177.83 USD
-1.68 (-0.94%)
177.99 USD
+0.16 (+0.09%)
We assign a fundamental rating of 6 out of 10 to SANM. SANM was compared to 124 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make SANM a good candidate for growth investing.
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.
- Each year in the past 5 years SANM has been profitable.
- Each year in the past 5 years SANM had a positive operating cash flow.
1.2 Ratios
- SANM has a Return On Assets of 4.20%. This is in the better half of the industry: SANM outperforms 68.55% of its industry peers.
- Looking at the Return On Equity, with a value of 10.45%, SANM is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- SANM has a Return On Invested Capital of 9.97%. This is amongst the best in the industry. SANM outperforms 85.48% of its industry peers.
- SANM had an Average Return On Invested Capital over the past 3 years of 10.55%. This is in line with the industry average of 8.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 10.45% | ||
| ROIC | 9.97% |
ROA(3y)5.06%
ROA(5y)5.22%
ROE(3y)11.62%
ROE(5y)12.27%
ROIC(3y)10.55%
ROIC(5y)10.34%
1.3 Margins
- SANM's Profit Margin of 3.03% is fine compared to the rest of the industry. SANM outperforms 62.90% of its industry peers.
- In the last couple of years the Profit Margin of SANM has grown nicely.
- With a decent Operating Margin value of 4.86%, SANM is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- SANM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 8.81%, SANM is doing worse than 83.06% of the companies in the same industry.
- SANM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 3.03% | ||
| GM | 8.81% |
OM growth 3Y2.64%
OM growth 5Y5.16%
PM growth 3Y-0.06%
PM growth 5Y8.5%
GM growth 3Y3.92%
GM growth 5Y3.12%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SANM is destroying value.
- Compared to 1 year ago, SANM has less shares outstanding
- SANM has less shares outstanding than it did 5 years ago.
- SANM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.12 indicates that SANM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.12, SANM is in line with its industry, outperforming 44.35% of the companies in the same industry.
- SANM has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
- SANM's Debt to FCF ratio of 0.63 is amongst the best of the industry. SANM outperforms 83.87% of its industry peers.
- SANM has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.12, SANM is in line with its industry, outperforming 53.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.64
WACC15.48%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that SANM should not have too much problems paying its short term obligations.
- SANM's Current ratio of 1.72 is on the low side compared to the rest of the industry. SANM is outperformed by 66.94% of its industry peers.
- A Quick Ratio of 1.02 indicates that SANM should not have too much problems paying its short term obligations.
- SANM's Quick ratio of 1.02 is on the low side compared to the rest of the industry. SANM is outperformed by 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
- SANM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.58%, which is quite good.
- The Earnings Per Share has been growing by 14.53% on average over the past years. This is quite good.
- SANM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
- SANM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.15% yearly.
EPS 1Y (TTM)14.58%
EPS 3Y6.42%
EPS 5Y14.53%
EPS Q2Q%16.78%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.87%
Revenue growth 5Y3.15%
Sales Q2Q%3.91%
3.2 Future
- Based on estimates for the next years, SANM will show a very strong growth in Earnings Per Share. The EPS will grow by 38.62% on average per year.
- The Revenue is expected to grow by 39.83% on average over the next years. This is a very strong growth
EPS Next Y59.95%
EPS Next 2Y38.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year73.15%
Revenue Next 2Y39.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 29.39, the valuation of SANM can be described as expensive.
- Based on the Price/Earnings ratio, SANM is valued a bit cheaper than 66.94% of the companies in the same industry.
- SANM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 18.38, SANM is valued on the expensive side.
- 79.03% of the companies in the same industry are more expensive than SANM, based on the Price/Forward Earnings ratio.
- SANM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SANM is valued a bit cheaper than 67.74% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SANM is valued cheaper than 83.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.5 | ||
| EV/EBITDA | 17.82 |
4.3 Compensation for Growth
- SANM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SANM has a very decent profitability rating, which may justify a higher PE ratio.
- SANM's earnings are expected to grow with 38.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)2.02
EPS Next 2Y38.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for SANM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SANMINA CORP / SANM FAQ
What is the ChartMill fundamental rating of SANMINA CORP (SANM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SANM.
What is the valuation status of SANMINA CORP (SANM) stock?
ChartMill assigns a valuation rating of 6 / 10 to SANMINA CORP (SANM). This can be considered as Fairly Valued.
How profitable is SANMINA CORP (SANM) stock?
SANMINA CORP (SANM) has a profitability rating of 7 / 10.
How financially healthy is SANMINA CORP?
The financial health rating of SANMINA CORP (SANM) is 6 / 10.
What is the earnings growth outlook for SANMINA CORP?
The Earnings per Share (EPS) of SANMINA CORP (SANM) is expected to grow by 59.95% in the next year.