SANMINA CORP (SANM)
US8010561020 - Common Stock
We assign a fundamental rating of 5 out of 10 to SANM. SANM was compared to 126 industry peers in the Electronic Equipment, Instruments & Components industry. While SANM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SANM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SANM had positive earnings in the past year.
In the past year SANM had a positive cash flow from operations.
In the past 5 years SANM has always been profitable.
SANM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.72%, SANM is doing good in the industry, outperforming 71.07% of the companies in the same industry.
The Return On Equity of SANM (9.42%) is better than 72.73% of its industry peers.
SANM has a Return On Invested Capital of 9.25%. This is in the better half of the industry: SANM outperforms 79.34% of its industry peers.
SANM had an Average Return On Invested Capital over the past 3 years of 11.14%. This is in line with the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROIC | 9.25% |
ROA(3y)5.35%
ROA(5y)5.14%
ROE(3y)12.3%
ROE(5y)11.76%
ROIC(3y)11.14%
ROIC(5y)10.2%
1.3 Margins
With a decent Profit Margin value of 2.94%, SANM is doing good in the industry, outperforming 61.98% 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 (4.57%) is better than 62.81% of its industry peers.
In the last couple of years the Operating Margin of SANM has grown nicely.
Looking at the Gross Margin, with a value of 8.46%, SANM is doing worse than 82.64% of the companies in the same industry.
In the last couple of years the Gross Margin of SANM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.57% | ||
| PM (TTM) | 2.94% | ||
| GM | 8.46% |
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.
The number of shares outstanding for SANM has been reduced compared to 1 year ago.
SANM has less shares outstanding than it did 5 years ago.
SANM has a better debt/assets ratio than last year.
2.2 Solvency
SANM has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.37, SANM is doing good in the industry, outperforming 79.34% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that SANM is not too dependend on debt financing.
SANM's Debt to Equity ratio of 0.13 is in line compared to the rest of the industry. SANM outperforms 52.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC10.16%
2.3 Liquidity
A Current Ratio of 2.05 indicates that SANM has no problem at all paying its short term obligations.
The Current ratio of SANM (2.05) is comparable to the rest of the industry.
SANM has a Quick Ratio of 1.32. This is a normal value and indicates that SANM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, SANM is doing worse than 66.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for SANM have decreased strongly by -14.84% in the last year.
Measured over the past years, SANM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.20% on average per year.
Looking at the last year, SANM shows a very negative growth in Revenue. The Revenue has decreased by -15.30% in the last year.
SANM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.67% yearly.
EPS 1Y (TTM)-14.84%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%0.7%
Revenue 1Y (TTM)-15.3%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%-1.68%
3.2 Future
The Earnings Per Share is expected to grow by 13.82% on average over the next years. This is quite good.
SANM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.94% yearly.
EPS Next Y13.75%
EPS Next 2Y13.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.81%
Revenue Next 2Y7.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SANM is valuated correctly with a Price/Earnings ratio of 14.45.
Compared to the rest of the industry, the Price/Earnings ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 91.74% of the companies listed in the same industry.
SANM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 12.70, which indicates a correct valuation of SANM.
89.26% 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 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SANM is valued cheaper than 87.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SANM is valued a bit cheaper than 76.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 8.04 |
4.3 Compensation for Growth
SANM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SANM may justify a higher PE ratio.
A more expensive valuation may be justified as SANM's earnings are expected to grow with 13.82% in the coming years.
PEG (NY)1.05
PEG (5Y)1.57
EPS Next 2Y13.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SANM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SANMINA CORP
NASDAQ:SANM (1/3/2025, 8:01:15 PM)
After market: 76.3 0 (0%)76.3
+0.83 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.46%
Inst Owner Change-1.52%
Ins Owners2.88%
Ins Owner Change0.11%
Market Cap4.11B
Analysts52
Price Target75.99 (-0.41%)
Short Float %2.76%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.68%
Min EPS beat(2)-4.26%
Max EPS beat(2)2.9%
EPS beat(4)3
Avg EPS beat(4)2.26%
Min EPS beat(4)-4.26%
Max EPS beat(4)6.21%
EPS beat(8)5
Avg EPS beat(8)1.29%
EPS beat(12)9
Avg EPS beat(12)4.75%
EPS beat(16)12
Avg EPS beat(16)6.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.09%
Revenue beat(12)7
Avg Revenue beat(12)1.37%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)0%
PT rev (3m)9.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.7 | ||
| P/S | 0.54 | ||
| P/FCF | 17.81 | ||
| P/OCF | 12.09 | ||
| P/B | 1.74 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)5.28
EY6.92%
EPS(NY)6.01
Fwd EY7.87%
FCF(TTM)4.28
FCFY5.61%
OCF(TTM)6.31
OCFY8.27%
SpS140.34
BVpS43.79
TBVpS43.79
PEG (NY)1.05
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROCE | 12% | ||
| ROIC | 9.25% | ||
| ROICexc | 11.82% | ||
| ROICexgc | 11.82% | ||
| OM | 4.57% | ||
| PM (TTM) | 2.94% | ||
| GM | 8.46% | ||
| FCFM | 3.05% |
ROA(3y)5.35%
ROA(5y)5.14%
ROE(3y)12.3%
ROE(5y)11.76%
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-Score7
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 89.2% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.67% | ||
| Profit Quality | 103.81% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | N/A |
F-Score7
WACC10.16%
ROIC/WACC0.91
Cap/Depr(3y)126.17%
Cap/Depr(5y)100.63%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.47%
Profit Quality(3y)66.02%
Profit Quality(5y)94.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.84%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%0.7%
EPS Next Y13.75%
EPS Next 2Y13.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.3%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%-1.68%
Revenue Next Year8.81%
Revenue Next 2Y7.94%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.12%
EBIT growth 3Y8.46%
EBIT growth 5Y2.88%
EBIT Next Year45.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y427.44%
FCF growth 3Y-4.47%
FCF growth 5Y-1.43%
OCF growth 1Y44.65%
OCF growth 3Y0.19%
OCF growth 5Y-2.34%