnings ratio is rather cheap when compared to the industry. SANM is cheaper than 83.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. SANM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.28, SANM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 88.00% of the companies listed in the same industry.
SANM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 86.40% of the companies listed in the same industry.
SANM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SANM is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.23 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
SANM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SANM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SANM's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)1.34
PEG (5Y)1.99
EPS Next 2Y15.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SANM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.24
+2.75 (+2.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change-0.72%
Ins Owners3.15%
Ins Owner Change-2%
Market Cap5.41B
Analysts80
Price Target102 (0.75%)
Short Float %3.92%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.98%
Min EPS beat(2)0.41%
Max EPS beat(2)3.55%
EPS beat(4)3
Avg EPS beat(4)0.65%
Min EPS beat(4)-4.26%
Max EPS beat(4)3.55%
EPS beat(8)5
Avg EPS beat(8)0.34%
EPS beat(12)9
Avg EPS beat(12)3.25%
EPS beat(16)12
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.08%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)7
Avg Revenue beat(16)0.15%
PT rev (1m)12.36%
PT rev (3m)8.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 14.28 | ||
| P/S | 0.69 | ||
| P/FCF | 20.23 | ||
| P/OCF | 14.92 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)5.53
EY5.46%
EPS(NY)7.09
Fwd EY7%
FCF(TTM)5
FCFY4.94%
OCF(TTM)6.78
OCFY6.7%
SpS146.83
BVpS41.5
TBVpS41.5
PEG (NY)1.34
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 10.92% | ||
| ROCE | 12.42% | ||
| ROIC | 9.58% | ||
| ROICexc | 12.34% | ||
| ROICexgc | 12.34% | ||
| OM | 4.58% | ||
| PM (TTM) | 3.09% | ||
| GM | 8.52% | ||
| FCFM | 3.41% |
ROA(3y)5.31%
ROA(5y)5.12%
ROE(3y)12.54%
ROE(5y)11.9%
ROIC(3y)11.14%
ROIC(5y)10.2%
ROICexc(3y)14.4%
ROICexc(5y)13.26%
ROICexgc(3y)14.4%
ROICexgc(5y)13.26%
ROCE(3y)14.44%
ROCE(5y)13.22%
ROICexcg growth 3Y0.47%
ROICexcg growth 5Y-1.86%
ROICexc growth 3Y0.47%
ROICexc growth 5Y-1.86%
OM growth 3Y4.33%
OM growth 5Y4.63%
PM growth 3Y-7.46%
PM growth 5Y11.26%
GM growth 3Y2.72%
GM growth 5Y3.31%
F-Score6
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 18.36 | ||
| Cash Conversion | 75.42% | ||
| Profit Quality | 110.44% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.72 |
F-Score6
WACC8.77%
ROIC/WACC1.09
Cap/Depr(3y)126.73%
Cap/Depr(5y)100.96%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.48%
Profit Quality(3y)65.72%
Profit Quality(5y)94.15%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.72%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%8.46%
EPS Next Y13.69%
EPS Next 2Y15.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%8.15%
Revenue Next Year7.9%
Revenue Next 2Y7.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.5%
EBIT growth 3Y8.46%
EBIT growth 5Y2.88%
EBIT Next Year45.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y171.55%
FCF growth 3Y-4.75%
FCF growth 5Y-1.61%
OCF growth 1Y27.07%
OCF growth 3Y0.19%
OCF growth 5Y-2.34%